Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib has said loans worth MVR 1 billion have been approved under the Hiyaavehi Financing Scheme to support people constructing homes on their own land.

Speaking at a press conference held at the President’s Office on Tuesday, Minister Dr Muththalib said the approved financing is expected to benefit around 850 individuals.

He said the scheme continues to receive additional proposals, with the financing programme structured to provide subsidised housing loans through banks.

“Up to now, loans worth MVR 1 billion have been approved for people to construct homes on their own land,” Minister Dr Muththalib said.

The Infrastructure Minister described housing as one of the most significant challenges faced by Maldivians, adding that the Government is pursuing multiple housing models aimed at expanding access to housing.

He said efforts are ongoing through various approaches, including housing finance schemes and construction projects, to address the issue.

The Minister also revealed that work is underway to introduce a second Hiyaavehi Financing Scheme. He noted that the Government is exploring alternative and more innovative financing models amid challenges in securing external financing for housing projects.

Minister Dr Muththalib said the proposed models would involve collaboration with contractors and the private sector in housing development efforts.

He further expressed confidence that, despite economic pressures linked to the conflict in the Middle East, housing projects in the Maldives could still be delivered to a large number of people.