State to Spend MVR 178m on Rent for Government Offices in 2026

The Maldivian government is expected to spend more than MVR 178 million on renting office space in 2026, according to figures in the proposed state budget and submissions made to the budget review committee.

The 2026 state budget estimates MVR 178.3 million will be spent on renting buildings for government offices, an increase of MVR 85.8 million compared with the projected expenditure in the 2025 budget. The figures reflect a continuing rise in the state’s rental bill for administrative offices, both at home and abroad.

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Budget book statistics show the government currently pays rent for 97 establishments used by 32 state institutions, with embassies and high commissions overseas accounting for the largest share of spending. A total of MVR 53 million is estimated to be spent on diplomatic premises this year.

The state’s rental outlay peaked during the COVID-19 pandemic, when MVR 252 million was spent on private buildings. According to the budget documents, this was largely driven by the cost of vaccination and testing centres, quarantine facilities and other emergency infrastructure. The relocation of offices from the Huravee Building, which was deemed to be in disrepair, also contributed to higher expenditure.

The budget book notes that an office complex was constructed in Hulhumalé during the previous MDP administration. However, it states that under the current government the number of offices has increased and that, by 2024, the state had paid more than MVR 176 million in rent to private landlords.

Appearing before the budget review committee, Minister of State for Finance Ahmed Saaid Mustafa told MPs that MVR 176 million had been spent on rent for state offices in 2024. Of this, MVR 53.2 million went to embassies under the Ministry of Foreign Affairs. He detailed that MVR 8.3 million was paid for two buildings used by Maldives Immigration, MVR 7.9 million for National Social Protection Agency (NSPA) buildings, MVR 7.8 million for the Auditor General’s Office and MVR 6.6 million for two buildings occupied by the Ministry of Agriculture.

Saaid said the average rent for government offices ranges between MVR 50 and MVR 54 per square foot, adding that this is higher than prevailing market rates. He also told the committee that tenders for office buildings were in some cases being opened on the expectation that “a certain group of people” would submit bids, prompting questions from members about fairness and value for money.

MPs on the committee voiced concern over the scale and trajectory of rental spending, reiterating long-standing calls for a purpose-built government office complex to consolidate ministries and agencies currently scattered across private buildings. Committee chair and Eydhafushi MP Ahmed Saleem said the state is effectively spending, each year, an amount comparable to the cost of constructing such a building.

According to the budget book, construction of an office building to house government offices is being undertaken through the Housing Development Corporation (HDC).