The Maldives' construction industry demonstrated remarkable resilience and expansion over the past year, solidifying its position as one of the primary drivers of the national economy, according to the latest annual report of Maldives Monetary Authority (MMA).
The sector registered a growth rate of 3.7 percent, reflecting robust activity across multiple sub-segments including resort development, residential construction, and real estate projects.
Financial institutions have demonstrated significant confidence in the construction sector's prospects, with commercial banks increasing their lending to construction and real estate by 13 percent during the reporting period. The report indicates that bank loans to the construction industry maintained a 10 percent growth trajectory, suggesting continued institutional support for the sector's development objectives.
The surge in loan disbursements was primarily attributed to heightened financing for newly developed resorts, residential buildings, housing initiatives, and various real estate development activities across the archipelago. These projects have contributed to expanding the nation's tourism infrastructure while simultaneously addressing domestic housing demands, creating a dual benefit for economic development.
The MMA report highlighted that the real estate sector registered a growth of 5.3 percent in 2024 followed by 3.1 percent in 2025. Though imports of construction items declined by 7 percent in 2024, it surged by 11 percent in 2025, signaling an intensification of development projects.
The construction industry of late, has not been immune to external challenges, particularly those arising from geopolitical tensions in the Middle East. The sector has experienced notable difficulties including supply constraints for essential construction materials and upward pressure on prices for certain inputs. In response to these challenges, the government has engaged in discussions with industry stakeholders to identify viable solutions and mitigation strategies.