The government has increased the prices for the 4,000 flats allocated under the ‘Gedhoruveriyaa’ Scheme.

Looking at the prices set by the former administration for the flats to be allocated under the homeownership scheme, being constructed in the second phase of Hulhumalé through the Fahi Dhiriulhun Corporation, it was decided to charge MVR 7,000 for a three-bedroom apartment. MVR 1,000 was set as a maintenance fee. The price for a two-bedroom apartment was set at MVR 5,000 with a MVR 1,000 maintenance fee.

Minister of Construction, Housing and Infrastructure Dr. Abdulla Muththalib, said that the amounts set by the former administration were not based on an assessment considering the loan repayments the state has to make. He also said that these amounts were not in line with the prices set for projects carried out by the government so far.

The housing minister added that while Hiyaa flats were set at MVR 7,000, a two-bedroom apartment in the FDC flats was set at MVR 5,000. The minister stated that he does not believe these prices are the most appropriate or fair amounts.

The minister said that according to FDC's calculations, if the government were to recover the loan repayment amount, they would need to charge MVR 13,000 per month for a three-bedroom flat and MVR 9,000 for a two-bedroom flat. With this, the incumbent administration has since decided to subsidize to some extent, charging MVR 7,000 for a two-bedroom flat and MVR 9,000 for a three-bedroom flat.

The minister said that these amounts were set to make such projects sustainable without burdening the state budget. He stated that this is the amount approved by the Economic Council after calculations by the Ministry of Finance and as proposed by the government.

The housing minister said that even at these rates, the government would need to subsidize MVR 100 million annually.