Real estate bill allows 99-year sale and resale of Rasmale' properties

Properties developed under integrated real estate projects such as Rasmale' can be sold for up to 99 years and later resold to other eligible buyers under the government's proposed Real Estate Business Bill.

The bill, submitted to Parliament where the ruling People's National Congress (PNC) holds a supermajority, seeks to establish the legal framework governing integrated real estate developments, including the multi-billion-dollar Rasmale' project.

Under the proposed legislation, leasehold rights to properties developed within an integrated real estate zone may be sold for a period of up to 99 years to individuals who meet the eligibility requirements set out in the law and related regulations.

The bill also grants purchasers the right to transfer or sell those leasehold rights to another eligible party.

“A person who has purchased leasehold rights to property developed in an integrated real estate zone has the right to sell the property to another person in accordance with the provisions of this section,” the bill states.

The legislation further clarifies that purchasing property in an integrated real estate zone does not grant any right to Maldivian citizenship.

Under the bill, the master developer leasing the zone would be responsible for developing, maintaining and managing the area, as well as selling leasehold rights to properties developed within it. The master developer may lease an integrated real estate zone for a maximum period of 99 years.

The bill also stipulates that the expiry of the zone's lease period would not affect the rights of individuals who have acquired property within the zone in accordance with the law.

Notably, the proposed legislation prohibits Israeli citizens and Israeli-linked entities from purchasing property in integrated real estate zones. It also allows authorities to revoke property rights acquired through false or misleading information and transfer those rights to the state.

In September, the government signed an agreement with Abu Dhabi-based Eagle Hills for a USD 20 billion (MVR 308 billion) waterfront and marina development in Rasmale'. Under the agreement, 500 hectares of land will be leased to the developer for 99 years to build a modern city and marina.

The Rasmale' project forms part of President Dr. Mohamed Muizzu's pledge to provide a long-term solution to housing shortages in the Greater Male' region. Officially launched on December 18, 2023, it is the largest land reclamation project ever undertaken in the Maldives.