The Maldivian government, through the Ministry of Tourism, has officially unveiled the “Strata Villas Regulation” (Regulation Number: 2023/R-154), a pivotal piece of legislation designed to govern the long-term lease of villas and rooms within integrated tourist resorts under a strata principle. This regulation provides much-needed clarity and a structured framework for both developers and potential lessees in the luxury tourism sector.
The new regulation outlines comprehensive rules and procedures for the lease of individual villas or rooms, including all their furnishings and movable items, for extended periods. This initiative aims to streamline operations and enhance investor confidence in the Maldives’ burgeoning tourism industry.
Key Provisions of the Strata Villas Regulation:
- Broad Scope: The regulation covers individual villas and rooms, along with their contents, leased under a long-term strata arrangement.
- Eligibility and Registration: Only specific, qualified entities are permitted to lease villas or rooms under this principle. The Ministry of Tourism is tasked with maintaining a diligent register of all such leases, ensuring transparency and proper oversight. This register will meticulously record crucial details such as the resort’s location and the lease’s commencement date.
- Conditions for Villa Leasing: To qualify for strata leasing, villas must meet several stringent criteria:
- Their land or lagoon area must be clearly demarcated on the tourist resort’s or integrated tourist resort’s site plan.
- Each bedroom must feature an en-suite bathroom with private access.
- Villas must include a common room for the occupants’ use, in addition to the bedrooms.
- All construction must strictly adhere to the Ministry of Tourism’s standards for tourist resorts, with all requisite permits secured.
- Importantly, individual villas leased under this principle can only be leased to a single party.
- Conditions for Leasing Individual Rooms and Apartments: The regulation extends similar rigorous conditions to individual rooms and apartments leased long-term within multi-unit buildings. These include clear site plan designation, separate design for units and common areas, independent basic services, and non-interfering access. Compliance with Ministry of Tourism construction standards and permits is mandatory, and each room or apartment can only be leased to a single party.
- Rights of the Lessee: The regulation clearly defines the rights of parties entering into long-term strata leases:
- Access: Lessees are granted stipulated access to the resort where their leased property is located.
- Usage: They have the right to use the villa or room without hindrance, as outlined in their lease agreement.
- Mortgage: Lessees possess the right to mortgage their leased property rights to secure loans, provided all regulatory procedures are followed.
- Subleasing: While direct subleasing to a third party is generally prohibited, the regulation permits the use of the leased villa or room for commercial purposes targeting tourists, through a management agreement with the resort operator.
- Basic Services: Lessees are entitled to essential resort services such as electricity, water, waste disposal, and communication services, in accordance with the regulation and their lease agreement.
- Lease Agreements: A formal lease agreement must be established between the long-term lessee and the operator of the tourist resort. The duration of this agreement is intrinsically linked to the overall lease period of the tourist resort or integrated tourist resort itself.
This new regulation marks a significant step towards formalizing and regulating a growing segment of the Maldivian tourism market. It offers enhanced legal certainty for both investors looking to develop strata properties and individuals seeking long-term accommodation within the country’s world-renowned resorts. Parties interested in these opportunities should carefully review the full regulation and seek legal counsel to ensure full compliance.