The government subsidizes MVR 3.7 billion for the Hiyaa project, Urbanco has said.
The government today reduced the monthly rent for Hiyaa flats from MVR 7,500 to MVR 5,300 for a period of seven years. The revision extends the loan period from 25 years to 27 years.
Urbanco's Managing Director Ahmed Athif told a news conference at the President's Office today that the monthly rent of a Hiyaa flat apartment is MVR 10,000 when all expenses are taken into account.
"The rent is MVR 10,000 if you factor in construction cost, land price, project management costs, supplementary and administrative costs, and loan installments," Athif said.
Athif said the rent was earlier set at MVR 7,500 based on the amount spent on construction alone. He revealed that the government subsidizes MVR 555,000 for each Hiyaa apartment, which is MVR 3.7 billion for the entire project, he said.
When the Hiyaa project was arranged, the finishing work of apartments was not included in the loan. As a result, apartment recipients were given a seven-month rent-free period to complete the finishing work. Many flat recipients have complained about the significant amounts of money they had to spend on finishing work, which forced many to take out loans. Athif stated that the average cost of finishing work for each apartment was MVR 130,000.
