Abu Dhabi Completes First Off-Plan Mortgage Registration Under New Framework Allowing Buyers to Secure Financing at 50 Percent Payment Threshold During Construction

Abu Dhabi completed its first registration of a mortgage on an off-plan property on September 4, opening a new financing route for buyers who have paid at least 50 percent of the purchase price before handover. The transaction was completed by Aldar Properties with Abu Dhabi Commercial Bank under a framework launched by the Abu Dhabi Real Estate Centre, which confirmed it has had the capability to register mortgages against off-plan units since March 2026. The framework allows buyers who have paid 50 percent of the value of an eligible off-plan property to secure a mortgage for the remaining amount before construction is completed, with banks able to finance outstanding installments during construction as well as the final payment due at handover. Previously, buyers typically awaited project completion before arranging financing. The move is expected to reduce financial pressure on buyers during later construction stages while giving developers broader access to qualified purchasers. Matthew Green, head of research at CBRE Middle East and North Africa, said the framework allows investors to purchase off-plan properties with more certainty about the source of funds for future stage payments, making it easier to plan financially. Andrew Laver of Cavendish Maxwell stated the framework offers greater clarity and protection for buyers, lenders and developers while improving investor confidence. Off-plan transactions accounted for 89 percent of Abu Dhabi's Dh70.4 billion in residential sales during the first half of 2026, with an average ticket size of Dh5.2 million. Abu Dhabi's residential pipeline for 2026-2030 stands at approximately 36,900 homes under construction.