Abu Dhabi Opens Mortgages on Off-Plan Homes: After 50% Is Paid, the Bank Funds the Remaining Instalments Before Handover, First Deal Completed by Aldar and ADCB

2026-09-04

On 4 September 2026 the Abu Dhabi Real Estate Centre (ADREC), Aldar Properties and Abu Dhabi Commercial Bank (ADCB) announced the first registration of a mortgage on an off-plan property in Abu Dhabi. Under the new ADREC framework a buyer who has paid at least 50% of the price of an eligible off-plan unit can mortgage the outstanding amount before construction is complete: the bank funds the remaining instalments during construction and the final payment due at handover, the financing bank is recorded on the mortgage registration certificate before handover, and the mortgage interest is entered in the emirate’s Initial Real Estate Register. The 50% threshold mirrors the UAE Central Bank rule that caps the loan-to-value ratio for off-plan purchases at 50%. Aldar offers the route through Home Finance by Aldar, its free in-house mortgage advisory service connected to more than six conventional and Islamic banks: ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank. The facts below are taken from the joint announcement as reported by Gulf News, Khaleej Times and Economy Middle East on 4 September 2026, from Abu Dhabi Law No. 3 of 2015 and from the Central Bank’s Regulations Regarding Mortgage Loans.

What changed in Abu Dhabi on 4 September 2026

Until now, bank financing of a home bought off-plan in Abu Dhabi worked around the developer’s payment plan: the buyer paid the instalments from own funds and arranged a mortgage at handover, when the unit received its title deed in the Real Estate Register. ADREC’s off-plan mortgage registration service moves the bank into the construction period. The mechanics, as published:

• Threshold. The buyer must have paid 50% of the value of an eligible off-plan unit to the developer.
• What the bank funds. The remaining instalments during construction and the final payment due at handover. The buyer therefore does not need to keep the second half of the price in cash while the building goes up.
• Registration. The financing bank is recorded on the mortgage registration certificate before handover, and the mortgage interest in the unit is recorded in the Initial Real Estate Register, the register in which ADREC records all dispositions over units sold off-plan.
• Who can use it. ADREC says the service is available on a market-wide basis to participating institutions that meet the relevant requirements. It is not limited to Aldar or ADCB.
• First transaction. Completed by Aldar as developer with ADCB as the mortgage bank. The parties have not published the project, the loan amount or the pricing of the first deal.

Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector at ADREC, said: “The completion of this registration demonstrates ADREC’s off-plan mortgage registration service in live market use. By enabling mortgage interests in eligible off-plan real estate units to be recorded in the Initial Real Estate Register, the service strengthens transparency and provides greater clarity and protection for buyers, developers and financial institutions.” He added that the service “is available on a market-wide basis to participating institutions that meet the relevant requirements, supporting a secure and well-regulated off-plan market in Abu Dhabi”.

Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar, said: “The new off-plan mortgage framework introduced by ADREC marks an important step in further enhancing the transparency and accessibility of the market. We are proud to have worked with ADREC and ADCB to complete the first transaction, translating the framework into greater financing flexibility for homebuyers.”

How the off-plan mortgage works, step by step

The announcement lists the benefits from the buyer’s side: certainty over financing terms in advance, liquidity preserved during construction, and no need to arrange a mortgage at completion, with a wider choice of rates and terms than handover-stage financing usually offers. Gulf News points out the lender’s side of the same coin: the bank acquires a formal interest in the property before completion, which strengthens its position if a dispute arises.

The legal basis: Law No. 3 of 2015 and the Initial Real Estate Register

The framework does not create new law. It puts to work provisions that have been on the books since Abu Dhabi Law No. 3 of 2015 Concerning the Regulation of the Real Estate Sector:

• Article 27 establishes the Initial Real Estate Register, in which all dispositions over units sold off-plan are recorded; a disposition that is not registered is not binding on the parties or on third parties.
• Article 29 allows registered off-plan units to be offered for sale, placed under mortgage or otherwise disposed of according to the Executive Regulations.
• Article 35 provides that a mortgage is recorded in the Initial Real Estate Register or the Real Estate Register, as the case may be, and that the mortgage deed may be electronic and has the evidential force of an official document.
• Article 32 requires a mortgagee bank or finance company to be licensed and registered with the Central Bank for real estate financing in the UAE.
• Article 30 governs the transfer of units from the Initial Real Estate Register to the Real Estate Register after the completion certificate, once the buyer has settled the price under the agreement.

What was missing until 2026 was an operational service in which a bank could be entered as mortgagee over a buyer’s off-plan unit while construction is still under way. That is the gap the ADREC service closes. Dubai has been moving along the same line: on 3 September 2026 the Dubai Land Department launched an AI-powered Initial Registration platform for developers’ off-plan sales, another step in the digitalisation of the registers that lenders rely on.

Why the threshold is 50%: the Central Bank rule

Aldar notes that the 50% payment threshold is aligned with UAE Central Bank regulation. The rule is in the Regulations Regarding Mortgage Loans (Circular No. 31/2013, in force since 28 November 2013 and consolidated in April 2020): “Given the long term nature of the development process and the higher level of risk to completion, the maximum LTV for mortgages on property being purchased off plans is 50% regardless of purpose, value, or category of purchaser.” A bank therefore cannot lend more than half of the value of an off-plan unit, which is why the buyer’s own 50% has to be in place before the bank steps in. For ready property the caps are higher:

The same regulations cap the loan term at 25 years, the debt burden ratio at 50% of income and the loan amount at seven years of annual income for expatriates and eight for UAE nationals; repayments must come from salary or verifiable business or rental income, and end-of-service benefits cannot be counted. Our guide to mortgages in the UAE for residents and non-residents covers the documents banks ask for.

Off-plan financing in the UAE in 2026: three routes compared

The ADREC service is the third off-plan financing development of 2026 that we have covered. The three are not competitors so much as layers of the same market:

The difference is in the registration. A bank product describes how a bank is prepared to lend; the ADREC service describes how the emirate’s registry records the bank’s security over a unit that does not yet have a title deed. Until the two meet, an off-plan loan is a promise between bank and borrower; with the registration, it becomes a registered mortgage that follows the unit into the Real Estate Register at handover.

The market this lands in: Abu Dhabi sells 89% of its homes off-plan

The framework arrives in a market that runs on pre-completion sales. According to the Cavendish Maxwell report covered in our article on Abu Dhabi’s record first half of 2026, the emirate recorded 15,500 residential transactions worth AED 67.8 billion in H1 2026, and 12,800 of them, worth AED 60.3 billion or 89% of the total value, were off-plan purchases. ADREC’s own half-year report put residential sales at AED 70.4 billion, almost triple the AED 25.3 billion of H1 2025, with off-plan at 89% of value and 82% of transactions, and projected about 71,000 new homes by 2030 with a peak of 21,800 deliveries in 2028. Every one of those units passes through the Initial Real Estate Register on its way to a title deed, which is why a mortgage that can be registered at the 50% mark matters for the whole pipeline, not for one developer.

Home Finance by Aldar is the first distribution channel. Customers access it through the Live Aldar app and request a call back; the service is free and compares offers from ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank. Off-plan financing, including payments during construction, is available to Aldar customers who have paid 50% or more of the property value at eligible projects.

What this means for buyers and companies in the UAE

• Buyers already past 50%. An Abu Dhabi off-plan buyer who has paid half the price can now ask a participating bank to fund the rest instead of keeping the money aside for the remaining instalments and the handover payment. The bank’s normal checks apply: income, a debt burden ratio of no more than 50% and the 25-year term cap.
• Buyers at the planning stage. The 50% threshold is a Central Bank ceiling, not an ADREC choice. Budget the first half of the price from own funds and plan for the mortgage from the midpoint of the payment plan.
• Companies with relocating staff. Employees buying in Abu Dhabi can now split the cost of an off-plan home between own funds and a registered mortgage during construction; a salary certificate and a UAE bank account are the documents the bank will ask for first. Our work visa and residency service covers the residence permits that precede any mortgage application.
• Investors and corporate buyers. The registration gives the lender a formal interest in the unit before completion. For a buyer that finances through a company or holds several units, the mortgage sits in the same register as the sale agreement, which simplifies due diligence on resale or assignment.
• Not yet published. The list of eligible projects, the requirements for participating institutions, ADREC’s registration fees for off-plan mortgages, the position of non-resident buyers and the pricing of the first Aldar and ADCB transaction have not been disclosed. We will update this article when ADREC or the banks publish them.

Checklist: what to have ready before applying

• Sale and purchase agreement registered in the Initial Real Estate Register, with proof that 50% has been paid to the project escrow account.
• Passport, Emirates ID and residence visa for UAE residents; banks set their own rules for non-residents.
• Salary certificate or audited accounts and six months of bank statements to support the debt burden ratio.
• Developer’s statement of account and the remaining payment schedule, so the bank can size the loan to the outstanding instalments and the handover payment.
• A UAE bank account for repayments; our bank account opening service handles this for newcomers and companies.

How Atlant Capital can help

Atlant Capital works with founders, investors and companies entering the UAE. We handle company setup on the mainland and in UAE free zones, including the choice of jurisdiction for a business that holds or develops property; corporate and personal bank account opening, with the compliance file prepared in advance; work visas and residence permits for founders and staff; and mortgage assistance for residents and non-residents buying in Dubai and Abu Dhabi. Bookkeeping, VAT and corporate tax filings are handled by licensed accounting firms from our partner network.

Conclusion

On 4 September 2026 Abu Dhabi registered its first mortgage on a home that does not yet exist as a title deed. The ADREC framework lets a buyer who has paid 50% of an off-plan unit hand the remaining instalments and the handover payment to a bank, with the bank’s interest recorded in the Initial Real Estate Register under Law No. 3 of 2015 and the 50% threshold taken from the Central Bank’s off-plan LTV cap. Aldar and ADCB completed the first transaction; Home Finance by Aldar connects buyers to six named banks free of charge, and ADREC says the service is open to any participating institution that meets its requirements. In a market where 89% of residential sales value in H1 2026 was off-plan, the change reaches most of the homes being sold in the emirate.

FAQ

Can you get a mortgage on an off-plan property in Abu Dhabi?

Yes, since 4 September 2026. Under the ADREC framework a buyer who has paid at least 50% of the price of an eligible off-plan unit can mortgage the outstanding amount before construction is complete. The bank funds the remaining instalments and the final handover payment, is recorded on the mortgage registration certificate before handover, and the mortgage interest is entered in the Initial Real Estate Register. The first transaction was completed by Aldar Properties and ADCB.

Why does the buyer have to pay 50% first?

Because the UAE Central Bank’s Regulations Regarding Mortgage Loans cap the loan-to-value ratio for property bought off-plan at 50% regardless of purpose, value or category of purchaser. The buyer’s own half of the price therefore has to be paid before a bank can finance the remainder. For ready property the caps are higher: 80% for an expatriate’s first home up to AED 5 million, 70% above that value and 60% for a second or investment property.

Which banks finance off-plan homes in Abu Dhabi under the new framework?

ADCB completed the first registered transaction with Aldar. Home Finance by Aldar, the developer’s free in-house advisory service, offers mortgage options from more than six conventional and Islamic banks: ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank. ADREC says the registration service is available on a market-wide basis to any participating institution that meets its requirements, so other developers and banks can use it.

What is the Initial Real Estate Register in Abu Dhabi?

It is the register created by Article 27 of Abu Dhabi Law No. 3 of 2015 in which ADREC records all dispositions over real estate units sold off-plan; a disposition that is not registered is not binding on the parties or third parties. Article 35 of the same law allows a mortgage to be recorded in this register, and Article 30 moves the unit, with the rights attached to it, to the Real Estate Register in the buyer’s name once the project has its completion certificate and the price has been settled.