The government announced on Thursday that it has reduced the monthly rent of Hiyaa flats to MVR 6,300, inclusive of MVR 1,000 maintenance fee.
The rental period has also been extended to an additional 7 years. This decision was made after consulting with authorities and was based on demands made by the Hiyaa Union during their meeting with President Ibrahim Mohamed Solih in March. Minister of State for National Planning, Housing and Infrastructure Akram Kamaluddin stated that the decision to reduce rent for seven years was made due to the unfinished state in which the Hiyaa flats were handed over to tenants.
Ahmed Athif, the managing director of Urbanco, explained that the decision to provide rent relief was based on an aggregate figure of MVR 130,000 as the loan amount a tenant would have taken for finishing works. This relief will cost MVR 555,000 per apartment, and the project will cost MVR 3.7 billion in subsidies. Urbanco will manage changes to its loan taken for the project through its cashflows, ensuring that no additional subsidy expenses will be incurred.