On 13 September 2026, the Abu Dhabi Real Estate Centre (ADREC) confirmed a framework allowing off-plan property to be financed by mortgage during construction, once 50% of the price is paid.
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On 13 September 2026, the Abu Dhabi Real Estate Centre (ADREC), the emirate's property regulator, confirmed the rollout of a first-of-its-kind framework: a buyer of an under-construction (off-plan) property can now take out a mortgage secured against that property before it is handed over. In practice, a purchaser who has already paid 50% of the price can have a bank finance the remaining instalments and the balance due at handover. ADREC's ability to register mortgages on off-plan units has been operational since March 2026; the first full-scale transaction was completed by developer Aldar Properties and Abu Dhabi Commercial Bank (ADCB).
Key takeaways
- The ADREC framework allows a buyer who has paid 50% of an off-plan property's price to take out a mortgage during construction, with the bank financing the remaining instalments and the balance at handover.
- ADREC's ability to register mortgages on off-plan units has been operational since March 2026.
- The first transaction under this framework was completed by developer Aldar Properties and Abu Dhabi Commercial Bank (ADCB), announced in early September 2026.
- The mortgage is formally recorded in the Initial Real Estate Register before the keys are handed over.
- Abu Dhabi's total real estate transactions reached USD 19.2 billion over the period highlighted by ADREC in September 2026.
How this new off-plan financing works
The ADREC scheme answers a simple question: at what point can an off-plan buyer finance their property with a mortgage? The answer is now "as soon as 50% of the price is paid," without waiting for handover. Once that threshold is reached, the purchaser approaches a bank, which takes over the remaining instalments and the final payment due at handover.
The legal innovation lies in the registration: the mortgage is recorded in the emirate's Initial Real Estate Register even before the property physically exists. This formalisation gives the bank genuine security over an under-construction unit, something that was not possible before. Developer Aldar Properties and ADCB served as the test case by completing the first registration under this framework.
Why Abu Dhabi is opening this door now
The emirate is structuring its market during a period of intense activity: ADREC points to total real estate transactions of USD 19.2 billion in 2026. By standardising the registration of off-plan mortgages, the regulator aims to widen the pool of buyers and secure the chain between developers, banks and purchasers.
Until now, buying off-plan in Abu Dhabi rested largely on developers' payment plans, which effectively reserved this segment for buyers with substantial cash on hand. By making bank credit accessible during construction, the emirate brings off-plan closer to buying on the secondary market. To understand where this financing fits within a broader strategy, we set out the market fundamentals in our guide to investing in Abu Dhabi.
What it changes for investors
For an investor, this framework changes two concrete things. First, the source of funds is locked in from the outset: rather than tying up the entire price in a developer payment plan, you can preserve your liquidity and let a bank carry the instalments once 50% is paid. Second, it removes the classic friction point at handover, where a buyer previously had to arrange credit under pressure to cover the balance. Certainty over financing terms shifts to the start of the project rather than the end.
This lever also makes off-plan less of a preserve for large fortunes: by drawing on credit, the same initial capital can reach better-located properties or spread across several units. That said, we remain attentive to the real banking terms — rates, required down payment, developer and project eligibility — which will vary from one case and one lender to the next. Leverage amplifies gains as much as risks; it is something to steer, not something to endure.
At Lucretia, we assess case by case whether this financing serves your objective — resale at handover, letting, or personal residence — and how it dovetails with the emirate's favourable tax regime. To frame an acquisition under this new regime, we support you from property selection through to registration, as part of our offering to invest in Abu Dhabi.
Source: thenationalnews.com — 2026-09-13
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About the author
Benoit CLAUDEL
Director of Strategy & Operations
With over 18 years of experience in real estate and wealth management, Benoît has developed recognized expertise in advising private investors, business executives and family offices. After starting out in a real estate agency and working within one of the most reputable wealth management firms in Paris, he then joined LCL as Head of Private Banking for Île-de-France, advising high-income clients on their real estate strategies. An entrepreneur, he founded and ran his own wealth management firm for 7 years, structuring investment and wealth optimization solutions. Today at Lucretia, Benoît oversees operational strategy, sales performance and advisor training. He works on high-value-added cases, particularly investments via French holding companies, legal structuring and wealth taxation.
