The Kaafu Huraa Island Council has amended its regulations governing the commercial use of vacant land for food stalls and outdoor seating, resulting in a MVR 6,000 reduction in monthly rent for several leased plots.
Under the revised policy introduced by the PNC-majority council, plots utilized for food services involving cooking and the installation of stoves will now be charged a monthly land rent of MVR 3 per square foot.
The previous regulation mandated a monthly rental rate of MVR 7 per square foot for plots used for similar cooking and catering purposes.
According to information obtained by Adhadhu, the council has leased seven plots of 1,500 square feet each for these activities. While tenants previously paid MVR 10,500 per month for these plots, the policy change reduces the monthly rent to MVR 4,500.
Furthermore, the new council’s amendments extend the maximum permit duration for these land uses to five years. The revised rules also allow for a two-year extension without the requirement for a new public announcement.
Previously, such plots in Huraa were leased on an annual basis. Extensions were granted at the end of each year based on specific criteria, with a mandatory rent increase of no less than 20 Laari per square foot for each additional year.
The decision by the PNC-led council to slash rents by MVR 6,000 for cafe and restaurant plots has sparked public criticism in Huraa, an island with a thriving local tourism industry.
