The enactment of the Strata Properties Act 2021 marks a significant shift in property ownership and real estate development in the Maldives, introducing a legal structure for strata properties — multi-level complexes comprising separately owned residential or commercial units with shared common areas.
This modern legal framework paves the way for organized vertical living and commercial development, providing clarity on ownership, management, and the subdivision of complex properties.
What Is a Strata Property?
Under the Strata Properties Act 2021, a strata property refers to a multi-level building divided into individually owned units or apartments and shared common property such as hallways, staircases, or lobbies. Ownership is dual in nature: each unit owner (or strata title holder) holds a separate strata title for their individual unit while collectively sharing ownership and responsibility for common areas.
The overall property is overseen by a Management Corporation, which represents all individual unit owners and is responsible for the building’s administration, maintenance, and communal decisions.
Subdivision of Units and the Strata Plan
At the heart of the strata framework is the Strata Plan, a critical document that outlines the physical and legal subdivision of a property into individual units and common areas. The Strata Plan must be:
- Approved by the Ministry before any strata titles can be registered,
- Submitted in a Ministry-designated format, and
- Accompanied by required documentation outlined in Section 37 of the Act.
To be eligible for approval, a proposed property must meet four key requirements:
- Multi-Level Structure: The building must have more than one level, with clearly separated strata units and common areas.
- Independent Utilities: Each unit must have its own access to basic utilities (electricity, water, and sanitation).
- Separate Entrances: Each unit must have a distinct and unobstructed entryway.
- Compliance with Laws: The building must adhere to the Construction Act, Land Act, Building Code, and relevant planning regulations.
The Strata Plan must also classify the property as one of the following:
- Solely residential,
- Solely commercial, or
- A mixed-use property.
Additional required information includes:
- Land ownership details (state or private),
- Registration number of the land/building,
- Property or project name,
- Unit measurements and sizes,
- Apportionment of ownership (percentage share of common property), and
- Any further information required under future regulations.
Strata Scheme: Defining Ownership and Governance
Following the approval of the Strata Plan, the Strata Scheme must be submitted. This document lays out how individual units will be sold or transferred, and how shared spaces will be managed, including governance rules for the Management Corporation.
Key points include:
- The scheme may be filed for completed or partially completed properties.
- A minimum of two fully completed units with basic services is required for approval if the building is only partially completed.
- For stage developments, at least 20% of the total development must be completed for the scheme to be approved.
Stage Development: Phased Growth with Strict Oversight
The Act allows for stage development — where a strata property is built in multiple phases over time. Section 60 outlines the criteria for stage development:
- At least four units must be included,
- Development must be carried out by a 100% Maldivian-owned company, partnership, or cooperative society. Ownership shares cannot be sold to non-Maldivians, and
- If not undertaken by the specified entities, procedures must comply with additional regulations to be established under the Act.
Each stage development must include:
- A detailed development proposal from the owner or developer,
- A Stage Development Agreement signed between the developer and the Ministry.
Regulatory Oversight and Transparency
To ensure transparency and compliance, the Ministry maintains an official register of all approved Strata Plans. Any modifications to an approved plan require prior endorsement from the Ministry. If an application for approval is incomplete, the applicant will be given a grace period to provide missing documentation.
Legislative Milestones
- Passed by the People’s Majlis: 29 November 2021
- Ratified and Gazetted: 20 December 2021
- Came into Force: 20 March 2022
The Strata Properties Act 2021 introduces a comprehensive legal framework that facilitates the development and management of modern, multi-unit buildings in the Maldives. By clearly defining ownership, management responsibilities, and approval processes, the Act enables more efficient real estate development and provides robust legal protections for property buyers and developers alike. As urbanization grows and vertical developments become more prevalent, this legislation ensures a structured approach to community living and shared property management in the Maldives.