Complete Guide to Buying a Beachfront Property in the Maldives

Published on January 17, 2026 and written by Cyril Jarnias

White sand, turquoise lagoons, stilt villas perched above a reef… Buying a seaside property in the Maldives is a dream for many investors and connoisseurs of exceptional destinations. But beyond the postcard image, the Maldivian real estate market is one of the most unique in the world: no freehold ownership for foreigners, a country threatened by rising sea levels, a tax system that is both attractive and complex, and projects often integrated into luxury resorts.

Understanding the Seaside Real Estate Market in the Maldives

The starting point is geography and economy. The Maldives, an archipelago of nearly 1,200 islands spread across 26 atolls in the Indian Ocean, has by definition an extremely limited stock of land. This scarcity fuels an ultra-luxury positioning, with over 130 resorts and an offering largely geared towards a wealthy international clientele.

An Ultra-Prime Market Driven by Tourism

Almost the entirety of Maldivian wealth is tied to the sea. Tourism alone accounts for about 28% of direct GDP, and up to 70% when including indirect effects (transport, construction, services). Before the pandemic, average economic growth was around 6.4% per year; current projections still estimate 5.2 to 7% annual growth until 2027, with a strong recovery in tourist arrivals (over two million visitors in 2024).

This pressure is even more pronounced in the Malé region, the capital, where apartments can reach US$5,000 to US$10,000 per square meter, or even more in the most sought-after locations. In the rest of the country, prices per square meter remain on average lower, but properties truly accessible to foreigners are concentrated in tourist projects or specific urban developments.

A Stable but Vulnerable Economic Context

On a macroeconomic scale, the Maldives shows a GDP of approximately US$5.7 billion, inflation around 3.5%, and a currency, the Maldivian rufiyaa (MVR), pegged relatively stably to the US dollar (approximately 15 MVR to 1 USD). The dollar is widely accepted for tourist and real estate transactions, which simplifies international investments.

For a buyer, this means a real estate market driven by resilient tourism, but backed by a state that must constantly balance tourist development, debt sustainability, and investments to protect a territory that is extremely vulnerable to rising sea levels.

Legal Framework: Why You Will Never Own the Land

Before even looking at a stilt villa floor plan, one must grasp a fundamental reality: in the Maldives, a foreigner cannot buy land as freehold property. All land ultimately belongs to the state, and the Constitution reserves full land ownership for Maldivian citizens.

Freehold vs Leasehold: The Key to Understanding

In most international listings, one sees talk of “property” in the Maldives. Legally, this almost always refers to long-term leasehold rights, not freehold land ownership. The distinction is crucial:

Type of Right	Typical Duration	Land Ownership	Transferable	Impact on Value
Freehold (Outright Ownership)	Unlimited	Owner / Individual	Yes	Stable / Appreciating
Leasehold (Lease)	50 to 99 years	State or Local Owner	Yes (Rights)	Depreciates as remaining term shortens

In the Maldives:

– The vast majority of foreign investors acquire long-term leasehold rights, often between 50 and 99 years, backed by a head lease held by an operator or directly by the state for an island or plot of land.

– Therefore, the value of your asset is intimately linked to the remaining term of the lease. The closer to the expiration date, the greater the discount, unless a clear and secure renewal mechanism has been negotiated.

Governing Texts for Foreign Investment

Several laws and regulations frame the rules for non-resident buyers:

In very exceptional cases, foreign investors involved in large-scale projects can obtain specific concessions, but this remains the exception and requires a bespoke government agreement.

Eligible Zones and Types of Structures

Foreign investment is in practice concentrated in well-defined zones:

The main structures used are:

– Resort Development under Lease: a group obtains a head lease on an island for 50 to 99 years, builds a resort, then resells villas or residences under a sub-lease to individuals.

– Branded Residences: villas or apartments affiliated with a major hotel brand (Hilton, Four Seasons, Soneva, Baccarat, etc.), acquired via strata-title for the duration of the head lease.

– Tourism Joint Ventures: local companies (Maldivian Limited Company) with at least 5% Maldivian ownership, used mainly for large-scale projects.

For any purchase, the lease or strata rights must be registered with the competent authorities to be fully enforceable.

Types of Seaside Properties Accessible to Foreigners

In the Maldives, “seaside” often literally means in the sea. The properties accessible to foreigners are overwhelmingly linked to a tourism operation, whether independent villas, resort apartments, or leases on entire islands for institutional investors.

Stilt Villas, Beach Villas, and Private Islands

The most sought-after typology revolves around three main profiles:

Concrete examples of prices illustrate these ranges:

Type of Property / Project	Location (Atoll or Island)	Indicative Price Range
Premium Overwater Villa	North Malé Atoll	$1.8 to $3.5M (≈ $9,000–12,000/m²)
Stilt Residence	Lhaviyani Atoll	$0.9 to $2.2M
Investment Villas	Addu Atoll	$0.5 to $1.5M
Private Island Lease	Baa Atoll	$8 to $25M
Urban Apartment (Greater Malé)	Malé Region	$250,000 to $900,000
Coral Residences (Resort Apartments)	Kandima, Dhaalu Atoll	From $1.2M
Baccarat Maldives Residences	South Malé Atoll	From $4.94M to over $42.5M
Soneva Fushi / Soneva Jani Villas	Baa & Noonu Atolls	$5M to $15M (e.g., $6M for a 1-bed at Soneva Jani)
Zamani Islands (5* Mega-Project)	South Malé Atoll	From $25M, up to >$40M

These figures show that entry is clearly in the international high-end segment, with a few entry points around $500,000 to $1 million for modest-sized properties in less established atolls, but a majority of offerings above $1.5 to $2 million.

Apartments and Integrated Residences

Beyond individual villas, more and more projects offer: co-ownership apartments, townhouses, and serviced residences.

In the urban Malé region, “classic” apartments can offer sea views, although the density there is incomparable to the ambiance of remote atolls.

Where to Buy: Overview of Key Atolls and Zones

Not all Maldivian islands offer the same investment potential. Infrastructure, accessibility, tourist reputation, and ongoing projects play a determining role.

Must-Consider Atolls for a Seaside Investment

Several atolls stand out for investors targeting a seaside property:

Atoll / Zone	Profile & Strengths	Trends & Key Figures
North Malé Atoll	Historic tourist heart, close to airport, marinas, seaplane hub	Rental yields above 8%, villas $1.8–4M
South Malé Atoll	Mix of accessibility and exclusivity, marina expansions	Villa prices at a 15-year peak
Baa Atoll	UNESCO Biosphere Reserve, manta ray spot (Hanifaru Bay), ecolodges	Strong interest in eco-responsible resorts
Noonu Atoll	Home to signature resorts (e.g., Soneva Jani), future marina complex	Branded villas with target yield 7–9%
Dhaalu Atoll	“Green luxury” developments, projects like Kandima / Coral Residences	Projected capital gains of 20–25% over 5 years
Raa & Shaviyani	Improved accessibility (roads, airports), preserved reefs	Yields already observed 5–7%, strong pre-sales
Lhaviyani Atoll	New deep-water marina, future seaplane terminal	Growing superyacht interest
Addu Atoll	International airport, catch-up potential	“Value” opportunities from $500,000

For a yield-oriented investor, atolls close to Malé and very high-end integrated projects often deliver the best occupancy rates and well-oiled management programs. Emerging atolls, on the other hand, can offer more capital appreciation potential, but with a higher risk regarding market depth upon resale.

Malé and Hulhumalé: Urban Market with Sea Views

The capital Malé and the artificial island of Hulhumalé constitute another facet of the market:

These assets do not match the image of an isolated stilt villa, but may appeal to an investor seeking a more urban asset, with rental demand driven by residents and workers in the tourism sector.

Rental Yield and Investment Potential

Buying seaside in the Maldives is not just about a prestige second home; in many cases, it’s a rental investment managed by a hotel operator.

Management Programs and Rental Income

The vast majority of resorts offer a rental program: when you are not using your villa, it is integrated into the hotel inventory, marketed like any other suite. In return:

Expected net yields vary by property type:

Property Type	Indicative Annual Net Yield
International Brand Stilt Villas	5 to 7%
Beach Villas	4 to 6%
Residences in Integrated Resorts	6 to 8%
Greater Malé Urban Residential	6 to 10% depending on location

High occupancy rates (often above 70% in well-managed resorts) and high pricing in peak season support these performances, but they remain dependent on global tourism health and the resort’s ability to maintain its appeal.

Capital Appreciation and Holding Horizon

Regarding capital appreciation, several trends coexist:

However, it’s essential to keep in mind that the leasehold nature of the asset works against it in the long term: the shorter the remaining lease term, the more the theoretical value contracts, unless a credible renewal scenario is contractually stipulated and the state maintains its policy of lease extensions.

Costs, Taxes, and Taxation: What a Seaside Villa Really Costs

The prices listed in brochures are only part of the bill. In the Maldives, transaction and holding costs include several layers: consumption taxes, tourist fees, lease rents, management fees, and potential profit taxes.

Transaction Costs at Purchase

A foreign investor should anticipate fees in the order of 8 to 12% of the purchase price:

Cost Item	Indicative Level
Goods & Services Tax (GST) on Purchase	6% of property price
Legal Fees	1 to 1.5% of price
Registration Fees	0.1 to 0.2% of price
Agency Fees	0 to 3% (often borne by the seller/developer)
Technical & Legal Due Diligence	Fixed fee often between $5,000 and $10,000
Stamp Duty, Miscellaneous Fees	Variable amount

On top of this, there may be exchange fees (1 to 3%) for investors not buying in dollars, and international transfer fees.

Recurring Costs: Lease Rent, Management, Tourist Taxes

Once you own your leasehold right or your unit in a resort, several annual charges apply:

Important point for individual investors: there is currently no generalized property tax nor a specific capital gains tax on real estate, even though profits can be captured via the business profit tax if the investment is structured through a company.

Attractive Taxation… But to be Aligned with Your Country of Residence

From the Maldivian perspective, the taxation on holding a seaside property thus appears moderate, especially compared to heavily taxed jurisdictions. However, the investor must absolutely consider:

Visa, Residence, and Non-Financial Benefits

For many buyers, becoming the owner of a seaside villa in the Maldives is not just a financial investment: being able to stay regularly and easily in the country is a key element.

Visas Linked to Real Estate Investment

The Maldives has implemented several residency schemes associated with investments:

These schemes do not lead to citizenship or permanent residence, but they offer flexibility for multiple stays, managing your property, and enjoying your villa throughout the year.

“Classic” Tourist Stay

Regardless of investment, the Maldives grants most nationalities a 30-day tourist visa on arrival, extendable up to 90 days. For “vacation home” use, many owners combine this standard regime with occasional longer stays under business or special residence visa cover.

Purchase Process and Due Diligence: How to Avoid Pitfalls

Given the specificity of Maldivian land law, the purchase of a seaside property should never be taken lightly. Due diligence, as much legal as technical and environmental, is mandatory.

The Main Steps of a Purchase

In practice, a typical process unfolds in several phases:

1. Project and Unit Selection You identify a resort or development (for example Coral Residences, Baccarat Maldives, Soneva Fushi, Zamani Islands) via a specialized agent, an international platform, or directly from the developer.

2. Reservation Agreement A Reservation Agreement is signed, accompanied by a deposit (generally between $10,000 and $50,000). This amount may be refundable or not depending on the conditions, hence the importance of reading the contract carefully.

4. Signing the Sales & Purchase Agreement (SPA) The SPA formalizes the price, payment schedule, delivery conditions (for off-plan properties), private usage rights, participation in the rental pool, as well as exit clauses (resale, potential buyback by the developer).

5. Staggered Payments and Construction (if applicable) For an off-plan property, payments follow milestones (foundations, lock-up, finishes…). For a completed property, an initial payment of 20 to 30% is common, with the balance paid upon handover.

The total duration can range from a few weeks for an existing, fully cash-paid property to 2 or 3 years for a construction project.

Environmental Due Diligence: An Imperative on a Threatened Island

Beyond legal aspects, the vulnerability of the Maldives to climate change imposes an environmental check:

– Average island elevation and exposure to flooding (the country’s highest point is 2.4m, with an average of 1.5m).

– Nature and effectiveness of protection structures (dikes, rock armor, breakwaters).

– Condition of the coral reef and restoration projects (many reefs lost up to 75% of their coral during the massive bleaching event in 2016).

– Freshwater and waste management on the island, in a context where over 97% of islands no longer have potable groundwater.

This assessment allows you to judge whether the asset has a reasonable chance of retaining its appeal in 20, 30, or 40 years, while scientific projections mention a sea level rise of 0.5 to 1.1 meters by 2100 and a dramatic increase in flooding episodes.

Financing and Structuring: How to Pay for Your Maldivian Villa

In a market dominated by very high incomes, most transactions are made in cash. It is estimated that over 70% of international buyers pay cash, sometimes by mobilizing credit lines or refinancing in their home country.

Available Financing Options

Several options nevertheless exist:

Many investors rather opt for:

– A bridge loan or mobilization of equity from an existing asset (securities-backed line of credit, mortgage refinancing in their country).

– Structuring via special purpose vehicles (SPV) to optimize taxation and transfer, taking into account new transparency rules on beneficial owners.

Management, Resale, and Exit: Think About the Holding Horizon from the Start

The purchase of a seaside property in the Maldives must not be thought of in isolation: the liquidity of resale is more limited than in a major capital, and the value depends on both the resort, the time remaining on the lease, and the country’s tourist appeal.

Management Models

Essentially, three approaches are distinguished:

Resale and Time Horizon

The resale of a leasehold right or a resort unit often involves:

One of the major determinants of resale value is the remaining term on the lease. When this falls below the 30-year mark, a significant discount generally applies, unless robust and already activated renewal clauses reassure buyers.

Some developments include buyback options by the developer, which can provide security, but these mechanisms must be examined closely (price, timing, conditions).

Risks and Mitigation Strategies

Buying seaside in the Maldives means accepting a particular risk/return profile. Among the main identified risks:

Several levers allow for reducing these risks:

– Choose islands and projects with good coastal protection and slightly higher elevation (Hulhumalé, for example, was raised to around 2m, with infrastructure designed for the future climate).

– Prefer solid international operators, capable of maintaining occupancy and adapting to market changes.

– Demand thorough legal due diligence, by an experienced local firm, to secure lease renewal, transfer, and buyback clauses.

– Subscribe to suitable insurance (natural disasters, business interruption if applicable).

– Avoid over-concentrating your wealth on a single island asset, however appealing it may be.

Buying Seaside in the Maldives: For Which Investor Profile?

At the end of this overview, one conclusion is clear: a seaside property in the Maldives is neither a classic real estate purchase, nor a simple financial investment. It is an enjoyment asset with a strong emotional dimension, situated in a country on the front line of climate change, with a very specific legal framework based on long-term leases.

This type of investment primarily appeals to profiles:

For these investors, the Maldives can offer an attractive compromise between rental yield, prestige, personal use, and status, with the possibility to enjoy a still exceptional natural environment, despite the pressures it faces. Provided the market is approached without naivety, with specialized advice, a deep understanding of local law, and a clear-eyed view of long-term climate challenges.

In summary, buying a seaside property in the Maldives is about combining pleasure and rigor: the pleasure of a spectacular setting and an extraordinary beachfront lifestyle; the rigor of an impeccable legal, financial, and environmental approach to transform a turquoise lagoon dream into a truly mastered investment.