The Male' Housing Crash Is Coming Soon

one thing covid has taught us is that we can learn and work remotely. not very efficiently but it is possible. and with some extra infrastructure it is possible to do it effectively. but what does this have to do with the male' housing crash

well rent keeps going up but the average income isn't. the currency Maldives use for trading with other countries the USD was printed in bulk during the pandemic. which reduces the purchasing power of USD in turn will affect inflation in Maldives. the inflation of the USD isnt the only factor which affects the male' housing crisis. its always been a bubble.

it started when people started coming to male' and land owners building houses to rent out. but more people started coming increasing demand for housing in turn increasing prices of housing as people were WILLING TO PAY. remember this point is important. as any bubble it will continue to get bigger and bigger as people are willing to put up with the increasing price. but there comes a point when people are no longer willing to pay the high rent and just find it cheaper to go back to their island. i believe one of the biggest factor to this would be

• Cheaper and faster internet.
• ability to have international internet banking (PayPal)

cause every time it gets easier for people to work and transfer money there is a boom in innovation. i remember once bml made their app available a bunch of apps popped up which used the transfer feature. suddenly people didn't need to use cash they can request for services just on their phone and pay using their phones and this paved the way for many Maldivian app startups

likewise faster internet and services like PayPal would mean that people wont have to live in male' for education or income.

of course thats the good ending. that those 2 things happen and it leads to the male' housing crash or there is the more likely bad ending

rent high income low people are forced to leave

when the bubble bursts in this way it would be very bad for the economy. mainly cause people are forced to leave male'. that means alot of jobs are being lost and money circulation will be affected. people moving back to their island will most likely wont have new form of income so will have to find new jobs.

one of the main reasons Maldives as a country is stunned in development is the lack of income sources.

if you want to make money online you either have to jump through multiple hoops to set it up so you can get money in your account or you have to be lucky enough to have a foreign bank account.

looking at other countries for example which were not doing so well economically we can take china and India for example.

before India was the tech outsource land of the world china was the place everyone outsourced their work to. this was when china was struggling financially. this ofc lead to income coming from outside the country which then stayed within the country and circulated. improving and developing the nation. same for India. once people started hiring Indian online to do tasks for them their economy got better and there were more improvements.

Maldives as a country cannot develop while being locked up and our only source of income being resorts. when the housing market crashes we are all gonna be fucked unless there are other ways of getting income. with the way things are headed a crash is inevitable and covid just accelarated it