The Maldives’ construction sector maintained steady growth in the final quarter of 2024, supported by rising bank credit and sustained real estate development.
According to the Maldives Monetary Authority’s (MMA) latest Quarterly Economic Bulletin, the Gross Value Added (GVA) for the construction sector increased by 1.6% in Q3 2024 compared to the previous year. Meanwhile, the real estate sector posted a stronger annual growth rate of 7.1%.
A key driver of this expansion was the increased bank credit extended to the construction sector, which rose by 10% during Q4 2024. This growth was primarily attributed to increased funding for real estate development projects, resort renovations, and commercial building construction. Despite this positive trend, a decline was noted in credit provided for new resort developments and residential housing projects.
While construction-related import expenditures remained stable during the quarter, the sector’s expansion highlights its ongoing contribution to the Maldives’ economic growth, particularly as the country continues to invest in tourism infrastructure and property development.
The steady performance of the construction sector aligns with the government’s ongoing Public Sector Investment Program (PSIP), which continues to focus on enhancing infrastructure across key islands. With major projects such as the Velana International Airport terminal expansion underway, construction activity is expected to remain an important contributor to economic growth in the Maldives throughout 2025.
