Estattor.com

Tag: property financing

  • Aldar Completes Abu Dhabi’s First Off-Plan Mortgage Under ADREC Framework

    Aldar Completes Abu Dhabi’s First Off-Plan Mortgage Under ADREC Framework

    Aldar has become the first developer in Abu Dhabi to complete mortgage financing on an off-plan property through Abu Dhabi Real Estate Centre’s (ADREC) newly launched framework that enables the financing bank to be formally named on the mortgage registration certificate before property handover.

    The framework allows a customer who has paid 50 percent of the purchase price to arrange a mortgage against their off-plan property, with the bank funding the remaining installments and the final handover payment.

    This gives customers certainty over their financing terms in advance, preserves liquidity throughout the construction period and removes the need to arrange a mortgage at completion. It also provides an alternative to traditional financing arranged at handover, giving customers a wider range of financing options and greater choice over rates and terms.

    Setting a new precedent for the Abu Dhabi market, Aldar has completed the first registration under the new framework, with Abu Dhabi Commercial Bank (ADCB) supporting the initial transactions as the mortgage bank, in line with the UAE Central Bank regulation which requires customers to have paid 50 percent of the property price to be eligible for off-plan mortgage financing.

    “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,” said Ghazi Saeed Alateibi, Executive Director – Real Estate Transaction Sector at ADREC.

    “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,” he added.

    Aldar customers can access off-plan financing through ‘Home Finance by Aldar’, an in-house mortgage advisory service available to customers without fees. It provides a simple way to explore options from a broad panel of participating banks and identify the most appropriate financing solution.

    “As Abu Dhabi continues to develop as a leading global business and lifestyle destination, its real estate market is growing in both appeal and sophistication. The new off-plan mortgage framework introduced by ADREC marks an important step in further enhancing the transparency and accessibility of the market,” said Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar.

    The move comes as Abu Dhabi real estate transactions doubled to $31.86 billion in the first half of 2026, with off-plan sales accounting for 89 percent of total residential sales value. The new framework addresses a key financing gap in the emirate’s rapidly growing off-plan market, where buyers previously had to wait until handover to secure formal mortgage registration.

  • ADIB and DAMAC Launch Home Financing Plan with 85% Loan-to-Value

    Abu Dhabi Islamic Bank (ADIB) and UAE real estate developer DAMAC Properties have unveiled a landmark financing solution designed to lower the barriers to homeownership for individuals and families across the Emirates.

    The comprehensive plan provides DAMAC customers with financing of up to 85 percent of the property value on handover, along with subvention equivalent to finance profit charges for up to six months. The offering also waives property valuation fees and includes complimentary property takaful (Shariah-compliant insurance), significantly reducing upfront costs for buyers.

    “True leadership is about anticipating the needs of the people you serve to meet aspiration with opportunity,” said Amira Sajwani, Managing Director of DAMAC Properties. “Through our collaboration with ADIB, we are making homeownership simpler and more affordable to individuals and families. In a world of rapid change, the dream of owning a home should be a constant, so we will continue to build pathways to stability and prosperity to support families in finding a place to call their own.”

    The partnership reflects a shared vision to enhance the homeownership experience and provide flexible financing solutions that support the sustainable growth of the UAE’s real estate sector. It also underscores both parties’ commitment to expanding homeownership opportunities and supporting the long-term stability of residents.

    Amit Malhotra, Global Head of Retail at Abu Dhabi Islamic Bank, described the partnership as “a clear demonstration of ADIB’s commitment to revolutionizing the customer experience as part of its vision for 2035.” He noted that by combining strategic collaborations with leading solutions, such as the bank’s new digital onboarding journey launched in February that reduced home finance application times from days to minutes, ADIB is making its vision of becoming the world’s most innovative Islamic bank a reality.

    The initiative arrives as the UAE removes minimum property value thresholds for residency visas, further opening the market to a broader pool of investors and first-time buyers. Recent data shows that property buyers continue to show strong intent despite expectations of price corrections, with 68% of active seekers planning to purchase within six months.

    The collaboration positions both institutions at the forefront of efforts to support residential ownership in line with the advanced position the UAE real estate market has achieved. By combining high loan-to-value ratios with reduced fees and insurance coverage, the plan addresses key financial obstacles that have traditionally hindered homeownership for many residents.