Housing and household characteristics household income & expenditure survey 2019

Maldives is becoming increasingly urbanized, with 47 percent of the nation’s population living in the capital city Male’ in 2019. This share is projected to increase further to over 64 percent by 2054. With the increase in migration towards the capital, the population living in the Atolls has declined over the years and is projected to decline further during this period. Demand for housing in Male’ area has skyrocketed, with as high as 60 percent of the population in the capital living in rented accommodation in 2019.

Housing remains a key component of the country’s path to achieving Sustainable Development Goals (SDGs). SDG target 11 (by 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums) and indicator 11.1.1 (proportion of urban population living in slums, informal settlements, or inadequate housing) focus explicitly on this aspect.

Good housing includes aspects such as household access to basic services, access to clean water, and sanitation. Housing conditions and living space as well as location have impacts on access to quality education as well as health care of the population. As such housing remains an integral and key component that cuts across various SDGs.

Distribution of the nation’s population across 20 Atolls in 187 inhabited islands, poses huge challenges in providing access to basic services, including good quality housing. In terms of access to health and education, tertiary-level hospitals are located only in the capital, along with better choices for higher education. With urbanization and population concentration, economic opportunities and job prospects are also much better in the capital. All these acts as pull factors for migration towards the capital city.

Housing has become a major issue for social equity and a challenge towards sustainable development. On average household incomes in the capital is double that of that in the Atolls and expenditure share on rent takes up a huge chunk for those living in rented housing.

During the current COVID-19 pandemic, the need to address the housing situation and overcrowding in the greater Male’ area has been highlighted more than ever. The high share of migrant foreign workers among the population residing in Male’ area, in inadequate housing units and labor quarters affected the situation further.

Access to decent and affordable housing is one of the important pledges of the government. Thus, it is important to provide data that helps understand the intricacies of the housing situation to support informed decisions that result in improving the living conditions of the most vulnerable population.

This study focuses on housing conditions, the nature of rental housing markets, and some characteristics of good quality housing, based on the data collected in the household income and expenditure Survey 2019.

The perspective on long-term population growth portrays that resident population will continue to grow reaching almost a million (974,359 persons) in 2054.

The primary source of this population growth has been migration (rather than natural increase) which is highly dependent on access to basic services and the economy. HIES 2019 estimates 451,622 people in Maldives. This increasing population of Maldives, past and projected, demonstrates that there will be a continued increase in demand for housing and other services. Population growth is forecasted to remain positive and increase as net migration increases. By 2054 as high as 64 percent of the population is projected to live in the Male’ area.

The rapid pace and continued rise in Atoll-to-Male migration in the Maldives show that the need for more housing and services will be concentrated in the Male’ area.

This further emphasizes the need for providing affordable housing, targeted to different income brackets, in order to support those relocating to the capital.