Fifty Arabiyya and Gaakoshi Tenants to Receive FDC Flats

The Ministry of National Planning, Housing, and Infrastructure has decided to offer flats being developed by Fahi Dhiriulhun Corporation Limited (FDC) to 50 Arabiyya and Gaakoshi tenants who bought the apartments at higher interest rates.

The construction of 90 apartments on the Arabiyya land plot and 198 apartments on the Gaakoshi land plot originally commenced during President Mohamed Nasheed’s administration under the Veshi Fahi Male’ programme. This initiative was aimed at providing housing with an extended repayment period. 

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However, during President Abdulla Yameen’s administration, the prices were increased, leading recipients of the flats to resort to bank loans with higher interest rates to make their purchases.

Minister of State Akram Kamaluddeen stated in an interview with PSM News that the government had engaged in discussions with various banks in an attempt to alleviate the financial challenges faced by tenants of Arabiyya and Gaakoshi flats by reducing interest rates. Unfortunately, no agreement was reached with the banks. 

Consequently, President Ibrahim Mohamed Solih made the decision to offer flats currently under development by FDC in Hulhumale’ to 50 tenants who had taken out loans to purchase their homes. 

Minister Akram emphasised that all tenants residing in Arabiyya and Gaakoshi flats now have the opportunity to apply for land plots under the administration’s new housing programme.

State Minister Akram has accused the previous government of intentionally raising the rent of the Gaakoshi and Arabiyya flats. In 2010, President Nasheed’s administration had established a monthly rent of USD 454 for the flats, coupled with a USD 1,800 down payment and a 20-year repayment period. 

However, President Yameen’s subsequent administration resumed construction of the flats after allocating an additional USD 18 million to the project through the Housing Development Corporation Limited (HDC). This increase in project costs subsequently raised the prices of the flats.

In 2016, the government decided to sell the flats with a payment requirement of USD 130,000. Additionally, in 2017, the flats were placed under the jurisdiction of HDC. 

This change resulted in tenants being required to pay USD 130,000 within five years, and those who could not meet this requirement were advised to explore the option of selling their flats.