Both sentences are correct.
"The more densely populated areas have few problems" implies that areas with a higher population density experience fewer issues.
"The more densely populated areas are along the coast" suggests that areas with a higher population density are located near the coast.
"The less densely populated areas are plagued by monsoons" indicates that areas with a lower population density suffer from monsoons.
"The less densely populated areas are engaged in civil war" suggests that areas with a lower population density are involved in civil war.
Which is correct
The more densely populated areas have few problems.
The more densely populated areas are along the coast.
The less densely populated areas are plagued by monsoons.
The less densely populated areas are engaged in civil war.
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