Government Brings Changes To Regulations Governing Lease Extension For Non-Residential Plots

The Ministry of National Planning, Housing and Infrastructure has granted landholders leniencies in extending the lease period for non-residential plots. Previously, the regulations required landholders to seek permission from the Ministry before extending lease durations with a mandatory assessment conducted before the lease agreement expired. Afterwards, the Ministry holds the right to extend the duration by no more than 50% of the existing lease period.

The revised regulations published by the Ministry now require landholders to extend the lease duration after conducting an assessment. However, the assessment should clearly specify the benefits brought from the investments in the land plot to the local residents of the island or city and outline how it will contribute to the government's development plan during the leased period. Moreover, it should also include how the land plot has been used to date.

Additionally, the new regulations have revoked the rule allowing the leaseholder to receive only one extension. The landholder will now be required to state the maximum number of extensions it will provide to the leaseholder in the bid announcement. The ministry will also have the authority to adjust the lease rate in the extension agreement, based on the current market.