Is it possible to buy a place in paradise? You can’t buy it out, but you can rent it for 99 years; We are talking about the Maldives real estate market – young, expensive and promising – for the first time on HomesOverseas.
There is a young market under the blue sky… And this is the real estate market of the Maldives.
This place does not occupy unprecedented beauty, so it has been known as a tourist destination for a long time. However, as a destination for investment in luxury housing, the Maldives began to develop only in 2022, since the country’s authorities have made conditions more attractive for foreign investors.
Today, a foreign citizen is allowed to purchase real estate in an island country for 49-50 years on the rights of a leasehold (long-term lease), and then extend the contract for the same period. Collectively, you will be able to use and manage (sell, lease) your villa or apartment for 99 years.
Atoll, another atoll
What is the Republic of Maldives?
This is a country in South Asia, almost at the equator, which lies entirely on islands of coral origin in the Indian Ocean, grouped naturally into rings or open rings – atolls. In total, the archipelago of the Maldives has 26 atolls. Administratively, the territory is divided into 20 atolls. Of the 1,192 islands, only 200 are inhabited. A little more than 100 of them are resorts, that is, completely resort.
The capital of the Maldives is occupied entirely by the atoll of the same name – Male. It is the only city and port in the state. International flights arrive at the local Velana International Airport.
Communication between the islands is by water – ferries and boats run – and by air – seaplanes and planes of local airlines ply.
The nearest neighbor of the Maldives is Sri Lanka, however, 700 kilometers of water surface separate the islanders from it. The nearest airport in India is 800 km away.
The population of the state is only about 400 thousand people. But every year, almost 2 million people come to relax on the famous beaches with white sand and clear water: in 2022 – 1.7 million, in 2023 – 1.9 million guests.
Maldives is recognized as the country in the world with the flattest terrain. You can admire the landscape endlessly, but the most interesting thing awaits the tourist not above the water, but under. According to various estimates, from 700 to 3 thousand species of fish live in the local waters. Hello to diving and snorkeling lovers!
Coral reefs are a real treasure of the Republic of Maldives. The islands are surrounded by these colorful underwater living colonies. Many resorts have their own “home” reefs.
Maldives is an Islamic state. Alcohol is strictly prohibited outside the resorts, and you need to adhere to a more closed dress code. At resorts, foreigners are allowed to dress in accordance with their own, not local traditions, and alcohol is allowed.
Who buys real estate in the Maldives?
First of all, those who love these resorts and come here from year to year to enjoy the ocean and the luxurious service of luxury hotels. Among the buyers are mainly Europeans, Russians, as well as citizens of Malaysia, Singapore, the United Arab Emirates, Saudi Arabia, who, among other things, also have a relatively short journey.
Why do foreigners buy a priori expensive villas and apartments in the Maldives? There are three main goals.
Your own vacation
To reserve a suitable house in a popular Maldivian resort, for example, for the New Year, you need to take care of this a few months before your trip. You can get out to your villa at any time, without prior reservation, and relax on it on a fruit and fish diet until you get tired of the latter.
Investment
Real estate in the Maldives is getting more expensive by 3% per year. There are prerequisites for further growth. This is evidenced by the fact that serious developers from the UAE and China are entering the market.
Foreigners who already have a rich portfolio of facilities in different countries like to invest in high-quality new projects. Many people strive not to miss the beginning of the development of this market, hoping to make good money.
Recreation and investments
What is this option? You purchase a villa or apartment and transfer it to the management of the resort. As the owner, you will be able to relax in your property yourself. The rest of the time, it will give up and generate income.
The occupancy rate of hotels in the Maldives is very high, as there is no seasonality as such in this paradise corner of the planet. Even if based on a 65% occupancy rate (a pessimistic forecast), the profitability is estimated to be 8-9% per annum. Pretty good.
What do villa buyers especially appreciate in the Maldives?
What is enclosed in the concept is privacy. This is a real luxury that few places can enjoy, but here it is fully enjoyed. There are houses for sale on islands located at a comfortable distance from other islands. There will definitely be no random people in such places, paparazzi will not get here. Public figures can really relax with their family and children.
What kind of property is for sale in the Maldives and at what price?
2–bedroom apartments in a complex with hotel management will cost from 500,000 – 1 million dollars. These are the most budget offers in this market.
Prices for small, “modest” houses with 1-2 bedrooms start from $ 2 million. Such lots, according to realtors, fly away quickly. The average price of a property with similar characteristics is about $4 million.
Spacious villas with a large territory cost around $ 30 million.
In addition to apartments and houses of different categories, an investor can purchase an entire island in the Maldives for development or a ready-made resort with a hotel. There are also such options!
There is a demand for real estate on the islands. But there are still enough offers for different requests. You can choose, even within the framework of one project, a house next to a gradual entrance to the water, suitable for children, or, conversely, a bungalow from which you dive immediately to the depth of the reef.
Yachtsmen prefer complexes with their own marina.
What taxes will the buyer pay?
- The tax on the purchase of real estate is 16%, but it is calculated from 50% of the value of the property, therefore it is 8%. According to rumors, the government plans to halve it.
- The total deductions to the sinking fund are 1.5% of half the value of the property.
Resume
Maldives is an absolutely different market, as well as the whole region. Chamber resorts on small isolated islands are a completely different atmosphere than party resorts, such as, for example, in the popular Bali.
Holidays in the Maldives are not so variable. Instead of diversity, there is depth (in every sense) and quality. Instead of extreme, relaxation. Instead of democracy, there is elitism and privacy.
As our interlocutors from real estate agencies say, the Maldives is a niche story, and it is in this way that they will develop.
There is definitely something to be inspired in this market! Don’t miss out on interesting projects!
Thank you for your help in preparing the material:
Experts from Metropolitan Premium Properties;
Ekaterina Okhilkova, Head of the Expert Agent agency
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