The monthly payment for the Hiyaa flats in Hulhumale Phase II has been reduced to MVR 5,300 per month. The government announced the rent reduction at a press conference at the President's Office on Thursday.
The former government had decided to charge MVR 5,500 as monthly rent for the Hiyaa flat units. However, the current government decided that the rent charged on the Hiyaa flats would be MVR 7,500, with an additional MVR 1,000 charged as a monthly maintenance fee. The government had earlier said that MVR 7,500 was the minimum rent amount due to the number of loans taken to build the flats.
At Thursday's press conference, State Minister of the Planning Ministry, Akram Kamaluddin, said flat recipients had to spend huge amounts due to the finishing work of the flats being incomplete when handed over to them.
"After taking all these factors into consideration, the President has decided to provide rent relief to all families without discrimination," Akram said.
"This is not a reduction in rent but a relief," Akram said.
At the news conference, Urbanco's Managing Director Ahmed Athif said although the monthly rent has been reduced by MVR 5,300, the maintenance fee would still remain at MVR 1,000. He added that the rent relief provided by the government would extend the loan period from 25 years to 27 years.
