How Off-Plan Mortgages Work in Abu Dhabi: The 50% Rule Explained (2026)

For years, buying off-plan in Abu Dhabi meant one thing: cash. You paid the developer instalment by instalment until handover, and only then could a bank step in. That has changed. Since March 2026, buyers can take a mortgage on an off-plan property while it is still being built, as long as they have paid at least 50% of the price.

If you own, or plan to buy, off-plan property in Abu Dhabi, this is the most important rule change of the year. Here's how it works.

What is the Abu Dhabi off-plan mortgage rule?

The Abu Dhabi Real Estate Centre (ADREC) now registers mortgages against off-plan units. Once a buyer has paid 50% of the purchase price to the developer, they can arrange bank financing for the remaining balance during construction, instead of waiting for completion.

The mortgage is recorded in ADREC's Initial Real Estate Register before the property is finished. That gives the buyer, the bank and the developer a clear, official record of who holds what interest in the unit.

Aldar Properties was the first developer to complete an off-plan mortgage under the framework, with Abu Dhabi Commercial Bank (ADCB) as the lender.

How does an off-plan mortgage work in Abu Dhabi? Step by step

Buy the unit and follow the developer's payment plan. Your early instalments are paid from your own funds. Reach 50% paid. Once half the purchase price is with the developer, you become eligible. Apply to a participating bank. The bank assesses you as it would for any mortgage: income, existing debts and credit history. The mortgage is registered with ADREC. Your lender's interest is recorded on the Initial Real Estate Register while the building is still under construction. The bank funds the rest. Remaining construction instalments and the final handover payment are covered by the loan, and you repay the bank monthly.

Why the 50% threshold matters

The 50% mark lines up with UAE Central Bank lending rules, which generally cap loans on off-plan property at 50% of its value. In practice, you fund the first half and the bank can fund the second.

Before this change, many buyers hit a wall in the final stages of a payment plan, when large instalments and the handover payment fall due close together. Now that last stretch can be financed.

As Farooq Syed, CEO of Springfield Properties, put it: access to mortgage financing before handover "provides greater flexibility in managing remaining construction instalments and final payment."

Who benefits most?

End users who want to move in but don't have 100% of the price in cash. Investors who want to keep capital free for a second purchase instead of tying it all up in one unit. Overseas buyers who need certainty on how they will fund the final payment before committing. Developers, who gain access to a wider pool of qualified buyers.

Matthew Green of CBRE Middle East and North Africa said that by allowing mortgages earlier in construction, "investors can purchase with more certainty of fund sources for future payments, making financial planning easier."

Abu Dhabi off-plan market in numbers (H1 2026)

The rule arrives in a market already running hot. According to ADREC's H1 2026 market report:

Residential sales reached AED 70.4 billion, up from AED 25.3 billion in H1 2025. Off-plan made up 89% of residential sales value and 82% of deals. Expat residents and overseas buyers accounted for 70% of residential sales value. Mortgages rose 33% to AED 26.7 billion across 8,876 transactions. Top areas by sales value: Hudayriyat Island (AED 19 billion), Saadiyat Island (AED 13.3 billion), Al Reem and Al Maryah Island (AED 10.5 billion) and Yas Island (AED 7.3 billion).

With around 36,900 homes due for completion between 2026 and 2030, financing at construction stage is likely to shape how a large share of those units are bought and resold.

What to check before you rely on an off-plan mortgage

Confirm your developer and project are participating. Not every developer and bank has completed the setup yet, so ask before you sign. Get a pre-approval early. Your eligibility is assessed when you apply, not when you buy. A change in income or interest rates can affect what you can borrow. Budget for fees. Expect mortgage registration fees, bank processing fees and valuation costs on top of the price. Read the payment plan closely. Know exactly when you will reach 50%, and when the larger instalments fall due. Plan for the rate. Most UAE mortgages are linked to EIBOR, so repayments can move over time.

Does this apply in Dubai?

No. This framework is specific to Abu Dhabi and ADREC. Dubai off-plan buyers are subject to the Dubai Land Department's own rules and each bank's lending criteria. If you are comparing the two emirates, speak to an adviser about how financing differs for your situation.

Frequently asked questions

Can I get a mortgage on off-plan property in Abu Dhabi? Yes. Since March 2026, buyers who have paid at least 50% of the purchase price can take a mortgage during construction, registered with ADREC.

How much deposit do I need for an off-plan mortgage in Abu Dhabi? You need to have paid at least 50% of the property price to the developer before a bank can finance the remainder.

Which bank did the first off-plan mortgage in Abu Dhabi? Abu Dhabi Commercial Bank (ADCB) financed the first off-plan mortgage under the framework, on an Aldar Properties project.

Can foreigners get an off-plan mortgage in Abu Dhabi? Eligibility depends on the lender. Expat residents and overseas buyers make up most of Abu Dhabi's buyers, but each bank sets its own criteria for non-residents.

Thinking about buying off-plan?

The new rule makes off-plan more accessible, but the details of each project, payment plan and lender matter. Speak to the We Are Property team for a straight answer on what you can afford and which projects make sense for you.

Figures are drawn from ADREC's H1 2026 Abu Dhabi Real Estate Market Report and public reporting on the framework. This article is for general information only and is not financial advice. Speak to a licensed mortgage adviser before committing.