Construction of 400 Housing Units in Kulhudhuffushi Set to Resume

Housing Development Corporation (HDC) announced the resuming of construction of 400 housing units in Kulhudhuffushi, Haa Dhaalu Atoll, following a halt in the project in 2025.

The contract for the project was initially signed in 2023, with a completion date set for November 2024. The original contractor, Twenty Third Metallurgical Construction Group Co Limited, a joint venture with Dhonbase Private Limited, failed to proceed despite mobilization funds being released by the government in 2025. At that time, the Minister of Housing, Dr. Abdulla Muttalib, confirmed that a new contractor would be sought to complete the project.

The project, which is now awarded to Rainbow Construction by HDC, will restart after preparatory work has been completed. Construction of the units originally began in May 2024 and consists of five 11-storey towers. By the time work was paused, only 18 percent of the project had been completed, including foundation work and pillar installations for some towers.

The 400 housing units will feature three-room apartments, with the government allocating an estimated MVR 443.9 million for the development. Kulhudhuffushi City, home to over 10,000 residents, also hosts families relocating to the island for education and healthcare services.

In addition to these 400 units, the President has announced plans to build another 2,000 housing units in Kulhudhuffushi, with contractors currently being appointed for the expansion. The resumption of the project marks a key step in addressing the growing housing demand in the region.