20,000 Housing Applications Submitted, 17,000 Still in Draft Stage, Minister Muththalib Says

Minister of Infrastructure, Housing and Urban Development, Dr Abdulla Muththalib, said 20,000 applications have been submitted for the government’s first housing project, while a further 17,000 forms remain in the application process.

The opportunity to apply for land plots and flats under the government’s first housing project will expire at the end of this month.

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Speaking at a press conference held at the President’s Office, the minister said the figures reflected both the scale of the housing shortage and the high level of demand for housing.

“This number shows the housing difficulties or the number of people in need of housing. In this program, eligibility is granted only if neither spouse owns housing or land. Receiving such a large number of applications even while conducting it with such controls indicates the high number of parties in need of it,” Muththalib said.

He noted that successive governments since 2008 had undertaken housing projects to address the issue.

According to the minister, projects completed during former President Mohamed Nasheed’s administration included 1,000 flats financed through China EXIM Bank assistance, Tata flats in Malé and 180 Coral Ville flats.

Muththalib said more than 10,000 flats were developed during former President Abdulla Yameen Abdul Gayoom’s administration, when President Dr Mohamed Muizzu served as Housing Minister.

These projects included the 407-unit Pink Flats project in Hulhumalé, 7,000 Hiyaa flats, 1,344 Vinares flats and more than 1,000 flats developed by state-owned enterprises.

He added that 4,000 flats initiated under the previous administration were completed by the current government.

The minister stated that the current administration has already commenced physical work on 3,260 flats in the Greater Malé area.

He also said funding arrangements had been finalised for 540 housing units financed by the Bank of Maldives, 500 units to be built through an interest-free loan scheme, 400 flats financed through assistance from the Saudi Fund, and 4,000 housing units in Gulhifalhu under the Indian Line of Credit.

“Even if those projects are not progressing at the desired speed, all of them are projects for which funding has been secured. When this government took office, state debt was high, making it difficult to obtain loans and funds from foreign countries. Therefore, this government is carrying out housing projects by finding innovative models,” Muththalib said.

Land Constraints in Greater Malé

The minister also said housing development in the Greater Malé area is being affected by land limitations and aviation-related height restrictions.

He said the government had previously estimated that around 12,000 housing units could be developed in the area, but revised guidance from the Civil Aviation Authority (CAA) reduced allowable building heights in some zones.

According to Muththalib, areas initially planned for buildings of 17 to 18 storeys can now only accommodate buildings up to 14 storeys due to flight path restrictions linked to Velana International Airport.

He said the ministry currently does not have sufficient land available to expand housing projects further, but discussions are ongoing with the Housing Development Corporation (HDC) to identify additional land for future housing developments.

Private Sector Interest

Muththalib said Maldivian companies had shown strong interest in a government initiative aimed at developing affordable housing through incentives and the provision of free land.

He said proposals for a project involving the construction of 2,000 flats had already been submitted to the Economic Council, while discussions are also ongoing regarding an additional 1,000 flats.

“There is a very large interest in the private sector; as mentioned, if carried out by the state providing free land and offering incentives, the private sector has the interest to sell to first-time home buyers at these controlled prices we are referring to,” he said.

The minister added that the ministry is also exploring ways to assist recipients of land plots in developing their allocated land.