When entered from the door there was a mattress on the doorstep. Besides, there was the TV that the whole family watch. The dining table which everyone dine is likewise kept there. Clothes were hanged to dry on an iron-bar that was fixed to the wall. Moreover, the ironing board and washing machine were kept there. That is the sitting room, dining room, and even bedroom. However, this is not one’s own household. The whole family lives there for rent. Hardly can meet the end with the earnings of husband and wife.
This is the condition of most of the households in Male’. The living condition of several families in this overcrowded small city. The main complaint of these people is not having a household to live and the prohibitively expensive housing rents in Male’. While this is the situation, what is heard is that with the introduction of income tax the rent of housing increasing as well.
There is a heated debate at the moment when the government introduced income tax, housing rent having increased by the house owners to the same amount of income tax charge. This happened in the while the Male Tennant’s Union (MTU) are preparing to submit a petition to the parliament requesting to control housing rents of Male’. Even in the most widely used “Holhuashi” (information discussion table) social media in the Maldives, these days the heated discussion is on the issue of rent.
Lands in Male’, a major commercial venture
The buildings in Male are millions of Maldivian Rufiyaa investments. Most of those buildings are business ventures built obtaining loans by mortgaging the houses. The rented houses/apartments are being changed to state-of-the-art style. The economists, businessmen and those who research the issue of Male’ housing rent say that the landlords/lessors should have the right to set the price as they wish to.
The Businessman and MP of Henveiru Northern Constituency Hussain Shaheem say that it is not wise to control housing rent of Male’. Most households are built obtaining a short-term commercial loan. If such places' rent is controlled, the market will deteriorate. The loans have to be paid back with interest. Several business ventures will fail and loans will be ceased for further building construction.
“The People of Male’ obtain loans on commercial rates for housing. I believe that the government will not say that the rent has to be at a certain level when a loan is obtained at commercial rates to pay within four years. The banks will not find it feasible to provide loans if rent is controlled. The rent of a building that is constructed obtaining a huge loan cannot be brought down”, said Hussain.
Nevertheless, some others'views are different. The MP Ali Hussain from Kendhoo Constituency who has been researching the issue extensively said that rent can be controlled and that it can be regulated.
Most lands of Male’ are municipal lands, few lands are owned by the landlords. The municipal lands are owned by the government. In such lands as well, individuals have built houses for commercial purposes. The government must regulate those buildings.
He is not against the reasons the rent is high. That is because of the high demand for Male’. In that regard, the buildings for housing are constructed obtaining loans at higher interest rates. Moreover, the interest on loans is high because there is a high demand for housing loans in Male’. There is a guarantee that housing loans will be paid back renting the houses.
One of the founding members of MTU, Shain Yusuf also note those issues. Most people live on rent in Male’. There are several reasons to control the rent. Paying a huge amount for advance payment and not getting back any amount when moving out, increasing the rent at any time and so on. Even though the landlords of Male’ have been renting at higher prices there is no solution for the issue. The governments’ policies are not implemented.
The debate is heated in Twitter among senior politicians and the other individuals. An individual who responded to Ali Hussain said that a municipal land is handed over to an individual based on an agreement between the government and the individual and that it is a legal agreement. The government also has to respect it. Any legal business should be allowed for the benefit of the individual.
Need a solution, a prolonged issue.
The members of MTU who are preparing a petition on the issue of housing rent says that the issue is not the government’s policy to control the rent but rather not implementing the policy. The government is not implementing policies to solve the issue based on the changing conditions of the Maldives. To address the issue, mainly most governments have increased social housing of Male’.
Hulhumale’ is also reclaimed to reduce the overcrowding in Male’ during the presidency of former president Maumoon Abdul Qayyoom. It was targeted to provide at least 500 housing units annually. However, when Maumoon’s presidency was over, it was not even close to the estimated figures. Then there was president Mohamed Nasheed. Meanwhile, some social housing units were built, Gulhifalhu was reclaimed and some social housing projects were implemented to populate people there.
However, during the presidency of Abdulla Yameen, the projects implemented by Nasheed went into issues. Among those who received apartments from Gulhifalhu were given apartments from some other places while there are over 142 who did not receive apartments whereas others are still in rented small rooms. Later in Hulhumale’ more than 6000 housing projects were implemented. But the current government has said those apartments were not provided to the rightful people and is investigating the matter. Furthermore, saying that there were additional costs involved, it was decided to rent for MVR 11000 which is not easily affordable for a common citizen.
Mohamed Waheed from Ungoofaaru Constituency said that if the government has provided housing units in Male’ and other islands at an affordable price, then the issue will be solved. Moreover, if the islands are developed according to the decentralization policy then the issue will be solved. This is the policy of the current government as well.
Most of the people who research on the issue say that the permanent solution for the issue is decentralization. People from various corners of the Maldives migrate to Male’ for basic needs such as employment and education because these services are sufficiently not available in the other areas of the Maldives.
Ali Hussain also noted those issues. The main issue is centralizing everything in Male’. However, in his view, decentralization should be done commercially as well as economically. Even the current government is unable to do that. Mega economic projects are focused on the Male’ region. A larger portion of the government budget is allocated for that region. As a result, the demand for Male’ is unchanged.
“Bridges, commercial harbors and Yacht Marinas are for Male’. New Cancer Hospital is also for Male’. The rent issue of Male’ will be solved by reducing the demand for Male’ by implementing those projects that will lead to overcrowding in Male’, in other islands. There are other regions that have more lands and natural resources”. Said Ali Hussain.
Furthermore, that is MTU’s Shain’s complaint. It is not only people from other islands that are on rent in Male’. The newly married couples from Male’ as well in general live in rented houses. Besides, the families who live in rented houses are not less from Male’. Even though the issue can be solved by decentralizing, it is not being implemented. Shain is also noting the issues Ali Hussain noted, those development projects being focused on Male’.
This debate can be lengthened. The truth is that there are issues in the market of Male’ house-rents. This issue is being erected in the time of every election.
Male' City
