Abu Dhabi’s real estate sector has achieved a significant milestone with the first official registration of a mortgage on an off-plan property. This landmark development introduces a crucial new financing pathway for buyers in the capital, particularly those who have paid at least 50 percent of an off-plan unit’s purchase price prior to its handover. The pioneering transaction was facilitated by Aldar Properties in collaboration with Abu Dhabi Commercial Bank (ADCB), operating under a new framework established by the Abu Dhabi Real Estate Centre (ADREC).
The newly introduced framework by ADREC empowers buyers who have completed 50 percent of an eligible off-plan unit’s value to secure a mortgage for the outstanding amount before construction reaches completion. This mechanism allows financial institutions to fund subsequent instalments during the construction phase and cover the final payment due upon the property’s handover. This offers increased flexibility for purchasers, enabling earlier financial commitment and mitigating some of the traditional payment challenges associated with off-plan acquisitions.
The introduction of this mortgage option is particularly timely, aligning with Abu Dhabi’s expanding off-plan market. Developers are increasingly relying on pre-completion sales to underpin construction funding, making robust financing solutions crucial for market liquidity and growth. For buyers, the framework provides an opportunity to lock in financing terms earlier, offering greater certainty in their investment. Simultaneously, it furnishes banks with a clearer legal position regarding properties before they are formally transferred to buyers, thereby streamlining the lending process for this property segment.
A consortium of prominent financial institutions is actively participating in this initiative. These include Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic, and First Abu Dhabi Bank. This broad participation ensures a competitive and accessible lending landscape for potential off-plan investors.
Prospective buyers can conveniently access this new service. Aldar customers are able to utilise the Live Aldar app to request a callback from the Home Finance by Aldar team, facilitating a direct channel for enquiries and application processing. This integration of digital platforms aims to simplify and accelerate the financing journey for individuals investing in Abu Dhabi’s dynamic off-plan residential projects, reflecting a commitment to enhancing buyer confidence and fostering sustained growth within the market.
