State Yet to Receive Over MVR 700 Million in Rent from Social Housing Flats, Says Minister

Housing Minister Dr. Abdullah Muttalib has revealed that the state is yet to receive over MVR 728 million in rent from flats developed under various social housing projects.

Speaking on a program broadcast by state media, Minister Muttalib noted that these projects are typically proposed as financially viable based on expected rental income, which is intended to be used for loan repayments tied to the development of these housing units. However, the widespread non-payment of rent is now posing serious financial challenges.

“If that money isn't received, the opportunity to build more housing units through additional state loans becomes very limited. This is a major challenge we’re facing now,” the Minister said, highlighting that future housing initiatives are at risk due to reduced confidence from lenders.

The Minister explained that rental income is funnelled into an escrow account and that banks are fully aware of the amounts received. He also emphasised that while the rent charged is minimal, continued non-payment undermines efforts to provide housing access to other eligible citizens.