Govt working to introduce equity financing for home construction, says president
President Muizzu said the government has already introduced a number of financing mechanisms to support housing projects.
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President Dr Mohamed Muizzu has announced that the government is working to introduce an equity financing scheme to help people build homes on their own land.
Speaking at a press conference at the President's Office on Monday, the President said the initiative is intended to help prospective homeowners meet the financial requirements needed to obtain bank loans for construction.
Under current lending practices, applicants are generally required to contribute around 20 per cent of a project's cost before banks approve financing.
The President made the remarks in response to a question on whether the administration's housing pledges could be delivered within its current term.
"God willing, they will be fulfilled," he said.
President Muizzu said the government has already introduced a number of financing mechanisms to support housing projects.
He noted that affordable housing loans for landowners and flat recipients were made available through banks last year and said the programme would be reopened this year.
The government is also working to expand the Housing Trust Fund, he said.
"For example, we are working to expand the fund further. Using the available funds this year, we will try to arrange a mechanism to provide equity financing. Once equity finance is provided, citizens will meet the baseline criteria to access bank loans for constructing buildings on their land plots," the President said.
He said the scheme would make it easier for more people to qualify for bank financing.
President Muizzu also provided an update on housing projects across the country.
According to the President:
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Housing projects on 13 islands were contracted late last year and are ready to begin.
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Funding for those projects has already been secured.
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Construction of housing projects in the Greater Malé area will begin next month.
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Housing projects that had previously stalled have resumed.
The President said the administration aims to complete and hand over housing projects within a single presidential term.
"We are aiming to achieve something that has not been done during any previous administration. To my knowledge, no past leader has managed to completely finish a housing project and move residents into those flats entirely within their single term," he said.
He added that a large proportion of the projects are expected to be completed by the middle of 2028, while some developments will be completed earlier.
