Ministry of National Planning, Housing and Infrastructure has decided to offer flats being developed by Fahi Dhiriulhun Corporation Limited (FDC) to 50 individuals who bought apartments in Arabiyya and Gaakoshi at higher interest rates.
The construction of 90 apartments on the Arabiyya land plot and 198 apartments on the Gaakoshi land plot began during President Mohamed Nasheed's administration under the Veshi Fahi Male' programme, aimed at providing housing with an extended repayment period. However, the prices were increased during President Abdulla Yameen's administration, compelling recipients of the flats to resort to bank loans with higher interest rates to make purchases.
Speaking to PSM News, Minister of State Akram Kamaluddeen said the government has held discussions with banks on alleviating the financial challenges faced by tenants of Arabiyya and Gaakoshi flats by reducing the interest rates. He, however, said that the banks did not come to an agreement and therefore President Ibrahim Mohamed Solih made the decision to offer flats under development by FDC in Hulhumale' to 50 tenants who took the loans. He added that all the tenants at Arabiyya and Gaakoshi flats have the opportunity to apply for land plots under the administration's new housing programme.
Meanwhile, State Minister Akram has recently accused the previous government of intentionally raising the rent of the Gaakoshi and Arabiyya flats. In 2010, President Nasheed's administration set a monthly rent of USD454 for the flats, along with a USD1,800 down payment and a 20-year repayment period. However, President Yameen's subsequent administration resumed the construction of the flats after paying the contractor an additional USD18 million through the Housing Development Corporation Limited (HDC). The rise in the cost of the project also increased the price of the flats.
In 2016, the government decided to sell the flats with a lump-sum payment of USD130,000. The flats were also placed under the jurisdiction of HDC in 2017. It resulted in tenants being directed to pay USD130,000 within five years, and those who could not meet the requirement were advised to sell the flats.