New mortgage option opens for Abu Dhabi off-plan buyers with Aldar and ADCB deal

Abu Dhabi: Abu Dhabi has completed its first registration of a mortgage on an off-plan property, opening a new financing route for buyers who have paid at least half the purchase price before handover.

The transaction was completed by Aldar Properties 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 an eligible off-plan unit’s value to mortgage the outstanding amount before construction is complete. Banks can fund remaining instalments during construction and the final payment due at handover.

The move could give buyers earlier certainty over borrowing costs and reduce the need to tie up cash while a property is being built. It also gives lenders a formal interest in the property before completion, potentially strengthening protections in the event of a dispute.

How does it work?

Under the system, the financing bank can be recorded on the mortgage registration certificate before handover. ADREC said mortgage interests in eligible units can be entered 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.

The 50 per cent payment threshold is aligned with UAE Central Bank regulations, according to Aldar.

“The new off-plan mortgage framework introduced by ADREC marks an important step in further enhancing the transparency and accessibility of the 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, translating the framework into greater financing flexibility for homebuyers,” he added.

Home finance

Aldar is offering the financing route through Home Finance by Aldar, its in-house mortgage advisory service. The service is free to 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 call back from the Home Finance by Aldar team.

The first registration comes as Abu Dhabi’s off-plan market expands, with developers increasingly relying on pre-completion sales to fund construction. The new framework could allow eligible buyers to secure financing earlier, while giving banks a clearer legal position before properties are handed over.