HDC applies MVR 200,000 refund and cuts Hiyaa rent days before council elections

The Housing Development Corporation (HDC) has reduced the outstanding two‑year rent for Hiyaa flats in Hulhumale' Phase II, just days before the local council and Women’s Development Committee (WDC) elections and the referendum scheduled for Saturday.

The reduction is part of President Dr. Mohamed Muizzu’s pledge to refund the finishing costs incurred by Hiyaa flat owners. In a letter sent to residents on Thursday, HDC detailed how the government will implement the refund.

According to the letter, the outstanding rent will be deducted from the MVR 200,000 finishing‑cost discount allocated for each flat starting next Wednesday. If the deduction fully covers the pending rent, residents will not be required to pay the monthly MVR 5,300 rent until the discounted amount is exhausted. However, management fees will continue to apply. Rent payments will resume on May 1.

HDC said the monthly rent will return to MVR 5,300 once the MVR 200,000 discount has been fully applied, and that amendments to the tenancy agreements will be made soon.

The rent for the 7,000 Hiyaa flats was originally set at MVR 8,500 during former President Ibrahim Mohamed Solih’s administration. It was later reduced to MVR 5,300 in the presidential election year, and further lowered to MVR 3,984.21 after President Muizzu took office.

The current administration has also waived Hiyaa penalties, reduced rents for Phase I flats by up to 20 percent, halved the down payment for the Winners’ Flats, and lowered their monthly rent to MVR 12,000. These concessions have previously raised questions about long‑term financial sustainability.

Some have also expressed concern about major housing concessions being announced close to election day. Local council and WDC elections will be held on Saturday, alongside a referendum on whether to hold presidential and parliamentary elections on the same day in the future.