A special scheme of MVR 750 million has been included in next year's budget to provide equity financing for individuals seeking to build homes on private land or purchase new flats.
This newly launched equity assistance program was introduced by the government to support those facing difficulties in paying the down payment for the Hiyaavehi Financing Scheme. Under this initiative, individuals can receive up to MVR 200,000 in equity assistance. This amount is only repayable if the house or building is sold within a 20-year period.
Presenting the budget to the People’s Majlis, Finance Minister Hassan Zareer said that housing remains the greatest concern for Maldivians. He noted that this equity scheme, set to commence next year, would pave the way for many families to realise their dream of homeownership.
"It is a current reality that there are citizens who own land but lack the financial capacity to build a home on it. So, within the total housing allocation in next year's budget, MVR 750 million has been earmarked to be issued as equity for those seeking special loans to purchase or construct new homes," Zareer said.
The government has signed agreements with the Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance Leasing Company (MFLC) to implement this scheme.
In addition to this scheme, MVR 3 billion has been allocated for housing projects in next year's budget. Zareer also noted that funds have been budgeted to provide essential services, such as water and sewerage, to vacant plots on the islands.
Ensuring housing for all Maldivians within this term is President Mohamed Muizzu’s biggest pledge. However, few projects have physically commenced over the past year, and budget figures suggest a slowdown in progress.
Looking at state expenditure on housing, the MVR 3.26 billion spent in 2024 dropped to MVR 2.1 billion last year—a year the government characterised as a "housing budget."
This figure has been further reduced to MVR 1.6 billion in the current budget, marking the lowest allocation for housing in the past four years.
Due to the lack of detailed Public Sector Investment Program (PSIP) data, it is difficult to confirm whether these figures apply exclusively to housing construction, as the housing budget typically includes land reclamation costs as well.
