Housing Minister Dr. Abdulla Muthalib states Bank of Maldives (BML)’s subsidiary, BML Affordable Home Leasing Pvt Ltd, was allocated land for the development of 3,000 affordable housing units at no-cost.
BML established the fully-owned subsidiary company for housing, BML Affordable Home Leasing Pvt Ltd, in line with the new regulation formed by central bank, Maldives Monetary Authority (MMA), following the cabinet’s decision to launch the Inclusive National Housing Affordability and Accessibility Project, aimed at enhancing access to affordable housing. The initiative includes developing housing units in partnership with financial institutions and making them available to the public through a lease-to-own scheme.
To boost home ownership, the MMA’s new regulations require all commercial banks in the Maldives to dedicate 10 percent to 15 percent of their total loan portfolios to the Inclusive National Affordable Housing (INAH) Scheme.
BML’s subsidiary signed an agreement with the Ministry of Construction, Housing and Infrastructure on Thursday to secure land in Hulhumale’ Phase I, Hulhumale’ Phase II, and Vilimale’, for the development of 3,000 housing units under the INAH scheme. Under this agreement, the company will develop 300 housing units in Vilimale’ and 2,700 housing units in Hulhumale’.
Speaking during the agreement signing ceremony, Minister Muthalib said all families have the right to housing, adding that the current administration is working ensuring housing for all at affordable prices.
He explained that the administration had taken measures to ensure housing units developed by BML’s subsidiary will be issued to the public at affordable prices.
“To ensure they are affordable, the government is allocating land for the bank without the bank incurring any additional costs. The cost will be borne by the government. By the will of Almighty, this will ensure that the prices of these units is relatively the same as the units currently being issued,” he said.
Minister Muthalib added that the government would carry out similar projects targeted towards various brackets.
Speaking during the ceremony, BML’s CEO, Managing Director the housing units will be financed by the Bank and constructed through qualified and experienced developers, under a lease-to-own model for first-time homeowners.
“The Bank will carry out this project so that individuals can become homeowners through a structured and affordable process. Residents can lease the property while making monthly payments, and upon the completion of these payments, the ownership of the property will be transferred to the resident,” he added.
It is an electoral pledge of President Dr. Mohamed Muizzu to provide ‘first home’ to Male’ natives and residents over the age of 18 who do not have their own housing.