With the Hiyaavahi finance scheme, Maldivian citizens can now explore affordable home construction loans at a 5 percent interest rate, which will take home-building projects across the Maldives to the next level.
The President's Office
Over the years, the Maldives has seen a number of housing schemes introduced by different Governments as a way of addressing the housing crisis in the Maldives. Although housing and land ownership in the past were a private affair, later on the Government had to intervene due to the increasing scarcity of land, high costs of construction and reclamation, the need to accommodate many more uses, and to respond to the need and desire of households to locate in areas that are better serviced, secure and have better economic prospects. With this, the Ministry of Housing and Urban Development was formed in 2005, which started an era of formulating and implementing the National Housing Policy. Since then, the Maldives has seen several housing schemes ranging from the Hiyaa Flats in Phase II to the Gedhoruveriya scheme.
While these housing schemes have provided hope for affordable housing in the Greater Male’ Area, there were still some housing issues that were left unaddressed. One such issue is the cost of financing affordable home construction in the Maldives. Although getting proper housing, even under a Government initiative can be a struggle on its own, another issue that people face after getting their own land or housing is the dire cost of home-building projects. This issue was highlighted, especially following the handover of Hiyaa flats as citizens expressed the heavy loans and interest rates they faced when it came to actually developing and building their apartments. While the Government at the time gave a grace period to give the new homeowners more time to gather funds and settle down, the real issue around the cost of home renovation was still not fully addressed.
In order to address these issues while also fulfilling a promise of President Dr Mohamed Muizzu, the Government officially launched the ‘Hiyaavahi’ finance scheme on November 5, 2024. With the Hiyaavahi finance scheme, Maldivian citizens can now explore affordable home construction loans at a 5 percent interest rate, which will take home-building projects across the Maldives to the next level. In addition to being a solution for new home-owners moving into their housing flats in the capital city area, this financing scheme will also be a ray of hope for Maldivians living on islands looking to renovate their homes at an affordable cost.
The Hiyaavahi finance scheme offers loans in three different categories, targeting different regions with tailored loan caps. In order to make the loans accessible and a reality for home-owners, the Government has collaborated with Housing Development Finance Corporation (HDFC) as well as two of the main banks used by locals, the Bank of Maldives (BML), and Maldives Islamic Bank (MIB).
The categories for the Hiyaavahi Finance Scheme are as follows:
Just like any housing scheme in the Maldives, this new era of housing development projects that was introduced by the Government also includes eligibility criteria which interested citizens can access through Gazette by the end of the week. Additionally, parties looking to apply for the loan can process their application through the Hiyaavehi Portal to be one of the lucky citizens who will get to renovate their house at a more affordable cost. With the Government having allocated up to MVR 2 billion annually for the scheme, new opportunities are going to be opened up for families across the Maldives who are dreaming of building their homes.
