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Hiyaa Flats Lease Period Reduced, Leads to Rent Decrease

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BNN Correspondents
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Hiyaa Flats Lease Period Reduced, Leads to Rent Decrease

In a decision that has resonated with both elation and dissatisfaction, the lease period for Hiyaa flats in Hulhumale' Phase II has been cut from 27 years to 26 years and three months. This action comes in the wake of President Dr. Mohamed Muizzu's choice to deduct MVR 200,000 from the total lease payment, resulting in reduced monthly rent of MVR 3,984.21 over the next seven years, excluding the monthly maintenance fee.

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Details of The Discount

Urbanco's Managing Director Fazul Rasheed clarified that half of the discount, MVR 100,000, would be applied to the rent over seven years, with the remaining MVR 100,000 accounted for by the shortened lease period. While some tenants have expressed concerns that the rent reduction does not fully align with the MVR 200,000 discount, Fazul elaborated on the distribution of the reduction and underscored the relief it provides to tenants.

Previous Rent Alterations

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Before this change, tenants grappled with a monthly rent of MVR 8,500, inclusive of a maintenance fee. In May, the rent was previously lowered to MVR 6,300 for a seven-year span. The Housing Ministry, at that time, clarified that this adjustment did not represent a lease reduction but rather, an extension of the lease period from 25 to 27 years.

President Dr. Mohamed Muizzu's Commitment

President Dr. Mohamed Muizzu has repeatedly affirmed the government's commitment to reducing the rent of Hiyaa social housing flats, announcing a reduction of MVR 200,000 for each unit. He has also announced decisions to cap rent for social housing units in the atolls at MVR 3,333 per month and to halve the downpayment for Vinares flats. This commitment to rent reduction has been a key component of his electoral pledge, contributing to the decision to reduce the rent of housing units in all islands to MVR 3,330 per month, while retaining a repayment period of 20 years.

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