Why this matters at all
Until now, buying off-plan in the UAE has been a cash exercise. The Central Bank's mortgage regulations cap lending on off-plan purchases at 50% loan to value, because the lender is advancing money against a building that does not exist yet. So developers competed on payment plans instead of financing, and buyers funded construction out of savings.
That constraint shaped the whole market. Off-plan accounted for 89% of Abu Dhabi's AED 70.4 billion of residential sales value in the first half of 2026, a segment overwhelmingly dominated by cash buyers. Anything that lets banks into that space changes who can participate.
Announcement one: the ADREC framework, Aldar and ADCB
On 4 September 2026, Aldar became the first developer in Abu Dhabi to complete mortgage financing on an off-plan property, with Abu Dhabi Commercial Bank as lender, under a framework from the Abu Dhabi Real Estate Centre.
The mechanism is administrative rather than a change to lending limits. ADREC can now record the financing bank on the mortgage registration certificate before the property is handed over, which gives the lender a formal registered interest in a property that does not yet physically exist. That is what was missing.
| How it works | |
|---|---|
| Buyer pays | 50% of the purchase price first |
| Bank then finances | The remaining instalments and the final handover payment |
| Registration | Lender named on the certificate before handover |
| Central Bank alignment | Aldar states the 50% threshold aligns with CBUAE regulations |
ADREC has said the capability has been operational since March 2026, with the first live registration following once requirements were met. Aldar is offering it through its in-house mortgage advisory service, which it describes as free to customers and covering more than six conventional and Islamic banks.
Announcement two: Modon and ADIB, up to 75%
Separately, in July 2026, Modon signed a memorandum of understanding with Abu Dhabi Islamic Bank for what both describe as the emirate's first off-plan home financing solution, offering eligible buyers up to 75% financing for participating future Modon developments.
On the published structure, the buyer pays around 15% across construction and a further 5% to 10% at handover. On an AED 3.5 million home that is roughly AED 525,000 during construction, with AED 175,000 to AED 350,000 at completion.
The first named project: Wadeem Gardens
On 14 September 2026, Modon named Wadeem Gardens, a new villa release on Hudayriyat Island, as the first project to carry the ADIB financing. At the time of writing this has not been widely reported.
The name is not accidental. The original Wadeem, Modon's first release of villa plots on Hudayriyat, launched in July 2025 opposite Al Bateen and sold out within 72 hours, generating AED 5.5 billion, the highest-value release in Abu Dhabi that year. Plots started from AED 3.2 million on a 50/50 plan, in cash. Wadeem Gardens is the follow-on, and it arrives with bank financing attached, which the original never had.
That combination, a proven sell-out location and a lower cash barrier to entry, is why this particular announcement matters more than the July memorandum did. It also lands on an island that topped Abu Dhabi property sales in the first half of 2026.
The bit most coverage skips. A 75% loan to value on off-plan sits above the Central Bank's stated 50% cap. This remains a Modon and ADIB arrangement for specific Modon projects, not a change to national lending rules. Wadeem Gardens is the first named project; the full terms and the eligibility criteria for it have not been published. Treat the 75% figure as the announced maximum, subject to eligibility, not as a facility available on any Abu Dhabi property.
The two are not the same thing
| ADREC framework, Aldar and ADCB | Modon and ADIB | |
|---|---|---|
| Status | Live, first transaction completed | Memorandum of understanding |
| Maximum financing | Aligned with the 50% rule | Stated up to 75% |
| Buyer pays first | 50% of the price | Around 15% across construction |
| Applies to | Eligible off-plan property under the ADREC framework | Wadeem Gardens, Hudayriyat, first named. Further Modon projects expected |
| Detail published | Mechanism and threshold confirmed | First project named, full terms pending |
The question nobody has answered
If you are reading this from London, Hong Kong or Singapore, the relevant question is not the headline percentage. It is this: can a non-resident use either facility, and on what terms?
Neither announcement has confirmed the treatment of international buyers, and that is not a small omission. UAE banks have historically lent to non-residents at lower loan-to-value ratios, higher rates and shorter terms than residents receive, with a much narrower field of lenders willing to consider an overseas applicant at all. There is no reason yet to assume off-plan financing will be more generous on that front than completed-property lending has been.
There is a second consideration if residency matters to you. Abu Dhabi has been reported as applying stricter treatment to mortgaged property when assessing the AED 2 million Golden Visa threshold, with equity outside the mortgage expected to meet it. Financing a purchase and qualifying for residency on the same asset may not be as compatible as it first appears. Confirm both before you plan around either.
What we would actually tell a client today
- Do not restructure your purchase around the 75% figure yet. Wadeem Gardens is the first named project, but the terms and eligibility are not published. Plan on cash or on the 50% framework, and treat anything better as upside.
- Ask the developer directly, in writing, whether their specific project is eligible and whether non-residents qualify. Marketing teams are ahead of the underwriting teams on this.
- If you are financing to reach the Golden Visa threshold, stop and check. The mortgage treatment could undo the visa objective entirely.
- Compare against a developer payment plan. A 60/40 or 65/35 plan with no interest may still beat a mortgage once you price the borrowing. Financing availability is not automatically financing value.
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Request the packThe bigger picture
Step back and this is the more interesting signal. A market where off-plan is 89% of residential value, and which has run almost entirely on cash, is building the plumbing to let banks in. That widens the buyer pool, and a wider buyer pool supports pricing.
It also tells you something about direction of travel. Regulators do not build mortgage registration frameworks for markets they expect to shrink. Alongside AED 117 billion of transactions in the first half of 2026 and foreign direct investment up 309%, this reads as infrastructure being laid for a market expected to keep growing.
Whether that is good for you specifically depends on whether you needed financing in the first place. If you were buying cash anyway, nothing here changes your position.
Read next
- Buying Abu Dhabi property from the UK, including how non-resident lending actually works
- The Abu Dhabi Golden Visa through property, and why mortgages complicate it
- Sei Saadiyat, from AED 2.95m in the Cultural District
General information, not financial, mortgage, tax or legal advice, and not an offer to sell or a solicitation to buy. We are a licensed real estate brokerage, not mortgage advisors. This is a developing story and terms may change. Sources include Aldar and Modon announcements and reporting by The National, Khaleej Times and trade press, September 2026. Verify eligibility and terms directly with the developer and lender before relying on anything here. Property values can fall as well as rise.