Abu Dhabi's new off-plan mortgage framework expected to support property market

Abu Dhabi's new off-plan mortgage framework is set to assist buyers and developers by establishing clear mortgage guidelines and increasing investment confidence in the emirate's property market, according to analysts. This regulation allows individuals who have already paid 50 percent of a property's price to secure a mortgage against their off-plan home during construction, instead of waiting until completion.

Adrec has been enabling mortgages against off-plan units since March 2026, after which the service was launched. The framework aims to make the property market more accessible, boost buyer confidence, and minimize transaction complications at handover. By permitting mortgages earlier in the construction phase, investors will have a clearer understanding of their funding sources, facilitating financial planning.

Matthew Green, head of research at CBRE Middle East and North Africa, anticipates the market to expand further over time, becoming more widely available despite certain restrictions. The introduction of the new framework coincides with robust demand for off-plan properties in Abu Dhabi, with off-plan transactions accounting for 89 percent of the total residential sales (Dh70.4 billion) in the first half of the year.

Overall, market activity remains strong despite uncertainty from the Iran conflict. Abu Dhabi's real estate transactions rose 112 percent year-on-year to Dh117 billion in the first six months, with mortgages increasing by a third to Dh26.7 billion across 8,876 transactions. Greater flexibility for buyers and developers is expected, with buyers gaining more financial flexibility and certainty, while developers can support a wider range of qualified buyers, improve visibility over future payments, and reduce the risk of buyer liquidity issues during construction.