Real Estate Bill Will Empower Private Sector and Secure Benefits for Government and People, Says Minister Muththalib

The purpose of the Real Estate Business Bill is to empower private businesses in the sector and secure benefits for both the government and the people, Minister of Construction and Infrastructure Dr. Abdulla Muththalib has said. He made the remarks while answering a question at the Ahaa forum, held jointly by the President's Office and PSM to provide information on the work of state ministries. According to the Minister, the bill currently before the People's Majlis resolves existing difficulties in the sector and provides legal solutions to problems that arise. Once it becomes law, an authority named the Property Regulatory Authority will be established under the Ministry of Construction. Minister Muththalib said the bill, which covers many detailed and technical matters, represents a year and a half of work. He said some projects in the real estate sector have been run in ways that cause losses to the people, citing the Sealife and Cape Park projects as examples, and noted that the state also had to pay compensation to those parties. He added that many millions of rufiyaa still have to be paid as compensation. Under the new law, every project must be registered before it can be run. "This bill will state very clearly, developers having to register, and if selling off-plan, the manner in which it must be sold, and if taking money from buyers, keeping the money in an escrow account, and according to the amount of construction being done, the authority will look and release the money," the Minister said. Beyond real estate projects, the Minister said security can also be ensured for landowners when private parties undertake house building and other matters through various parties. He said legal security will be ensured for both the landowner and the party entrusted with developing the land. Under the law, when development of a piece of land or part of a building is entrusted, the lease holder registration title will be issued by the Property Authority for the period stated in the agreement, allowing the developing party to connect basic services without separate permission from the homeowner. The Minister also said those who received plots under the Binveriya scheme can be facilitated in running a real estate project by combining plots. "Now in Hulhumalé, a person who has been given [land] under the Binveriya scheme may want to develop his own plot and use it. However, even if many plots are not developed individually, we are granting permission to combine and develop those plots, meaning even if it is an apartment complex, opening the opportunity to develop in that manner as well. There is no more land in the Malé area now, so when that land is not there, we are compelled to develop the real estate sector, and also find ways to utilize the existing land in the best possible way," he said. Minister Muththalib said the bill also addresses the problem of not obtaining registration in real estate projects. While such cases previously had to go to the court stage to be resolved, the Property Authority will now arrange the issuance of registrations, giving financial institutions such as banks greater certainty. When the bill becomes law, the hope is that while the government provides housing, the role of the private sector will be expanded and the Maldivian real estate sector will become an industry that benefits the government and the people and brings further progress to housing, the Minister said.