Abu Dhabi's new off-plan mortgage framework is expected to help buyers and developers by providing clarity on mortgages and boost investor confidence in the emirate's property market, according to analysts.
The regulation allows a buyer who has already paid 50 per cent of the home's price to arrange a mortgage against their property during construction, rather than waiting until building is complete.
"Adrec's capability to register mortgages against off-plan units has been operational since March 2026, " it said in responses to The National. "Since then, Adrec has engaged relevant developers and financial institutions on the requirements for implementing the service."
The first live registration followed once those requirements had been completed, it added.
The move is expected to make the property market less exclusive, as well as enhance buyer confidence and reduce transaction friction at handover.
"By facilitating mortgages earlier during the construction phase, as opposed to only on handover, investors will be able to purchase off-plan properties with more certainty of the source of funds for future stage payments, making it easier to plan financially," said Matthew Green, head of research at CBRE Middle East and North Africa.
"Whilst there are obviously restrictions in place, specifically in terms of the 50 per cent limit for payments and which developers and financial institutions are eligible to participate, we would expect to see this market evolve further over time, becoming more widely available."
It will also help increase property transactions and widen the scope of potential source markets, he added.
The introduction of the new framework comes as demand for off-plan property remains strong in the emirate, latest data from the Abu Dhabi Real Estate Centre shows.
Of the total residential sales of Dh70.4 billion ($19 billion) recorded in Abu Dhabi in the first half of the year, off-plan transactions accounted for 89 per cent.
Overall, market activity remains strong despite uncertainty stemming from the Iran war.
Abu Dhabi's total real estate transactions in the first six months rose 112 per cent year-on-year to hit Dh117 billion, with transaction volumes rising 61.7 per cent to 16,838, Adrec said.
Mortgages climbed by a third to Dh26.7 billion across 8,876 transactions, the data shows.
Abu Dhabi's residential pipeline for 2026-2030 stands at about 36,900 homes under construction, with apartments accounting for 66 per cent and villas 33 per cent, while serviced apartments represent 1 per cent, Knight Frank said.
Greater flexibility for buyers
Both buyers and developers will benefit from the new regulation, said Farooq Syed, chief executive of Springfield Properties.
"For buyers ... access to mortgage financing before handover provides greater flexibility in managing the remaining construction instalments and final payment. It also gives buyers more certainty around their financial commitments as they move closer to completion."
For developers, the framework could support a broader base of qualified buyers, improve visibility over future payments and reduce the risk of buyers facing liquidity pressure towards the later stages of construction, Mr Syed added.
Property developer Aldar has already said it offers mortgage financing on an off-plan property for its customers under Adrec's newly launched framework, with Abu Dhabi Commercial Bank the lender.
The framework provides "greater clarity and protection for buyers, lenders and developers", and improves investor confidence in the emirate's property sector, said Andrew Laver, director of Cavendish Maxwell in Abu Dhabi. "It enhances transparency by allowing mortgage interests to be recorded in the Initial Real Estate Register before completion."
