Maldives President Dr. Mohamed Muizzu, on Monday, has said that the incumbent government is working towards facilitating equity financing to assist citizens with prospective home development plans.
Equity financing remains one of the most significant hurdles to obtaining housing loans.
Speaking a press conference held at the President’s Office, the Maldives head of state said that the Housing Trust Fund will be expanded, and efforts will be made to provide equity financing with the assistance of the said fund. He affirmed the government’s commitment to implement the solution within this year.
“Once equity finance is provided, individuals can approach banks to build their own land plots. This will bring great relief to many,” President Muizzu commented.
Banks issue housing loans after 20% of the total project cost is covered out-of-pocket as equity.
According to President Muizzu, housing projects across 13 islands in the country were awarded late last year. He added that preparations are now complete to begin practical work for these projects, and confirms securing the required fund.
Additionally, he said that the practical work for the planned projects in Malé region will commence sometime in August.
While highlighting resumption of all stalled projects at the time President Muizzu assumed office, he noted the plan is to move residents to the flats during his term.
“God willing, by mid-2028, majority of the work will be completed,” he affirmed.
In order to fulfill the current administration’s housing pledge, the government has been working around various financial models. Moreover, some of the models are already functional. The new equity financing solution is one among the several such efforts pushed by this government.