Aldar Properties has completed Abu Dhabi’s first mortgage financing registration for an off-plan property under a new framework introduced by the Abu Dhabi Real Estate Centre (Adrec), marking a change in how buyers can secure property financing before a project is handed over.
The framework allows a financing bank to be formally recorded on the mortgage registration certificate before the completion of an off-plan property. Buyers who have paid at least 50 per cent of the purchase price can arrange mortgage financing against their property, with the bank covering the remaining instalments and the final payment due at handover.
Aldar completed the first registration under the framework, with Abu Dhabi Commercial Bank (ADCB) acting as the mortgage bank for the initial transactions.
The arrangement is designed to give buyers greater certainty about their financing before construction is completed. It can also help customers preserve cash during the construction period while allowing them to secure mortgage rates and terms in advance rather than waiting until handover.
The requirement for buyers to have paid 50 per cent of the property value is aligned with regulations issued by the UAE Central Bank for off-plan mortgage financing.
Ghazi Saeed Alateibi, executive director of the real estate transaction sector at Adrec, said the first registration demonstrated that the centre’s off-plan mortgage registration service was now operating in the market.
He said recording mortgage interests for eligible off-plan properties in the Initial Real Estate Register would improve transparency and provide greater clarity and protection for buyers, developers and banks.
The service is available across the market to participating institutions that meet Adrec’s requirements.
Faisal Falaknaz, chief financial and sustainability officer at Aldar, said the new framework was an important development for transparency and accessibility in Abu Dhabi’s property market.
Under the new system, Aldar customers who have paid 50 per cent or more of the property value can access off-plan financing, including financing for payments that remain due during construction, at eligible developments.
The developer is facilitating the mortgages through Home Finance by Aldar, its in-house advisory service. The service connects customers with more than six conventional and Islamic banks, including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank.
The financing service is being offered without fees through the advisory platform.
The new framework gives eligible buyers another route to manage property payments before handover. By allowing banks to be registered against qualifying off-plan units earlier in the purchasing process, the system could also reduce the need for buyers to arrange mortgage financing at the final stage of a property’s completion.
