Abu Dhabi has formalized a unified process allowing eligible mortgages on off-plan properties to be registered before handover, creating a clearer route for buyers, developers and lenders to document financing during construction. The Abu Dhabi Real Estate Centre (ADREC) introduced the framework as off-plan properties accounted for 89% of the emirate’s AED 70.4 billion residential sales value in the first half of 2026.
Original article: Abu Dhabi standardizes off-plan mortgage registration as sales hit $19.2 billion by Economy Middle East.
Key Insights:
Mortgages Can Be Registered Before Handover
Under the framework, an approved mortgage can be recorded against an eligible off-plan unit in Abu Dhabi’s Initial Real Estate Register while the property is still under construction. Mortgage documentation can be incorporated into the registration of the sale and purchase agreement, bringing the purchase and financing process together before completion.
ADREC said the legal ability to register mortgages against off-plan properties already existed, meaning the change is primarily operational rather than legislative. Mortgage registrations for off-plan units began in March 2026, with the latest framework standardizing the process for eligible developers and approved financial institutions.
The first transaction under the new operational framework was completed on September 4 by Aldar Properties and Abu Dhabi Commercial Bank. In that specific transaction, a buyer who had already paid 50% of the property’s price was able to mortgage the unit, with the bank financing the remaining installments and handover payment.
Banks Retain Control Over Lending Terms
The framework does not introduce a standardized off-plan mortgage product or require lenders to finance particular projects, properties or buyers. Banks remain responsible for credit assessments, eligibility requirements, mortgage rates, financing ratios, income criteria and repayment terms.
The 50% threshold used in the first Aldar-ADCB transaction should therefore not be interpreted as a market-wide requirement. Other lenders can establish their own products and eligibility criteria while using ADREC’s standardized registration process, provided the participating developer and project also meet the relevant requirements.
For eligible buyers who receive lender approval, the main change is that financing can now be formally documented and the lender’s interest registered against the property while it remains under construction.
Off-Plan Properties Account for 89% of Residential Sales Value
The framework applies to a segment that now represents the majority of Abu Dhabi’s residential property activity. Residential sales reached AED 70.4 billion in H1 2026, almost three times the AED 25.3 billion recorded during the same period of 2025.
Off-plan properties accounted for 89% of sales value and 82% of transactions, equivalent to approximately AED 62.7 billion in residential sales.
Mortgage activity across Abu Dhabi has also increased, reaching AED 26.7 billion across 8,876 transactions during H1 2026, more than 33% higher in value year-on-year.
A More Structured Route for Off-Plan Financing
Standardized mortgage registration gives eligible buyers another potential financing route alongside developer payment plans and their own capital during construction. Its wider impact will depend on how many banks and developers introduce qualifying off-plan mortgage options.
The framework does not guarantee access to financing or replace lenders’ individual eligibility requirements. Instead, it creates a common regulatory process for formally registering approved mortgages before handover, an increasingly relevant development in a market where off-plan properties account for the majority of residential sales.
