The government has submitted the Real Estate Business Bill to the People’s Majlis, with the proposed legislation included in Parliament’s agenda for today, November 9.
The bill aims to strengthen regulation of the Maldives’ real estate sector, protect property buyers and attract major foreign investments while safeguarding national interests and ensuring compliance with Maldivian laws.
New regulatory authority to oversee real estate sector
Under the proposed legislation, a Property Regulatory Authority will be established under ministerial supervision to regulate real estate activities across the country.
The authority will maintain a national real estate register and oversee the licensing and registration of property developers, brokers, agents and valuers. Businesses and individuals operating in the sector will be required to obtain the necessary approvals.
Stronger financial protection for property buyers
One of the bill’s key provisions introduces mandatory escrow accounts for off-plan property developments, where buyers purchase units before construction is completed.
Developers will be required to deposit buyers’ payments into designated bank escrow accounts, with funds released only according to construction progress.
The measure is intended to prevent misuse of buyers’ money, improve financial transparency and strengthen confidence in the property market.
USD 1 billion investment requirement for special real estate zones
The bill introduces Integrated Real Estate Zones to facilitate large-scale property developments and attract international investors.
To qualify, projects must cover at least 200 hectares of land and involve a minimum investment of USD 1 billion.
Foreign investors will be permitted to acquire leasehold rights within these designated zones, subject to specific regulations and restrictions.
Israeli nationals and companies prohibited
The proposed legislation explicitly prohibits Israeli citizens and companies with Israeli shareholding from acquiring leasehold rights within Integrated Real Estate Zones.
It also stipulates that investors from any single foreign country cannot acquire more than 25 percent of a designated zone, preventing excessive concentration of foreign ownership.
The bill further guarantees that Maldivian laws and Islamic Shari’ah principles will remain fully applicable within these developments.
Strict penalties for violations
Existing real estate businesses and projects will be granted a transitional period to complete registration and comply with the new regulatory requirements once the legislation comes into force.
The Property Regulatory Authority will have powers to impose substantial fines, revoke licences and take enforcement action against individuals or businesses violating the law.
The proposed legislation marks a significant move towards creating a more transparent and regulated real estate market, while encouraging foreign investment under clearly defined legal safeguards.
The bill must undergo parliamentary consideration and receive the necessary approvals before becoming law.
