Buyers of off-plan homes in Abu Dhabi can now arrange a mortgage before handover, once they have paid half of the price. The Abu Dhabi Real Estate Centre (ADREC) set out a unified framework in September that records the mortgage on an eligible off-plan unit in the Initial Real Estate Register before the home is handed over, WAM reported. Aldar and Abu Dhabi Commercial Bank (ADCB) completed the first transaction under it, announced on 4 September 2026.
Here is how the framework works, where the 50% comes from, how it fits common payment plans, and what to check before you count on it.
What ADREC Announced
- A mortgage on an eligible off-plan unit can be recorded in the Initial Real Estate Register before handover.
- The sale and purchase agreement, the mortgage documents and the registration are handled together in one process.
- The legal basis for registering these mortgages already existed. What is new is one operating route that developers and banks can follow.
- The framework does not create a new mortgage product and does not change any bank's approval criteria. Financing decisions, eligibility and terms stay with the lender.
- ADREC began registering off-plan mortgages in March 2026, and the first live registration followed once the developer and the bank met the requirements.
ADREC says the aim is clarity for the buyer, the developer and the bank throughout construction, with the lender's rights formally recorded.
Where the 50% Comes From
The UAE Central Bank's mortgage rules cap borrowing on a home bought off-plan at 50% of its value, whatever the purpose, the price or the buyer. A bank can therefore lend at most half, and the buyer funds the other half first. Aldar's statement on the first deal put it the same way: a customer who has paid 50% of the purchase price can arrange a mortgage against the off-plan property, with the bank funding the remaining instalments and the final handover payment.
The same rules protect you during construction. The bank must use your own share first, and it pays the developer only against construction milestones confirmed by the bank or by an independent professional.
How It Fits Common Payment Plans
The more a plan asks for during construction, the earlier a bank can step in. Among the Aldar launches we list, Yas Riva Residences uses a 65/35 plan, The Canopies at Yas Point a 55/45 plan and Sei Saadiyat a 50/50 plan.
| Plan | Paid before handover | When a mortgage can start | Most a bank can fund |
|---|---|---|---|
| 65/35 | 65% | During construction, once 50% is paid | The last 15% of instalments and the 35% on handover |
| 55/45 | 55% | During construction, once 50% is paid | The last 5% of instalments and the 45% on handover |
| 50/50 | 50% | Once the construction instalments are paid | The 50% on handover |
| 40/60 | 40% | At handover | Up to 50%, with the other 10% from your own funds |
Until now, most buyers waited until the building was complete to arrange a mortgage, The National noted, so every instalment and the handover payment had to come from their own funds or wait for completion.
A Worked Example
Take a home priced at AED 2,000,000 on a 65/35 plan. After you have paid AED 1,000,000 of instalments, which is 50%, a bank that approves you can fund up to AED 1,000,000: the remaining AED 300,000 of construction instalments and the AED 700,000 due on handover.
Abu Dhabi's fee schedule, published by ADREC, charges 1 per thousand of the mortgage amount to register a mortgage, or 0.5 per thousand where the property secures a housing loan, so between AED 500 and AED 1,000 in this example. Test the monthly cost of that balance in our mortgage calculator before you commit.
What It Means for Buyers
- Less cash tied up late in the build. On plans with heavy construction instalments, a bank can take over once you reach 50%, instead of you funding every instalment until completion.
- Earlier certainty. Market analysts quoted by The National said buyers can purchase with more certainty that the funds will be there, because the mortgage is arranged before completion.
- It is not a guarantee. The bank still assesses your income, your credit record and the valuation, and it will not lend more than 50% of the value.
- Your project has to be set up for it. The route is open to licensed developers and approved banks that meet ADREC's requirements, so ask both whether your unit qualifies.
Five Questions to Ask Before You Rely on It
- Has the developer completed ADREC's requirements for off-plan mortgage registration on this project?
- Which banks will lend on this project, and at what rate and margin?
- Will the bank's valuation match the price you agreed? The 50% limit is measured against the valuation, not the price.
- What happens to the loan if handover is delayed?
- Is every payment you make going into the project's escrow account?
Our guide to mortgages in Abu Dhabi covers the borrowing limits and fees in full, our guide to buying off-plan explains escrow and registration, and you can compare payment plans across our off-plan projects.
FAQ
Can I get a mortgage on an off-plan property in Abu Dhabi?
Yes, once you have paid at least 50% of the price and a bank approves you. Under ADREC's framework the mortgage is recorded in the Initial Real Estate Register before handover.
Why do I have to pay 50% first?
The Central Bank's mortgage rules cap borrowing on off-plan homes at 50% of the value for every buyer, so the other half has to come from you.
Who completed the first off-plan mortgage under the framework?
Aldar and Abu Dhabi Commercial Bank, in a transaction announced on 4 September 2026.
Does the framework guarantee me a loan?
No. ADREC says financing decisions, eligibility and commercial terms remain entirely with the lender. The framework only provides the route to register the mortgage.
What is the Initial Real Estate Register?
The register in which Abu Dhabi records every disposition of a unit sold off-plan. Under the law, such dispositions are not binding unless they are registered there.
Does it work for every off-plan project?
Only where the developer and the bank meet ADREC's requirements. Ask both before you sign, and get the bank's approval in writing.
When did ADREC start registering off-plan mortgages?
In March 2026. The unified operating framework that sets out the full process followed in September 2026.
