The practical work on five affordable housing projects to be implemented by ‘BML Affordable Home Leasing’, a subsidiary company of Bank of Maldives (BML), officially began today. The work was inaugurated by Housing Minister Dr. Abdullah Muththalib, BML Chairman Ahmed Ali Habeeb, and the bank’s CEO and Managing Director Mohamed Shareef at a special ceremony held in Hulhumale today.

These are important projects being carried out by BML’s subsidiary company, which was specifically established to achieve the objectives of the Inclusive National Affordable Housing Scheme formulated by the Maldives Monetary Authority (MMA). According to the bank, these projects have been awarded to selected local and foreign companies after an evaluation process conducted in accordance with established governance and risk standards.

The local companies awarded work include Amin Construction, FW Construction, and Rasheed Carpentry and Construction (RCC). Additionally, work has been awarded to two Chinese companies – Beijing Urban Construction Group (BUCG) and China Machinery Engineering Corporation (CMEC). BUCG has been assigned to develop 1,117 housing units on four plots in Hulhumale Zone 2, while CMEC has been assigned to build 1,224 affordable housing units in Hulhumale.

According to BML, upon completion of these projects, over 3,200 housing units will be established in Hulhumale’s Phase 1 and Phase 3, as well as in Vilimale. These flats are planned to be released under a “lease to own” model at relatively low rent – allowing residents to own the property after a certain period of living on rent. The bank notes this will provide significant relief to the demand for housing in the Maldives.

Under the National Housing Affordability and Accessibility Project decided by the Cabinet last October, MMA has formulated special regulations to implement the policy of providing housing to the public in collaboration with financial institutions. Under these regulations, every bank in the Maldives must allocate between 10 and 15 percent of their loan portfolio to the government’s housing scheme. Under the government’s housing scheme, 7,900 flats and 15,000 plots are scheduled to be released, with flats being released through affordable purchase and lease-to-own models.