Government reveals details of housing projects

Spokesperson at the President’s Office, Mohamed Mabrook Azeez (R) and Ahmed Shaam, the Chief Financial Officer (CFO) of Housing Development Corporation (HDC) (L). | Photo: President's Office

Male’, Maldives – Spokesperson at the President’s Office, Mohamed Mabrook Azeez revealed the details and pricing strategies of the government’s housing projects. 

Mabrook revealed the details at the press conference that was held on Thursday at the President’s Office, where he was joined by Ahmed Shaam, the Chief Financial Officer (CFO) of Housing Development Corporation (HDC).

He highlighted that the government’s housing policy had gathered steam in earnest over the past week, with the introduction of “Gedhoruveriya” loans and “Gedhoruveriya Flats” housing schemes.

Noting that the President had earlier announced the budget for regional housing development projects in 2022 at MVR 1.5 billion, Mabrook stated that the government had prioritised decentralised housing policies.

This was to ensure that every citizen on every island can easily secure practical and affordable housing finance options.

Speaking at the press conference, Ahmed Shaam revealed details of the pricing strategies employed to calculate the Equated Monthly Instalment (EMI) for each housing unit. He also gave precise calculations for the 7,000 residential housing units developed under the “Hiya” housing scheme.

While the previous calculations consisted of finishing costs, land costs, project management costs, and marketing and administration costs, Shaam stated that the government had decided only to include the cost of construction and interest incurred during the construction phase in the total payable by tenants.

Along with this, Shaam revealed the government’s decision to lower the interest rate to a rate equivalent to or lower than the interest rate of loans borrowed for the project.

The low-interest rate for Gedhoruveriya Housing Loan Scheme was met with mixed reviews, while some appreciate the comparatively low rates in the local market, others criticized that the housing loan interests are considerably high in the Maldives when compared to other countries, limiting the ability for locals to build homes.