The Maldives’ state-owned Housing Development Corporation (HDC) may have incurred losses exceeding MVR 15 billion through the allocation of land plots under the Binveriya housing scheme introduced during former President Ibrahim Mohamed Solih’s administration, according to a new report released by the Auditor General’s Office.
The audit examined land allocations made in Hulhumalé Phase 2 and Phase 3 and concluded that HDC forfeited substantial potential revenue by distributing plots below market value.
Audit Highlights Massive Estimated Revenue Loss
According to the report, HDC allocated a total of 2,841,400 square feet of land through the Binveriya scheme. Auditors estimated the value of the land using prevailing market prices and competitive bidding benchmarks.
The report stated that if the plots had instead been sold through competitive bidding at market rates, HDC could have generated between MVR 14.85 billion and MVR 15.93 billion in revenue.
The figures were calculated based on land prices observed in HDC land sales conducted between 2022 and 2024.
The findings raise fresh concerns over the long-term financial impact of large-scale housing and land distribution programs. Was enough consideration given to the financial burden placed on the state? The audit suggests the answer may be no.
Hulhumalé Phase 2 Beachside Plots Valued at Billions
One of the most valuable categories identified in the report involves beachside plots allocated in Hulhumalé Phase 2.
Auditors said 188 plots covering 347,600 square feet were distributed to 473 recipients under the Binveriya scheme. Because of their prime beachfront location, the report noted that these plots could command significantly higher market prices.
Based on current estimates, the land could have generated approximately MVR 2.5 billion if sold commercially.
In addition, another 521 plots in Hulhumalé Phase 2, totaling 909,250 square feet, were allocated to 1,166 individuals. The report estimates these properties could have brought in around MVR 4.9 billion at market value.
Phase 3 Allocations Account for Largest Share
The largest portion of the estimated losses stems from Hulhumalé Phase 3 allocations.
According to the audit, 669 plots spanning 1,584,550 square feet were distributed to 2,481 people under the Binveriya scheme.
If sold at prevailing market rates, those plots alone could have generated roughly MVR 8.4 billion in revenue for HDC.
Combined, the allocations across both phases represent one of the most significant estimated revenue losses highlighted in a recent state audit.
Concerns Over Financial Planning and State Spending
The Auditor General’s Office also questioned whether adequate financial studies were conducted before the scheme was implemented.
The report stated that allocating high-value land free of charge to more than 4,120 individuals could create significant pressure on public finances, especially considering the large-scale infrastructure and development costs already borne by HDC.
“It is apparent that the plots under the Binveriya scheme were allocated without conducting proper research into how it would affect state finances,” the audit report stated.
The audit further estimated that the state effectively spent around MVR 3.8 million per recipient under the scheme.
That amount is notably higher when compared with previous housing initiatives. According to the report, the cost exceeds the price of a flat under the Hiyaa Project scheme by 70 percent and is 63 percent higher than the cost of a housing unit provided under the Gedhoruveriya Scheme program.
Broader Debate Over Housing Policies
The findings are likely to intensify political and public debate surrounding housing policies and land distribution practices in the Maldives.
The Binveriya scheme was introduced as part of broader efforts to address housing challenges and land ownership issues. However, the latest audit places renewed focus on whether the economic costs of such programs were properly evaluated before implementation.
With Hulhumalé land values continuing to rise sharply, the report may also reignite discussions about transparency, state asset management, and the long-term sustainability of subsidized housing initiatives.
