President Ibrahim Mohamed Solih, the candidate for the Maldivian Democratic Party (MDP) and its coalition, has announced a pledge to establish a bank aimed at providing housing finance if he is re-elected for the next term.
The main goal of this proposed housing finance bank pledge, made during the launch of the first part of the MDP manifesto, is to address the issue of high housing prices.
According to the manifesto, the bank would offer special interest rates and equity requirements for first times loans aimed at constructing houses for residential use.
The interest rate for these loans would be capped at 6 percent, and the equity requirement would be set at 10 percent. Currently, the prevailing interest rate is 10 percent, and the equity requirement is 20 percent.
The manifesto also outlines the government’s intention to regulate the real estate market and ensure the rights of individuals purchasing housing.
One of the significant challenges in the capital city, Male’, is the housing crisis, with prices soaring and impacting people’s spending power due to high rental costs.
Over the years, successive governments have initiated the construction of flats to address the housing shortage. However, the increasing population migrating to the capital has outpaced the supply, resulting in unmet demand. The current government has been working on the development of flats and has recently allocated lands to Male’ citizens as part of their efforts to tackle the housing issue.
The election is scheduled for September 9th, and the candidate of the opposition coalition is Dr. Mohamed Muizzu, the former Housing Minister and current mayor of the capital.