Aldar Properties has made a significant advancement in Abu Dhabi’s real estate sector by completing the first mortgage financing on an off-plan property under the newly established framework by the Abu Dhabi Real Estate Centre (ADREC). This framework allows customers who have paid at least 50% of the purchase price to secure a mortgage against their off-plan property, with the financing bank being formally named on the mortgage registration certificate prior to property handover, as reported by Economy Middle East.
This new approach provides customers with greater certainty regarding their financing terms, preserves liquidity during the construction phase, and eliminates the need to arrange a mortgage at the time of completion. It also offers an alternative to traditional financing methods, thereby expanding the range of financing options available to buyers.
Aldar Sets a New Precedent
Aldar’s completion of the first registration under this framework marks a pivotal moment for the Abu Dhabi real estate market. The initial transactions were supported by Abu Dhabi Commercial Bank (ADCB), in compliance with UAE Central Bank regulations that stipulate customers must have paid 50% of the property price to qualify for off-plan mortgage financing.
Ghazi Saeed Alateibi, Executive Director of the Real Estate Transaction Sector, noted that this registration illustrates the practical application of ADREC’s off-plan mortgage registration service. He emphasized that the service enhances transparency and provides clarity and protection for buyers, developers, and financial institutions.
Enhancing Market Accessibility
Aldar customers can access off-plan financing through its in-house mortgage advisory service, ‘Home Finance by Aldar’, which is offered without fees. This service simplifies the process of exploring financing options from a diverse range of participating banks, helping customers find the most suitable solutions.
Faisal Falaknaz, Chief Financial and Sustainability Officer at Aldar, highlighted that as Abu Dhabi evolves into a prominent global business and lifestyle hub, the real estate market is becoming increasingly attractive and sophisticated. He described the new off-plan mortgage framework as a crucial step towards improving market transparency and accessibility.
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