State extends Hiyaa flat installment period, drops rent

The state has announced an increase in the installment period on Hiyaa social housing flats, which will result in a reduction of the monthly rent to MVR 5,300.

This was confirmed by a senior government official to Mihaaru News on Friday, although further details were not provided. However, the official sais that the reduction in monthly rent was due to the loans acquired by flat owners to complete the finishing works of the flats.

According to the official, the loan period has been extended by another seven years on top of the previously confirmed 25 years, bringing the repayment period up to 32 years.

The decision was reportedly made during a meeting at the President's Office last week.

Meanwhile, Urbanco stated that they were still in discussions with both the President's Office and the Ministry of National Planning, Housing and Infrastructure regarding rent reduction.

"This will bring a positive change to the residents living in Hiyaa housing flats," an official from Urbanco said.

The social housing towers, which were developed during former President Abdulla Yameen's administration, currently have a monthly rent of MVR 7,500, with a separate maintenance fee of MVR 1,000.

In response to weeks of complaints and protests by residents, the current administration has reduced the monthly rent for the Hiyaa housing flats. The residents had been demanding a rent reduction to MVR 5,000, which the government had previously said was not feasible.

Earlier in March, President Ibrahim Mohamed Solih met with members of "Hiyaa Rayyithunge Gulhun", a union formed among Hiyaa flat residents, to discuss the administration's plans to reduce the monthly rent.

During the meeting, members of the union proposed two ways to reduce the rent. The first was to reduce the rent for the duration of the loan taken by the flat owners to complete the finishing works of the apartments. The second suggestion was to reduce rent prices for low-income earners identified through a survey.