The Ministry of Construction, Housing and Infrastructure has announced that financing approvals under the government’s Hiyaavehi Housing Scheme have exceeded MVR 1 billion, reflecting growing demand for home construction support across the Maldives.
Introduced as a targeted initiative to assist individuals facing financial barriers to building homes, the scheme opened for applications early last year, with loan disbursements to successful applicants beginning in December.
Hundreds Benefit from Housing Loans
State Minister Ahmed Nazim Mohamed said that loans have so far been approved for 820 applicants, with the total value surpassing the billion-rufiyaa mark. He added that approvals are expected to continue increasing as more applications are processed.
The financing programme is implemented in partnership with local financial institutions under Islamic finance principles, offering a 5 percent profit rate and a repayment period of up to 25 years.
Three-Tier Financing Structure
The Hiyaavehi programme is structured into three separate categories designed to address housing needs across different regions:
- Atoll Scheme: Offers financing of up to MVR 1 million through the Housing Development Finance Corporation (HDFC), with no equity requirement.
- Urban Centre Scheme: Provides up to MVR 3 million for residents in designated urban islands.
- Malé Area Scheme: Allows financing of up to MVR 6 million for individuals in the Greater Malé region, particularly those with vacant land, unfinished structures, or plans to redevelop smaller plots.
The Urban Centre and Malé Area schemes are facilitated through the Bank of Maldives (BML) and the Maldives Islamic Bank (MIB).
Supporting Housing Development Nationwide
Officials say the initiative is part of broader efforts to expand access to housing and support private landowners in completing construction projects. The government is also developing additional housing programmes in the Greater Malé region, including land allocation and family-focused housing initiatives.
Alongside the financing scheme, multiple housing projects are currently underway across the atolls. According to the ministry, several island-based developments are expected to be completed and handed over by mid-2028, including 800 housing units financed through BML.
Key Policy Priority
Authorities have emphasised that improving access to adequate housing remains a central policy objective under President Mohamed Muizzu’s administration. The Hiyaavehi scheme is seen as a key component in addressing long-standing housing challenges and supporting sustainable urban development.
