Aldar has become the first developer in Abu Dhabi to complete mortgage financing on an off-plan property through a newly introduced framework from the Abu Dhabi Real Estate Centre (ADREC). The framework allows the financing bank to be officially listed on the mortgage registration certificate ahead of property handover, a first for the emirate’s real estate sector.
How the New Off-Plan Mortgage Framework Works
Under this system, buyers who have already paid 50 percent of a property’s purchase price become eligible to secure a mortgage against their off-plan unit. From that point, the bank takes over responsibility for funding the remaining installments as well as the final handover payment.
This structure offers several advantages for buyers:
- Locked-in financing terms well ahead of project completion
- Preserved liquidity throughout the construction period
- No need to arrange financing at handover, simplifying the final stages of the purchase
- More choice and flexibility around interest rates and mortgage terms, compared to traditional handover-stage financing
Aldar customers can also access support through Home Finance by Aldar, the developer’s in-house mortgage advisory service, which is available free of charge.
A First-of-Its-Kind Transaction for the Emirate
Aldar’s completed registration marks the first transaction of its kind in Abu Dhabi, with Abu Dhabi Commercial Bank (ADCB) acting as the financing bank for these initial deals. The arrangement complies with UAE Central Bank regulations, which require buyers to have paid at least 50 percent of a property’s value before qualifying for off-plan mortgage financing.
Strengthening Transparency in Abu Dhabi’s Real Estate Market
Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector, noted that this milestone demonstrates ADREC’s off-plan mortgage registration service functioning in a live market setting. He explained that recording mortgage interests for eligible off-plan units in the Initial Real Estate Register adds a layer of transparency and protection for buyers, developers, and financial institutions alike.
He further added that the service is open to all participating financial institutions that meet the necessary criteria, reinforcing Abu Dhabi’s push toward a more secure and well-regulated off-plan property market.
The Takeaway
By completing the first transaction under ADREC’s new off-plan mortgage framework, Aldar is helping establish a more transparent, flexible, and buyer-friendly financing model for Abu Dhabi’s real estate sector — one that’s likely to become the norm as more developers and banks adopt the system.