FDC Defends Pace of Flat Completion Amid Opposition Criticism Over Rent Hikes

MV+ News Desk | July 30, 2025
FDC Managing Director Hamdhan Shakeel briefs President Dr. Mohamed Muizzu on the Udhares and Dhodhi housing project, highlighting final works needed before completion. | Photo: FDC

The Managing Director of Fahi Dhiriulhun Corporation (FDC), Hamdhan Shakeel, has defended the government’s handling of the ongoing Udhares and Dhodhi housing projects, stating that only final works remain to secure utility connections and permits, while the opposition Maldivian Democratic Party (MDP) accuses the current administration of mismanagement and unjustified rent increases.

Hamdhan Shakeel has said the long-delayed Udhares and Dhoadhi housing projects are nearly finished, with only a series of final installations pending before residents can move in. In a post on social media platform X, he stated that the remaining works — including the installation of building signage, CCTV networks, garbage chutes, boom gates, landscaping, utility connections and GPON systems — are critical to providing water, electricity and internet to the flats.

He noted these works had been excluded from the original scope under the previous administration, stating that what is now being completed “is what President Solih opted not to proceed with.” Hamdhan added that the current government had taken the necessary steps to finish these tasks quickly to hand over the apartments.

In response, the opposition Maldivian Democratic Party (MDP) rejected the claim that such works were deliberately left out of the agreement. In a statement, the party argued that these provisions could not have been removed unless they had first been included, and asserted that it is the government’s responsibility — through FDC — to coordinate installation of utilities and final fittings once the contractors finish structural works.

The MDP said planning for these final installations began in 2022 under the previous government, and insisted that all related costs were to be covered by the state. The party also accused the current administration of incompetence, arguing this had delayed the handover of the flats to residents.

The 4,000-flat housing project, built with a $227 million (MVR 4.2 billion) loan from India’s Exim Bank, consists of 2,800 three-room units and 1,200 two-room units. Construction was carried out by India’s National Buildings Construction Corporation (NBCC) and Kalpataru Projects International Limited (KPIL). The completed towers were officially handed over during Indian Prime Minister Narendra Modi’s state visit to the Maldives this week.

Meanwhile, debate has intensified over rising rents. Former President Ibrahim Mohamed Solih called on the government to honour the previously announced rates of MVR 5,000 for two-room units and MVR 7,000 for three-room units. Under new pricing, FDC set rents at MVR 8,000 (including maintenance) for two-room units and MVR 10,500 for three-room units, also requiring tenants to pay MVR 25,000 upfront.

To ease the burden, FDC last week introduced a subsidy scheme offering discounts on monthly rent based on payment date. Under this scheme, tenants who pay earliest receive the largest subsidy, while those paying after the 26th of each month must pay the full revised amount — which can reach up to MVR 14,500 for three-room flats.

However, there have also been reports and criticism that the subsidy system effectively acts as a penalty on apartments whose residents are unable to pay early, rather than serving as genuine financial relief. Critics argue that this approach risks disproportionately affecting lower-income families who may already struggle with upfront costs.

FDC has now started signing lease agreements with tenants, offering the apartments under a 25-year lease-to-own model. Under Solih’s plan, there would have been a three-month grace period before rent payments began, which has not been included in the current handover process.

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