Rent relief has been introduced to compensate Hiyaa flat residents for the cost of completing unfinished interiors, Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib has said.

He made the remarks in the People’s Majlis in response to a question from North Galolhu MP Mohamed Ibrahim on the decision to grant two years of rent relief to tenants who have been paying rent regularly.

Providing details, the Minister said the flats were initially planned to be rented at MVR 5,300 during the previous administration, but were later leased at MVR 7,500, along with an additional MVR 1,000 charged as a maintenance fee.

Minister Dr Muththalib said plans had been in place at the time to secure financing to complete interior works. However, the units were handed over without those works being completed, resulting in residents spending up to MVR 200,000 from their own funds, often through bank loans, to finish the interiors.

“Handing over flats without completing interior works is not a responsibility that should fall on residents,” the Minister said. “This Government has introduced a mechanism to compensate those who incurred such expenses.”

He said a direct lump sum payment was not feasible, and that the Government had instead opted to provide rent relief to eligible tenants until the amount they spent, capped at MVR 200,000, is offset.

The Minister also clarified that the measure does not constitute a rent reduction, but is intended to ease the financial burden on affected residents.

He added that the pricing of flats developed by Fahi Dhiriulhun Corporation is determined based on loan repayment commitments, unit size and the level of subsidy provided.