Gedhoruveriya Flats to Be Offered Through 25-Year Rent-to-Own Scheme

The Maldives government has announced that 4,000 flats under the Gedhoruveriya housing scheme will be distributed through a 25-year Rent-to-Own arrangement. This initiative enables residents to gain full ownership of their homes after completing rental or installment payments over a set period, easing access to long-term housing for many citizens.

Making Homeownership More Accessible

Minister of Construction, Housing and Infrastructure, Dr. Abdulla Muththalib, confirmed the details during an interview on the Ahaashey Bunaanan program on Dhivehi Raajjeyge Adu. He explained that the Rent-to-Own structure was introduced due to growing difficulties in collecting rent from state-issued housing.

“Housing becomes more manageable when issued as rentals,” said Dr. Muththalib. “It allows the government more flexibility in taking necessary action when needed.”

A Legal Framework to Strengthen Housing Management

Dr. Muththalib highlighted that the pending Housing Bill, currently under review in Parliament, is expected to bring meaningful reforms. One of the key features of the bill is the ability to collect rent without resorting to court proceedings—an issue that has long hindered enforcement.

The proposed bill also opens the door to alternative housing delivery models, such as bank-backed mortgage financing with government concessions, or structured Rent-to-Own terms with legal ownership granted at the end of the term.

“The Gedhoruveriya flats will follow this new model. Residents will pay over a fixed term, and after that, the flats will be registered in their names,” the minister added.

Tackling the Burden of Unpaid Rent

A major concern driving these reforms is the mounting volume of unpaid rent in state-run housing projects. According to current data, outstanding rent has reached MVR 700 million. In response, the Housing Development Corporation (HDC) has begun issuing formal notices to defaulters and has implemented a monitoring system to improve compliance.

The consequences of non-payment extend far beyond missed rent collections. Dr. Muththalib emphasized that state-backed housing is funded through loans which must be repaid via escrow accounts. Banks involved in these financing arrangements are closely monitoring payment behavior, which in turn affects future lending and project approvals.

“When rent goes unpaid, banks lose confidence. This jeopardizes the government’s ability to secure funding for future housing projects,” he explained. “It’s not just about lost revenue—it’s about lost opportunity for thousands of people waiting for housing.”

According to HDC, there are currently 8,511 housing units under its management in Hulhumale’. Yet, only 3,219 flats are paying rent consistently. A staggering 5,099 units are in default, revealing a serious gap in the sustainability of social housing programs.