Housing Corp Amends Rental Fee of Non-Business Tenants, Softens Terms for Businesses

Housing Corp Amends Rental Fee of Non-Business Tenants, Softens Terms for Businesses

The Federal Housing Corporation has revised the rental fee levied on non-governmental organisations (NGO), embassies, government offices and civil society tenants. It has also decided that business tenants will not be required to pay the new rental fees immediately but instead have their rents rise progressively over three years, paying 35pc, 70pc and full rate in the first, second and third years.

The Corporation has signed off on a 58pc rental decrease on the NGOs, government offices and civil societies. The new alteration reduced a square meter rental fee to 140 Br. It has also altered the 92 dollars a square meter fee imposed on embassies to 50 dollars.

"We've amended as these organisations don't generate incomes," says Reshad Kemal, CEO of the Corporation, during a media briefing he gave at his office today.

The Corporation previously announced an average rental fee spike of 2,090pc on December 18, 2018, a first in the Corporation's 43 years. The rental fee amendment was made on 6,128 commercial units.

The Corporation has the new requirement compelling tenants to pay three months worth of rental fees up front.

"If the tenants don't agree with the new amendments," said Reshad, "we'll transfer the units to those who are interested through a bidding process."

Hence, even after the announcement over 500 tenants were voicing their grievances at the gate of the Corporation until midday.

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