Govt to Allow Commercial Use of Social Housing Land in Hulhumale’ Phase 2 and 3

In a move aimed at expanding public services and stimulating economic activity, Housing Minister Dr Abdulla Muththalib announced that the social‑housing plots reserved for Hulhumale’ Phase 2 and Phase 3 will now be permitted for commercial development.

Speaking at a ceremony to mark the completion of additional elevators in the Hiyaa towers, the Minister said the change is necessary because the land currently owned by the Housing Development Corporation (HDC) alone cannot meet the growing needs of residents. 

“The HDC’s land holdings have been reduced after the previous administration re‑allocated more than 2,000 plots under the ‘binveriyaa’ scheme,” Dr Muththalib explained. 

“In the current situation, we must recognise that not every service‑providing facility needs to be built on HDC‑owned land.”

The Minister emphasised that private investors should be allowed to develop the allocated plots for commercial purposes such as preschools, clinics and shopping complexes. 

“We have to develop the land allocated to the people on a commercial basis and provide services to those who benefit from the land,” he said, adding that the existing zoning that locks the land for residential use only is “very restrictive.”

“This would not only benefit the land owners but also expand the city’s economy, create jobs and provide much‑needed services.”

The Ministry plans to work with the private sector to ensure that the more than 2,000 public plots are utilised efficiently, delivering prosperity and convenience to Hulhumale’ residents.

The previous government had earmarked land in Hulhumale’ Phases 2 and 3, as well as in Gulhifalhu and Giraavarufalhu, exclusively for residential purposes and prohibited any commercial use. The new policy marks a significant departure from that stance.