The Government made this rent reduction possible by increasing the instalment period on Hiya flats from 25 years to 32 years.
Hiyaa flats in Phase 2 of Hulhumale'
The Maldives, an archipelagic nation in the Indian Ocean, is renowned for its pristine beaches, crystal-clear waters, and vibrant marine life. However, beneath this idyllic facade lies a harsh reality - a severe housing crisis that has been plaguing the island nation for decades. The rising population, rapid urbanization, and limited land availability have led to skyrocketing property prices, leaving many Maldivians struggling to find affordable housing.
In order to combat these rising issues, the Maldivian Government has been carrying out several housing projects, which offer the owners more affordable rent. With housing projects such as the Hiya flats taking off, thousands of Maldivians finally had a chance to live a better life as the rent of the social housing units under the name ‘Hiya flats’ came at more than half the price of a two-bedroom apartment in the City.
While the overall rent of a hiya flat is much lower than any other apartment complex within the Greater Male’ Area, for many the reality of this ‘cheap’ apartment was just a dream as the apartments came unfurnished and tenants were also faced with the reality of the 'moving-in' costs.
On top of that, with the minimum wage of the Maldives being set at MVR 8,000 (USD 519) per month and the rent of hiya flats costing MVR 7,500 along with an additional MVR 1,000 as a maintenace fee, some of the tenants were still struggling to pay rent even after the grace period.
With this, the ‘Hiya Peoples Association’ met with the President of the Maldives in order to discuss the possibility of getting a reduced rent for the Hiya flats. And while many doubted that the Government would make the rent any lower for the housing complex, the Solih government has announced that they will in fact be reducing the rent of hiya flats to MVR 5,300 - which is a reduction of MVR 3,200 from the previous amount.
The Government made this rent reduction possible by increasing the instalment period on Hiya flats. While the tenants living in Hiya flats are currently paying rent, this rent is in fact an hire-purchase method through lease payments, where upon completion the tenant would own the apartment free of rent. While the initial repayment period was set for 25 years, with the increased installment period, tenants will now have up to 32 years to pay off the cost of their apartment.
