Abu Dhabi’s real estate market anticipates a significant boost in investor confidence and transactional activity following the introduction of a new off-plan mortgage framework. This regulation is designed to provide greater clarity and support for both buyers and developers within the emirate’s rapidly expanding property sector. A key feature of the framework allows purchasers to secure mortgage financing against their property during the construction phase, specifically once 50 per cent of the home’s purchase price has been paid.
Historically, buyers typically awaited project completion before arranging financing. This new approach alleviates financial pressure during later construction stages and broadens access to a larger pool of qualified purchasers for developers. The Abu Dhabi Real Estate Centre (ADREC) has confirmed its capability to register mortgages against off-plan units since March 2026, actively engaging with relevant developers and financial institutions to facilitate implementation.
Off-plan transactions have recently dominated Abu Dhabi’s residential sales landscape, accounting for a substantial 89 per cent of the total Dh70.4 billion sales value recorded in the first half of the year. This data underscores robust demand for new developments within the emirate. The introduction of this framework coincides with this strong market momentum.
Aldar Properties became the first developer to successfully complete an off-plan mortgage financing arrangement under the new guidelines, with Abu Dhabi Commercial Bank acting as the lender. This early adoption signals the practical application and benefits of the framework within the industry.
According to Andrew Laver, director of Cavendish Maxwell in Abu Dhabi, the framework offers “greater clarity and protection for buyers, lenders and developers,” while also improving investor confidence. He added that it enhances transparency by enabling mortgage interests to be officially recorded in the Initial Real Estate Register even before a project reaches completion. While initial restrictions, such as the 50 per cent payment threshold and eligibility criteria for developers and financial institutions, are in place, market evolution is expected to expand its availability over time. This policy move is anticipated to increase overall property transactions and diversify potential source markets for investment in Abu Dhabi.