Aldar has become the first developer in Abu Dhabi to complete mortgage financing on an off-plan property through a newly launched framework from the Abu Dhabi Real Estate Centre (Adrec) that allows a financing bank to be formally named on the mortgage registration certificate ahead of handover.
Under the framework, a customer who has paid 50 per cent of the purchase price can arrange a mortgage against their off-plan property, with the bank funding the remaining instalments and the final handover payment.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
This gives buyers certainty over financing terms in advance, preserves liquidity during construction, and removes the need to arrange a mortgage at completion – offering an alternative to traditional handover-stage financing with wider choice over rates and terms.
Setting market precedent
Aldar completed the first registration under the new framework, with Abu Dhabi Commercial Bank (ADCB) supporting the initial transactions as the mortgage bank.
This is in line with UAE Central Bank regulation, which requires customers to have paid 50 per cent of the property price to be eligible for off-plan mortgage financing.
Ghazi Saeed Alateibi, executive director of real estate transaction sector, said the completion of the registration demonstrated 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 said, adding that the service is available on a market-wide basis to participating institutions that meet the relevant requirements.
“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.
Off-plan financing, including payments during construction, is now available to Aldar customers who have paid 50 per cent or more of the property value at eligible projects.
The mortgages are being facilitated without fees through Home Finance by Aldar, an in-house advisory service that connects customers to more than six participating conventional and Islamic banks, including ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and First Abu Dhabi Bank.
Source: Khaleej Times