Housing Minister Dr. Abdulla Muthalib announced on Wednesday that the government is taking steps to modify current laws to clearly ban the leasing of Hiyaa flats.

The rental of social housing units—designated by the government for those most in need of affordable living spaces—at elevated prices has become a major issue of concern. There has been a significant rise in complaints about rentals in the crowded Hiyaa housing project and the Fahi Dhiriulhun Corporation (FDC) flats that began handover last year.

In a press conference on Wednesday, Minister Muthalib emphasized that the existing agreements for Hiyaa flats do not grant the government the legal power to reclaim units, even if they are under lease. However, he stressed that renting these apartments is explicitly forbidden, following the principles and policies governing social housing initiatives. As a result, he mentioned that changes in legislation are required to permit enforcement actions.

In October of last year, the Housing Development Corporation (HDC) and FDC revealed plans to pinpoint social housing units that were under lease. Minister Muthalib further explained that, while HDC may not consistently issue public notices, the corporation is diligently monitoring apartments used as housing for expatriates and is preparing to send notices to the appropriate units.

"The government is presently concentrating on two goals: initially, to stop actions that disturb residents in these regions, and subsequently, to modify the law to formally render renting unlawful," Muthalib stated.

He further warned that prompt action would be taken upon receiving any notifications about renting FDC apartments.

The transfer of 4,000 apartments built by FDC started last September. Soon after, a social media ad emerged promoting a three-bedroom apartment—listed for MVR 10,500—for rent at MVR 25,000, sparking significant public backlash.