BML to develop 3,000 flats under new affordable housing scheme
- Maldives
- Business
The Bank of Maldives (BML) on Thursday signed a land acquisition agreement with the Ministry of Housing to develop 3,000 housing units under the government’s new national housing initiative.
The Cabinet last month approved the launch of the Inclusive National Affordable Housing Scheme. Following this decision, the Maldives Monetary Authority (MMA) issued regulations to establish a fund to finance projects under the scheme.
According to the MMA’s rules:
The five-year fund will be used to assist non-homeowners, first-time homebuyers and applicants who meet additional eligibility requirements.
All commercial banks operating in the Maldives must contribute between 10% and 15% of their total loans and debt to the fund.
The MMA will announce the housing projects and conditions eligible for financing.
Financing provided from the fund will have a minimum term of 25 years, with shorter terms available upon request.
Thursday’s agreement covers land acquisition in Hulhumalé Phase 1, Hulhumalé Phase 2 and Vilimalé. The agreement was signed by Housing Minister Dr Abdulla Muththalib and Hassan Shaam, Managing Director of BML Affordable Home Leasing Pvt Ltd, a fully owned subsidiary created under the fund.
According to BML:
The bank will finance the development of 3,000 housing units.
Construction will be contracted to qualified companies in the Maldives and overseas, with expressions of interest already invited from several parties.
The units will be offered under a lease-to-own model for first-time homebuyers.
Buyers will be able to move into the units while paying monthly rent, eventually gaining full ownership.
Speaking at the signing ceremony, BML CEO and Managing Director Mohamed Shareef said the bank carries significant responsibility as the largest financial institution in the Maldives, with over 52% of the country’s loan market.
"We are proud to be the first bank in the country to begin work towards implementing this initiative with the signing of today’s agreement. This is a key step forward in fulfilling the requirements of the scheme and supporting the government’s commitment to providing affordable housing solutions for Maldivian families," he said.
"As always, the bank will ensure compliance with local regulatory requirements and follow international best practices to uphold shareholder and customer interests."
