Government housing projects in Kulhudhuffushi remain stalled, while the administration has withheld approval for the City Council’s independent housing initiative for over a year!
Exactly one year has passed since the central government withheld approval for a proposal by the Kulhudhuffushi City Council to develop 150 housing units, an initiative launched by the council to address the city's ongoing housing crisis.


Government halts housing projects in Kulhudhuffushi City. | AI | AI
It has been exactly one year since the central government withheld approval for a housing project initiated by the Kulhudhuffushi City Council, aimed at addressing the city's severe housing crisis.
Citing the current administration’s failure to address the housing needs of Kulhudhuffushi residents, the Kulhudhuffushi City Council has decided to initiate a 150-unit real estate housing project under a contractor finance model. This decision follows extensive consultations with various stakeholders to ensure the project's feasibility. The City Council approved this significant initiative after engaging with multiple local investors and confirming their interest in the development. The project aims to directly address the housing crisis facing the citizens of Kulhudhuffushi City.
Speaking at a public meeting held last Thursday night regarding the project, the Mayor of Kulhudhuffushi City, Mohamed Athif, stated that the City Council decided to undertake the initiative themselves due to the government's failure to initiate any housing projects. He noted that the council sought the necessary approvals from the Local Government Authority (LGA) and the Ministry of Finance on February 27, 2025, in accordance with public finance regulations.
"Today is February 26, 2026. A full year has passed, yet the central government has failed to grant that authorization. I am unsure whether they were simply unable to issue the permit, or if they lacked the political courage to do so because we are delivering housing projects that the government itself has failed to execute."Mayor Mohamed Athif stated.
Mayor Athif further stated that the purpose of a state is to serve its citizens, emphasizing that whether initiatives are undertaken by the council or the central government, the ultimate goal remains fulfilling the needs of the people. However, the Mayor noted that it is a matter of serious concern that the Ministry of Finance has failed to grant the necessary approval even after a year.
Regarding the housing situation in Kulhudhuffushi, the current administration has halted the ongoing construction of 400 housing units on the island. Furthermore, the government has yet to initiate any work on its pledge to provide 2,000 housing units for Kulhudhuffushi. Simultaneously, the 1,000-unit housing project signed by the previous administration with the American firm Structures Unlimited has also failed to progress.
The government has not only failed to initiate any practical development projects for Kulhudhuffushi City but has also actively obstructed the City Council’s efforts to serve the interests of the people. After stalling national housing projects, the government has turned a deaf ear to the Council’s own housing initiative, withholding approval for over a year. This prolonged inaction is a profound injustice to the residents of Kulhudhuffushi.





