Seven companies have expressed interest in building 2,000 flats under the "End-User Finance" model, which is the second model included in the central bank MMA's Affordable Housing Scheme.
Speaking at the foundation stone laying ceremony for the 364 flats being built in Hulhumalé Phase 1 by BML in collaboration with Amin Construction, Minister of Housing Dr. Abdulla Muththalib stated that many companies have now expressed interest in building flats under the End-User Finance model.
Minister Muththalib said that in addition to the "Lease to Own" first model of the MMA Affordable Housing Scheme, under which BML is building flats, the second solution the government wishes to introduce is a specific solution for families who do not own their own housing but have the capability to purchase if available at an affordable price.
"As these are flats opened for purchase by those without housing, the government will also arrange for buyers to be exempt from paying GST. Additionally, it has been decided not to charge duty on items imported for construction."Housing Minister Muththalib
This involves private companies building flats under the "End-User Finance" model through Public-Private Partnerships.
"When the opportunity was opened for companies wishing to build and sell flats under this principle, seven companies had submitted proposals to build 2,000 flats by the time the deadline expired today," Minister Muththalib said.
"Among them are many large companies active in housing construction in the Maldives."
However, he did not mention the names of specific companies.
Minister Muththalib stated that to lower the price of flats built under this model, the government will arrange land for those companies at no cost. The government also provided land for the flats being built by BML for free.
"As these are flats opened for purchase by those without housing, the government will also arrange for buyers to be exempt from paying GST. Additionally, it has been decided not to charge duty on items imported for construction," Minister Muththalib said.
According to Minister Muththalib, with these concessions, the maximum price determined for selling a three-bedroom flat under the "End-User Finance Model" is MVR 2.3 million. Meanwhile, the maximum price for a two-bedroom flat is set at MVR 1.8 million.
He noted that this is a reasonably low amount compared to the prices currently available in the real estate market. Minister Muththalib stated that these flats will also be sold to those who apply for the current government's housing scheme, meet the eligibility criteria, and receive the highest marks.
The opportunity to apply for land plots and flats under this government's housing scheme is open until the 31st of next month.
