Abu Dhabi off-plan buyers can now register a mortgage against an eligible property before completion once they have funded at least 50% of its value. The ADREC system allows a lender’s interest to be formally registered while construction is ongoing, enabling qualifying buyers to access financing for later construction installments and the final handover payment. Mortgage approval remains subject to individual bank requirements and existing Central Bank rules.
Original article: Abu Dhabi off-plan property: How Adrec’s 50% mortgage rule works by Arabian Business.
Key Insights:
Buyers Must Fund at Least 50% First
Under Central Bank of the UAE (CBUAE) regulations, mortgages for off-plan properties are capped at a 50% loan-to-value ratio. This applies regardless of the property’s value, intended use or buyer category.
The new Abu Dhabi registration process does not increase that borrowing limit. Instead, it changes when eligible financing can be formally registered. Once a buyer has funded at least half of the property value, a lender may finance the remaining qualifying construction installments and the final payment at handover. Buyer contributions must come from their own resources rather than additional borrowing.
Banks will continue to apply their own affordability, income, valuation and credit requirements. Mortgage repayments also count toward the CBUAE debt burden ratio, which is capped at 50% of gross salary and qualifying regular income.
Mortgage Registration Can Take Place Before Handover
The key change is that lenders can now obtain a registered mortgage interest while an eligible property is still under construction.
Off-plan units are recorded in Abu Dhabi’s Initial Real Estate Register, allowing a lender’s security interest to be registered against the buyer’s contractual property rights. Financing proceeds are paid directly into the development’s project escrow account. Once the property is completed, it transfers to the Real Estate Register together with its associated registered rights and obligations.
The first transaction using the system was completed by Aldar and Abu Dhabi Commercial Bank on September 4, 2026, with the lender registered before the property was handed over. Previously, buyers relied heavily on developer payment plans during construction, with mortgage arrangements typically concentrated around completion.
Off-Plan Sales Account for 89% of Abu Dhabi Residential Sales Value
The change applies to a significant part of Abu Dhabi’s residential market. According to ADREC data cited in the source, the emirate recorded AED 70.4 billion in residential sales during the first half of 2026, with off-plan transactions accounting for 89% of sales value.
Mortgage transactions reached AED 26.7 billion across 8,876 transactions during the same period, with mortgage transaction value increasing by more than 33% compared with the first half of 2025.
What Off-Plan Buyers Should Know
Reaching the 50% threshold does not automatically qualify a buyer for financing. Buyers will still need to confirm that their development supports pre-handover mortgage registration and meet their chosen lender’s income, affordability, valuation and credit requirements. The key distinction is that Abu Dhabi’s system changes the timing of mortgage registration rather than the amount buyers can borrow, with the maximum off-plan LTV remaining at 50%.
