Off-plan buyers who pay 50% can now access mortgages before handover.
Abu Dhabi: Abu Dhabi has registered its first mortgage on an off-plan property, opening a new financing option for buyers who have paid at least 50 per cent of the purchase price before handover.
The transaction was completed by Aldar Properties in partnership with Abu Dhabi Commercial Bank (ADCB), under a framework launched by the Abu Dhabi Real Estate Centre (ADREC).
The framework allows buyers who have paid 50 per cent of the value of an eligible off-plan property to secure a mortgage for the remaining amount before construction is completed. Banks can finance outstanding instalments during construction as well as the final payment due at handover.
The move could give buyers greater certainty over borrowing costs at an earlier stage and reduce the amount of cash they need to commit while the property is under construction. It also gives lenders a formal interest in the property before completion, potentially strengthening their protections in the event of a dispute.
How does it work?
Under the new system, the financing bank can be recorded on the mortgage registration certificate before the property is handed over. ADREC said mortgage interests in eligible units can be registered in the Initial Real Estate Register, creating a formal record for buyers, developers and lenders.
“By enabling mortgage interests in eligible off-plan real estate units to be recorded in the Initial Real Estate Register, the service strengthens transparency and provides greater clarity and protection for buyers, developers and financial institutions,” said Ghazi Saeed Alateibi, executive director of the Real Estate Transaction Sector at ADREC.
The service is available across the market to participating institutions that meet the relevant requirements, ADREC said.
According to Aldar, the 50 per cent payment threshold is aligned with UAE Central Bank regulations.
“The new off-plan mortgage framework introduced by ADREC marks an important step towards enhancing transparency and accessibility in the real estate market,” said Faisal Falaknaz, Aldar’s chief financial and sustainability officer.
“We are proud to have worked with ADREC and ADCB to complete the first transaction, turning the framework into greater financing flexibility for homebuyers,” he added.
Home finance
Aldar is offering the new financing option through Home Finance by Aldar, its in-house mortgage advisory service. The service is free for customers and provides access to mortgage options from more than six conventional and Islamic banks.
Participating lenders listed by Aldar include ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank.
Customers can access the service through the Live Aldar app and request a callback from the Home Finance by Aldar team.
The first registration comes as Abu Dhabi’s off-plan property market continues to expand, with developers increasingly relying on pre-completion sales to support construction financing. The new framework could enable eligible buyers to secure mortgages earlier while giving banks a clearer legal interest in properties before handover.
