Urbanco, the prominent housing developer, is set to benefit from an allocation of MVR 177.4 million in the state budget for the upcoming fiscal year. This significant allocation addresses cash flow concerns by reducing the rent for Hiyaa flats constructed in Hulhumale’ Phase II.
As outlined in the state budget 2024, the housing subsidy has been earmarked specifically to alleviate Urbanco’s financial pressures by implementing a five-year initiative that reduces the rent for Hiyaa flats.
The budget report highlights that this housing subsidy is a one-off arrangement planned for the next year. The decision aligns with anticipating a medium-term increase in the company’s revenue, which is expected to improve its cash flow management naturally.
Earlier this year, Urbanco took a proactive step to ease the financial burden on tenants residing in Hiyaa flats by reducing the rent and maintenance fee from MVR 8,500 to MVR 6,300. This adjustment significantly improved the affordability of housing for tenants.
Additionally, due to the relaxation of lease terms, the loan tenure for Hiyaa flats has been extended from 25 years to 27 years, offering further financial flexibility to tenants.