ADREC’s Off-Plan Mortgage Rule Explained: What 50% Paid Unlocks Before Handover (2026)

For years, buying off-plan in Abu Dhabi meant paying the developer from your own pocket until handover and only then going to a bank. That has started to change. Under a new framework from the Abu Dhabi Real Estate Centre (ADREC), an Abu Dhabi off-plan mortgage can now be arranged and formally registered while the building is still going up, as long as you have already paid 50% of the price.

This guide is written from a mortgage-broker perspective. It explains what the ADREC framework actually does, what it does not do (it does not raise how much a bank can lend), how it differs from the way off-plan financing works in Dubai, a worked example with real current benchmark rates, and the checks a buyer should make before relying on it.

Published: 1 October 2026

Short version: the Central Bank of the UAE already limits off-plan mortgages to 50% of the property value, so a buyer has always needed to fund at least half. What ADREC’s framework changes is the timing and the paperwork: once you have paid 50%, a bank can finance the remaining instalments and the final handover payment during construction, and its mortgage interest can be recorded in Abu Dhabi’s Initial Real Estate Register before the project completes. The first transaction under the framework was completed by Aldar with Abu Dhabi Commercial Bank (ADCB).

What is ADREC’s off-plan mortgage framework?

ADREC’s off-plan mortgage framework lets a bank finance an eligible off-plan unit during construction and have that mortgage formally recorded in the Initial Real Estate Register, instead of waiting until the unit is handed over. The Abu Dhabi Real Estate Centre is the emirate’s real estate regulator and registry. According to The National’s reporting on 13 September 2026, its mortgage registration capability became operational in March 2026.

Three things define the framework, based on the announcements and press coverage we reviewed:

• The 50% trigger. Buyers who have paid 50% of the price of an eligible off-plan unit can mortgage the outstanding balance before construction is complete.
• Registration before handover. The financing bank can be formally named on the mortgage registration certificate, and mortgage interests in eligible off-plan units can be recorded in the Initial Real Estate Register, before completion.
• Market-wide availability. ADREC describes the service as available to participating financial institutions and developers that meet the relevant requirements, not just a single bank or developer.

The first registered transaction was announced on 4 September 2026: Aldar, the developer, completed it with ADCB as the lender. Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector at ADREC, said that enabling mortgage interests in eligible off-plan units to be recorded in the Initial Real Estate Register strengthens transparency and gives buyers, lenders and developers more clarity and protection.

Does 50% paid mean the bank lends you 50%?

Broadly yes, but the 50% rule comes from the Central Bank, not from ADREC. The CBUAE Rulebook’s mortgage regulations (Article 3, “Important Ratios”) cap the loan-to-value ratio on property bought off-plan at 50%, regardless of the buyer’s category or the property’s value. The stated reasoning is the long development period and the higher risk that a project is delayed or not completed.

That explains why the framework is framed around “50% paid.” If the maximum loan is half the value, the buyer must already have put up the other half, through booking and construction-linked instalments paid to the developer. Reporting on the framework notes the 50% threshold lines up with the Central Bank requirement.

The important point for buyers: ADREC’s framework changes when off-plan financing can be registered. It does not raise the maximum loan. Some online commentary mixes the two up. If you see a claim that Abu Dhabi now finances more than 50% of an off-plan price under this framework, we could not confirm it in any official source, and you should ask the bank to show it to you in writing. You also still need to meet the bank’s own affordability tests. The Central Bank caps total debt repayments at 50% of gross income, and our guide on how much you can borrow explains that calculation.

What changes for a buyer, step by step

The practical change is that the lender can come in during construction rather than at the end. Here is the sequence buyers should expect, with the caveat that each bank and developer will set its own documentation.

1. Pay your way to 50%. Follow the developer’s payment plan until you have paid 50% of the unit price. Keep every receipt and the developer’s statement of account.
2. Confirm your project is eligible. Not every project or developer will be part of the framework. Ask the developer and the bank whether your specific project qualifies, and ask for that in writing.
3. Get a bank to assess you. The bank reviews your income, liabilities, credit record and the project, just as it would for any mortgage. See our pre-approval guide for the usual documents and timeline.
4. Mortgage interest is recorded. If approved, the bank’s interest is recorded in the Initial Real Estate Register, and the bank is named on the mortgage registration certificate before handover.
5. The bank funds what remains. The loan covers the remaining instalments during construction and the final payment due at handover, rather than you arranging a lump-sum loan at completion.

What the sources do not spell out is how disbursement is scheduled, how interest accrues before handover, and what fees apply for registration. Those details depend on the lender and on your offer letter, so treat any confident figure you read online with caution and get the terms from the bank.

What does the Initial Real Estate Register entry actually protect?

It records the bank’s mortgage interest on an official register while the unit is still under construction. ADREC says this strengthens transparency and gives buyers, developers and financial institutions more clarity and protection. Andrew Laver, a director at Cavendish Maxwell, made a similar point to The National, describing the registration of mortgage interests before completion as a transparency gain for all three parties.

For a buyer this matters in a few concrete ways:

• Clear record of who has a claim. An off-plan unit can have a buyer, a developer and a lender all with an interest. Having the lender’s interest on the register removes ambiguity.
• Certainty of funds. Matthew Green of CBRE told The National that financing earlier in the construction phase, rather than only at handover, gives investors more certainty about the source of funds for future stage payments.
• Less pressure at handover. Instead of racing to arrange a mortgage in the final weeks, the financing is already in place.

What the registration does not do is guarantee the project. It does not remove delivery risk, and it does not override your contract with the developer. Those remain matters for the sale and purchase agreement and Abu Dhabi’s off-plan escrow rules.

How does it compare with Dubai’s off-plan financing?

The 50% loan cap is the same in both emirates because it is a federal Central Bank rule; the registration mechanics and partnership schemes differ. Our Dubai off-plan mortgage guide covers the Dubai side in detail. In summary:

The Dubai scheme in the last row is covered in our Palm Jebel Ali off-plan mortgage guide. It also uses a 50% paid threshold, but it is a specific developer and bank partnership, while ADREC’s framework is a registration system that participating banks and developers can use. For a broader view of the two markets, see our comparison of Dubai, Abu Dhabi and Sharjah mortgages.

Which banks and developers are involved?

ADCB and Aldar completed the first transaction, and ADREC says the service is open to other participating institutions that meet the requirements. Aldar’s own mortgage advisory service, Home Finance by Aldar, is described in the press release as facilitating mortgages without fees for Aldar customers and is available through the Live Aldar app. The same release lists the banks it works with as ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic, First Abu Dhabi Bank and others.

Two cautions. First, that list describes the banks Aldar’s advisory service works with. It is not an ADREC-published list of banks approved for off-plan registration, so do not assume every bank named will finance every eligible unit. Second, the fee-free wording applies to the Aldar advisory service. Banks will still charge their own mortgage fees, and buyers will have other costs. Our guide to the real cost of buying property sets out the usual categories of cost, although it is written around Dubai, so confirm Abu Dhabi fees with the bank and ADREC.

We did not find an official list of eligible Abu Dhabi projects or developers beyond Aldar’s first transaction. If your developer is not Aldar, ask them directly.

The market behind it: why Abu Dhabi needed this

Abu Dhabi’s market is heavily off-plan, so financing during construction matters. The National reported, for the first half of 2026:

With almost nine in ten residential sales by value happening off-plan, a system in which a bank could only step in at handover left a large part of the market without a mortgage route. The new framework addresses that gap. For a Dubai comparison using DLD figures, see our September 2026 Dubai mortgage market report.

A worked example with today’s rates

The interest-rate environment matters more now, because the framework can put a floating-rate loan in place earlier. On 17 September 2026 the CBUAE raised its Base Rate by 25 basis points from 3.65% to 3.90%, following the US Federal Reserve’s rise. Our post on the September 2026 base rate hike covers who is affected. For variable-rate loans, the benchmark is EIBOR. The official CBUAE fixing on 3 September 2026, before the hike, was 4.00% for three months; one market-data page showed the three-month rate at about 4.20% on 24 September. Check the CBUAE’s daily EIBOR table for the current fixing, and read our EIBOR explainer if the mechanics are unfamiliar.

Now a hypothetical. Take an off-plan apartment priced at AED 2,000,000, where you have paid the required 50%, AED 1,000,000, and you ask the bank to finance the remaining AED 1,000,000 (the CBUAE’s 50% maximum). The 25-year maximum term is set by the Central Bank. Banks set their own margins and we have not verified a specific Abu Dhabi off-plan margin, so the all-in rates below are assumed for illustration only, roughly EIBOR of 4.00% plus an assumed margin of about one percentage point. They are not a quote from any bank.

A quarter-point move changes the instalment by roughly AED 147 a month on this loan, which is the same size as the September base-rate hike. The bigger lesson is that the instalments are calculated on the amount actually drawn. How much has been drawn at each stage, and whether you pay interest only during construction, depends on the bank’s terms, so ask for a schedule in writing. Our table is a standard repayment calculation on the full loan and will not match your offer letter exactly.

Who benefits most from the framework?

Buyers who can comfortably reach 50% paid, want early certainty on funding the rest, and have a stable income. The framework is most useful for:

• Investors buying several units. Earlier financing gives more certainty about how future stage payments will be funded, which is the point made by CBRE’s Matthew Green.
• Buyers whose cash is tied up until handover. If you have paid half and would rather preserve liquidity than prepay further instalments, a mortgage during construction keeps money free.
• Buyers who want to fix the financing before the market moves. Arranging the mortgage earlier means you know the terms rather than facing whatever rates are in force at handover. Whether the rate is fixed or variable depends on the product.

It is less useful for buyers who cannot yet reach the 50% mark, because there is nothing to finance under this route until then. It also does not help buyers who want more than 50% leverage, because the Central Bank cap still applies.

Risks and checks before you rely on it

Treat the framework as a financing convenience, not as protection against project risk. Before you commit, check:

1. Project eligibility in writing. Confirm with the developer and the bank that your exact project and unit are eligible for registration under ADREC’s framework.
2. Your own paid amount. Only amounts paid against the purchase price count towards the 50%. Fees and registration costs generally do not, so confirm how the bank calculates it from the developer’s statement.
3. The bank’s valuation. Banks lend against the lower of price and their own valuation. If the valuation is below your price, you fund the gap. Our guide on a lower bank valuation explains the options.
4. Rate type and what happens at handover. Ask whether the rate is fixed or variable, how long any fixed period lasts, and what happens when the project completes.
5. Fees and early settlement terms. Request a full fee schedule, including any registration or processing charges. Note the Central Bank’s cap on early settlement fees, covered in our early settlement guide.
6. Your down payment source. The Central Bank requires the down payment to come from your own resources rather than other borrowing.
7. Delays and cancellations. Read what your contract says about delays. A mortgage registered on a unit that is delayed still has to be serviced.

Expats and non-residents should also read the rules for non-resident mortgages, since eligibility, documents and banks differ. And because many banks tightened their income scrutiny in 2026, see why UAE banks are tightening lending before you assume approval.

Frequently asked questions

What is the Abu Dhabi off-plan mortgage framework?

It is an ADREC framework that lets banks finance eligible off-plan units during construction once the buyer has paid 50% of the price. The bank’s mortgage interest can be recorded in the Initial Real Estate Register before completion, and the bank is named on the mortgage registration certificate before handover.

When did it start?

The National reported that ADREC’s mortgage registration system became operational in March 2026. The first off-plan mortgage under the framework, by Aldar with ADCB, was announced on 4 September 2026.

Can I get an Abu Dhabi off-plan mortgage before paying 50%?

Not under this framework. The 50% paid threshold is the condition, and it lines up with the Central Bank rule that limits off-plan loans to 50% of value. Some developer schemes in other emirates use different structures, so confirm with the bank.

Does the framework increase the loan-to-value above 50%?

No evidence we found says so. The CBUAE Rulebook caps off-plan mortgages at 50% of the property value, and ADREC’s framework changes when the mortgage can be registered, not the cap. If anyone quotes you a higher off-plan LTV, ask for the bank’s written policy.

Which banks offer it?

ADCB completed the first transaction. Aldar’s Home Finance service says it works with ADCB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, Emirates Islamic, First Abu Dhabi Bank and others, but that is not an official ADREC approved-bank list. Ask each bank whether it will finance your specific project.

Is it only for Aldar projects?

The first transaction was an Aldar one, but ADREC describes the service as available to participating institutions and developers meeting the requirements. We did not find a published list of other developers, so ask yours directly.

Do expats and non-residents qualify?

The announcements do not limit the framework by nationality, and the Central Bank’s 50% cap applies to all purchaser categories. Banks will apply their own residency, income and documentation rules, which are stricter for non-residents. Read our non-resident guide and confirm with the lender.

Is the Aldar Home Finance service really free?

The press release says Home Finance by Aldar facilitates mortgages without fees. That applies to the advisory service. The bank’s own mortgage charges, valuation fees and registration costs are separate, so ask for a full fee breakdown.

How does this differ from Dubai’s off-plan mortgages?

The 50% loan cap is the same because it is a federal rule. Dubai relies on bank- and developer-specific schemes and Oqood registration, while Abu Dhabi’s framework is a registry-level change with the lender’s interest recorded in the Initial Real Estate Register. See our Dubai off-plan and Palm Jebel Ali guides above.

Will a rate rise affect my repayments?

It depends on whether your rate is fixed or variable. A variable loan linked to EIBOR moves with the benchmark, and the CBUAE’s Base Rate rose to 3.90% on 17 September 2026. A fixed-rate period protects you until it ends. Ask the bank exactly how your rate is set.

Talk to Al Ghaf about financing an Abu Dhabi off-plan purchase

Al Ghaf Mortgage offers two services: Mortgage Consulting and Banking Consultation. If you are close to the 50% mark on an off-plan unit, we can help you understand how lenders are likely to treat your income and your project before you apply, so you know what the bank will ask for. Use our Contact Us page or message us directly on WhatsApp. If you are still weighing whether to use an adviser at all, our guide to using a mortgage broker versus a bank sets out the trade-offs.

Message Al Ghaf on WhatsApp: +971 50 127 6925

This article is general information, not financial advice. Regulations, bank policies, rates and fees change; confirm current terms with ADREC, the lender or a mortgage consultant before you commit.

If you’re also arranging your residence visa, this guide to mandatory health insurance for a UAE residence visa in Dubai and Abu Dhabi covers a cost buyers often overlook.

To understand how your instalments are safeguarded while the project is being built, read this explainer on Dubai escrow account rules and off-plan payment protection.