Housing Minister Dr. Abdullah Muthalib said on Sunday that the government plans to reduce rents for social housing units by targeting low‑income families, rather than applying reductions across the board.
Since taking office, President Dr. Mohamed Muizzu has on several occasions lowered the down payment and rent of social housing units built under previous administrations. The frequent changes have drawn criticism, with some accusing the government of inconsistency.
More recently, the government waived penalties for long‑overdue rent payments, a move that also sparked criticism from those who have consistently paid on time.
When asked by Sun why the government continues to reduce rents, Muthalib said the public regularly raises concerns about rising housing costs. He noted that rent reductions in the Maldives have traditionally been “blanket” measures applied equally to all recipients, which he argued is not the most effective approach.
“It’s a bit difficult to target and subsidize those people, so we’re blanketing them. There are going to be among them the most undeserving people,” he said.
He added that while blanket reductions are not ideal, they are currently the most practical option.
An aerial view of Male' City: The Maldivian capital has a land per capita of a tile's width. (Photo/Maps Land)
Muthalib said that when the current administration took office, a significant number of tenants were already not paying rent. The reasons varied, he said, with some claiming they stopped paying after the previous government distributed free land in the Male' area.
Many tenants had accumulated large penalty fees over years of non‑payment. The government decided to waive these penalties to encourage people to resume payments, he said.
“There is a huge debt. There are obstacles to paying the penalty. So it is difficult for the government to get the money. We believed that if we waive the penalty and give an incentive to start paying rent, the government will start getting money.”
The Housing Development Corporation (HDC) faces major financial losses due to unpaid rent, making it difficult to service the large loans taken to build the housing units.