Bolifushi is a small private island in South Malé Atoll, close enough to the airport for a short speedboat or catamaran transfer but far enough from Malé to feel properly lagoon-bound. It is not a village island and it does not have an independent backpacker scene; the island is essentially a single high-end resort set in a shallow reef lagoon.
That makes Bolifushi easy to understand. You come here for overwater villas, calm swimming, spa days, snorkelling from the house reef, and boat-based diving in the South Malé channels. If you want local cafes, ferries, and Maldivian island life, look instead to Maafushi or another inhabited island in the atoll.
The practical advantage is access. Transfers are short by Maldivian standards, so Bolifushi suits travellers who want the private-island version of the Maldives without spending half a day on a seaplane connection.