Bank of Maldives (BML) has signed an agreement with the Ministry of Construction, Housing and Infrastructure to obtain land in Hulhumalé Phase I and II and Vilimalé for the development of 3,000 housing units under the Inclusive National Affordable Housing Scheme.

The agreement was signed by Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib on behalf of the Government, while Hassan Shaam, Managing Director of BML Affordable Home Leasing Pvt Ltd, signed on behalf of the bank’s subsidiary established to implement the project.

Under the plan, 300 housing units will be developed in Vilimalé, while 2,700 units will be built in Hulhumalé across Phases I and II. The development is part of the Inclusive National Affordable Housing Scheme, which was approved by the Cabinet last month to improve access to affordable housing nationwide. The scheme allows housing units to be developed with the involvement of financial institutions, enabling residents to acquire homes through a lease-to-own model.

Following new MMA regulations, all commercial banks must allocate 10 to 15 per cent of their loan portfolios to the scheme. In compliance, BML has formed a fully owned subsidiary, BML Affordable Home Leasing Pvt Ltd, to finance, develop and lease out housing units under this programme.

Speaking at the ceremony, BML CEO and Managing Director Mohamed Shareef said the national bank took the lead in creating the subsidiary after MMA mandated all banks to participate. He said the new approach would reduce land, development and financing costs, which in turn would allow rental prices under the lease-to-own model to be significantly lower.