2027 Budget: MVR 3 Billion Earmarked for Housing

Finance Minister Hassan Zareer announced that MVR 3 billion will be earmarked for housing in the MVR 59.7 billion budget proposed for next year and submitted to the People's Majlis today. While presenting the budget, Zareer stated that providing strong and permanent solutions to the social hardships faced by citizens is a government policy. The minister highlighted that the most significant concern of Maldivian citizens is the difficulty in housing, and under the direct supervision of President Mohamed Muizzu, housing projects across the country's regions will be strengthened to provide a permanent solution to this hardship. "This includes MVR 3 billion earmarked in the 2027 budget. This project will bring about a necessary solution to alleviate congestion in the Malé region," the minister said. Zareer noted that there are citizens who own land but lack the financial capacity to build homes on that land. The housing allocation includes MVR 750 million to release equity funds for special loan schemes for those needing to purchase and construct new homes. "This will pave the way for realizing the dream of home ownership for many families," the Finance Minister said. To help citizens achieve home ownership, the Housing and Infrastructure Ministry has signed an MoU with four financial institutions to implement the 'Help to Build' and 'Help to Buy' equity assistance schemes under the government's introduced 'National Home Ownership Programme'. Under Help to Build, the government will assist residents without adequate living spaces in obtaining bank loans to construct homes. This part targets islands where people from Malé and the atolls reside (excluding Hulhumalé, Vilimalé, Ghulhifushi, and Giravaru). The government will provide free assistance up to MVR 200,000 as equity funds for a MVR 1 million loan. In cases where multiple owners wish to jointly construct on family land, assistance will be provided up to MVR 200,000 per head as equity funds for loans up to MVR 1 million; this mechanism applies only to lands in Malé. Even if a loan exceeding MVR 1 million is taken after assessment, the maximum assistance amount provided by the government is MVR 200,000 per head. This is non-refundable assistance, but if the property is sold within 20 years, the funds must be refunded to the state. Under Help to Buy, assistance up to MVR 250,000 will be provided to purchase affordable housing units priced at MVR 1.5 million developed by developers through PPP models (a scheme run separately from the 2024 'Hiyaa' scheme). Assistance up to MVR 250,000 will also be released for parties purchasing units sold at market price according to real estate rules. This assistance money will be paid directly to the developer through the financial institution; this amount will be deducted from the total price payable by the buyer.