The Abu Dhabi Real Estate Centre (ADREC) has launched a framework that lets mortgage interests on off-plan homes be recorded in the primary register before handover. The first deal under the framework was closed by Aldar and Abu Dhabi Commercial Bank (ADCB); six banks are connected; financing is available once the buyer has paid 50% of the purchase price — in line with Central Bank of the UAE rules.
The completion of the first transaction was announced publicly on 4 September 2026. For a market where off-plan drives the bulk of residential deals, this is a structural change: mortgage financing on units under construction can now follow the same logic that already applies to completed homes.
What ADREC has actually launched
The new ADREC service allows the lender to be named on the Initial Real Estate Register — the Abu Dhabi register that tracks units still being built. Previously the bank could not be recorded on an off-plan entry, so classical mortgage financing before handover was structurally unavailable: banks lacked a legal instrument to fix their interest against an unfinished asset.
Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector at ADREC, said the ability to record mortgage interests on eligible off-plan units in the Initial Real Estate Register "strengthens transparency and protects buyers, developers and financial institutions". He added that the completed first transaction demonstrated the service in live market use.
How the financing works: the 50% threshold
Mechanics per the press release and coverage by Gulf News, Khaleej Times and TradeArabia:
- Payment threshold: the buyer must pay at least 50% of the price of an eligible off-plan unit. The threshold aligns with Central Bank of the UAE mortgage lending rules for individuals.
- Bank financing: the remainder — developer instalments during construction and the final handover payment — is covered by the mortgage.
- Recording of the bank's interest: the mortgage charge is entered into the Initial Real Estate Register before the unit is handed over.
- What happens at handover: when keys change hands, the entry migrates to the standard Real Estate Register along with the title.
Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar, called the framework "an important step in enhancing the transparency and accessibility of the market". Aldar buyers can access a dedicated in-house advisory line — Home Finance by Aldar — a fee-free mortgage service that compares offers from participating banks.
Which banks are connected
| Bank | Type |
|---|---|
| Abu Dhabi Commercial Bank (ADCB) | Conventional bank · closed the first deal |
| Abu Dhabi Islamic Bank (ADIB) | Islamic bank |
| Dubai Islamic Bank (DIB) | Islamic bank |
| Emirates NBD | Conventional bank |
| Emirates Islamic | Islamic bank |
| First Abu Dhabi Bank (FAB) | Conventional bank |
Judging by Aldar's wording, the panel is set to grow. The developer stresses that the tool is initially offered against its own projects, but the ADREC regulatory framework applies to the wider Abu Dhabi market — meaning other developers registered under ADREC supervision can adopt the same scheme.
Why it matters: the Abu Dhabi market in 2026
Per the ADREC Abu Dhabi Real Estate Market Report for H1 2026, real estate transactions in the emirate reached AED 117bn — up 112% year on year. Residential deals brought in AED 70.4bn against AED 25.3bn in the same period of 2025. The demand mix is tilted heavily toward under-construction stock: off-plan accounted for about 89% of residential value and 82% of deal count. Off-plan apartment sales rose 220% year on year; off-plan villas and townhouses were up 289%. Resident expatriates and foreign buyers together delivered 70% of residential sales value.
Until now that market was mostly funded from the buyer's own capital via developer payment plans, with syndicated financing a rare exception. Banks could not lend against an under-construction unit because there was no legal way to record their charge. The new ADREC framework closes that gap.
What changes for the buyer
Three practical consequences:
- Less locked-up cash. Buyers no longer need to reserve the full purchase amount for the handover date. Once half is paid, the balance can stay in operating cash or bank deposits.
- Early rate certainty. Mortgage terms are locked in during construction rather than opened as a separate task at handover — historically a source of delays and cost overruns.
- A clean legal contour for the bank. A formal primary register entry removes part of the uncertainty that made off-plan Abu Dhabi "unbankable" for standard mortgage products.
For an investor eyeing a portfolio of several under-construction units, the mechanics now line up with mortgage leverage. That flows straight into the visa track as well: UAE Golden Visa 2026 accepts mortgaged and off-plan units at the AED 2 million DLD-valuation threshold, so the "off-plan + mortgage + residency" bundle is no longer an exception in Abu Dhabi either. How to compute the actual net yield on such a deal is covered in our breakdown of Dubai property yields and where ROI is really made.
What to verify before the deal
- The project must be eligible under the ADREC framework — confirm with the developer or the participating bank.
- The full 50% has to be actually paid; upcoming instalments do not count as already paid.
- Mortgage terms — LTV, rate, insurance, income requirements — are set by the specific bank. The ADREC 50% rule is an access threshold to the service, not a uniform mortgage price.
- Registration fees for the Initial Real Estate Register entry follow the ADREC schedule; individual banks may add their own admin charges.
This material is for information only and does not constitute investment or mortgage advice. Primary source — ADREC / Aldar / ADCB press release of 4 September 2026. Verify current terms with the bank and the developer.
