Abu Dhabi Launches First Off-Plan Mortgage Under New ADREC Framework
Abu Dhabi has completed its first off-plan mortgage registration under a new framework by the Abu Dhabi Real Estate Centre (ADREC), allowing buyers to secure financing for properties ahead of handover.
Abu Dhabi has officially rolled out a new off-plan mortgage framework, with Aldar and Abu Dhabi Commercial Bank (ADCB) completing the first registration. This new system, introduced by the Abu Dhabi Real Estate Centre (ADREC), allows banks to be formally named on mortgage registration certificates even before a property is handed over to the buyer.
How the New Framework Works
Under this new structure, buyers can arrange a mortgage for an off-plan property once they have paid 50% of the purchase price. The financing bank then covers the remaining construction instalments and the final handover payment. This process aligns with existing UAE Central Bank regulations, which mandate a 50% payment threshold for off-plan mortgage eligibility.
This framework offers significant benefits for buyers, including greater certainty regarding financing terms in advance of completion. It also helps to preserve liquidity during the construction phase and provides an alternative to traditional handover-stage financing, offering a wider selection of rates and terms from various financial institutions.
Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector, noted that recording mortgage interests in eligible off-plan units in the Initial Real Estate Register enhances transparency and provides greater protection for buyers, developers, and financial institutions. The service is now available market-wide to all participating institutions that meet the necessary requirements.
Aldar facilitated its initial transactions through "Home Finance by Aldar," an in-house advisory service that connects customers with over six conventional and Islamic banks, including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic, and First Abu Dhabi Bank.
Questions, answered
- What is the key feature of the new ADREC off-plan mortgage framework?
- The new framework allows a financing bank to be formally named on the mortgage registration certificate for an off-plan property even before the property is handed over to the buyer, providing greater certainty and flexibility.
- What is the eligibility requirement for buyers to use this off-plan mortgage scheme?
- Buyers must have paid at least **50% of the purchase price** of their off-plan property to be eligible for mortgage financing under this new framework, in line with UAE Central Bank regulations.
- Which entities supported the first registration under the new framework?
- Aldar completed the first registration as the developer, with Abu Dhabi Commercial Bank (ADCB) supporting the initial transactions as the mortgage bank.
- What are the benefits for buyers using this off-plan mortgage framework?
- Buyers gain certainty over financing terms in advance, can preserve liquidity during construction, and have a wider choice of rates and terms compared to traditional handover-stage financing.
- Which banks are participating in facilitating these off-plan mortgages for Aldar customers?
- Aldar's Home Finance service connects customers to over six banks, including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic, and First Abu Dhabi Bank.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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