Housing Minister Abdullah Muthalib said on Sunday that the government cannot prohibit the renting of social housing flats unless the law is amended, a process that is now underway.
Responding to a question from a journalist at a press conference held at the President’s Office, Muthalib said the current agreements for government housing schemes do not explicitly ban subletting.
“There is direct lease, especially in Hiyaa flats. The agreement does not prohibit direct lease, it says nothing illegal,” he said.
Muthalib said the government plans to introduce a Housing Bill to Parliament, and once it is passed, renting out social housing flats will be prohibited.
Addressing concerns about misuse of the flats, Muthalib said some restaurants and businesses have built quarters for foreign workers inside the units. While the government is working to vacate such properties, he said the existing agreements make it difficult to take action.
Housing Minister Dr. Abdullah Muthalib speaks at a press conference held at the President's Office on December 28, 2025. (Photo/President's Office)
He added that the administration’s policy is to amend the law to prevent such practices in the future.
Hiyaa flats have previously been rented out at high prices, drawing public criticism. There was also backlash over the 4,000‑flat project under the former MDP government, where recipients who had not yet received their units advertised them for rent at steep rates.
FDC itself advertised a three‑bedroom unit for MVR 10,500, and later for MVR 25,000.
Many people have raised concerns that the most deserving applicants may not receive flats under such circumstances. It is also common for units to be rented out without authorities checking whether the allocated owners actually reside there.
Both the Housing Development Corporation (HDC) and the Fahi Dhiriulhun Corporation (FDC) have said they will identify tenants living in the flats and take action where necessary.