Buyer guide · Abu Dhabi
Off-Plan Mortgages in Abu Dhabi
Abu Dhabi buyers have long been told the same thing: you cannot mortgage a property that has not been built. That is changing, and the change is worth understanding before you commit capital.
Last updated 16 September 2026
Can you get a mortgage on an off-plan property?
Yes — but it has been the exception rather than the rule, and the terms matter more than the answer.
A conventional mortgage is secured against a completed, registered property the bank can value and, if necessary, repossess. An off-plan unit is a contract to receive a property in the future. That is a different risk, so lenders have historically either declined off-plan entirely, or lent only against projects from developers they have pre-approved, at lower loan-to-value ratios than for ready homes.
The practical consequence for Abu Dhabi buyers has been that off-plan purchases were largely cash purchases, spread over a developer payment plan. You paid instalments during construction out of your own funds, and only considered a mortgage at handover — by which point the full balance was due.
Why Abu Dhabi is unusual
Abu Dhabi's ready-property market is predominantly cash. At Modon's September 2026 launch briefing, citing ADREC data for the first half of 2026, the split was put at 39% mortgage-financed against 61% cash.
Set that against comparable mature markets, where mortgage penetration sits far higher — the United Kingdom and France around 65%, the United States around 68%, Spain around 72% — and the gap is obvious. Modon framed it as roughly twice the room for mortgage-financed growth.
The direction of travel is already visible in the transaction data. ADREC recorded 8,876 mortgage transactions in the first half of 2026, worth AED 26.7 billion, up 33% year on year.
| Market | Share of purchases that are mortgage-financed |
|---|---|
| Abu Dhabi (ready market) | 39% |
| United Kingdom | 65% |
| France | 65% |
| United States | 68% |
| Spain | 72% |
Source: ADREC data for H1 2026, as presented by Modon Properties at the Wadeem Gardens launch briefing, September 2026.
What an off-plan mortgage changes for the buyer
The significant number in any off-plan purchase is not the headline price. It is how much of your own money you must produce before you hold the keys.
On a traditional Abu Dhabi payment plan of 40/60, a buyer of an AED 8.7 million villa funds AED 3.48 million across the construction period. On a 50/50 plan, AED 4.35 million. That capital is committed for years, in a property generating no income, before handover.
Where a bank finances part of the purchase during construction, the buyer's own outlay falls sharply — and the balance becomes a financing question rather than a liquidity one.
How the Wadeem Gardens structure works
Wadeem Gardens, Modon's villa district on Hudayriyat Island launched in September 2026, is structured as 25% from the buyer and 75% financed by Abu Dhabi Islamic Bank.
The buyer's 25% is paid in five instalments of 5%, spread from reservation to month 48. The remaining 75% falls due at month 54 — April 2031 — and is subject to off-plan mortgage approval.
At the launch briefing Modon described ADIB drawing that 75% in two parts, 20% during construction and 55% at month 54, combined into a single facility. Modon's own published payment schedule shows it as a single month-54 line; both describe the same 75%.
| Share | Milestone | Date | Paid by |
|---|---|---|---|
| 5% | Down payment | On reservation | Buyer |
| 5% | Month 8 | June 2027 | Buyer |
| 5% | Month 14 | December 2027 | Buyer |
| 5% | Month 20 | June 2028 | Buyer |
| 5% | Month 48 | October 2030 | Buyer |
| 75% | Month 54 | April 2031 | ADIB, subject to approval |
On the entry-level four-bedroom villa at AED 8.7 million, the buyer's 25% is AED 2,175,000 — five instalments of AED 435,000. On a 40/60 plan the same villa would ask AED 3.48 million before handover.
What has not been published
No profit rate, tenor or monthly payment figure has been published for this facility. Any specific monthly number you see quoted for Wadeem Gardens is somebody's illustration, not a bank's offer.
Approval is individual. A financing structure being available on a project does not mean it is available to every buyer — income, existing liabilities, residency status and the bank's own criteria all apply, and the payment schedule itself states that the 75% is subject to off-plan mortgage approval.
Treat the structure as the reason to have the conversation with the bank, not as a substitute for having it.
How Abu Dhabi payment plans compare
Across Modon's Hudayriyat communities, Wadeem Gardens asks the least from the buyer before handover.
| Community | Plan | Buyer funds before handover |
|---|---|---|
| Wadeem Gardens | 25 / 75 | 25% |
| Al Naseem Community | 40 / 60 | 40% |
| Nawayef East | 40 / 60 | 40% |
| Hudayriyat Golf Estates | 40 / 60 | 40% |
| Bashayer | 50 / 50 | 50% |
Common questions
Can I get a mortgage for an off-plan property in Abu Dhabi? +
It is possible but not universal. Banks have historically been cautious about lending against a property that does not yet exist, and where they do lend it is usually only on projects from developers they have pre-approved. The structure at Wadeem Gardens, where Abu Dhabi Islamic Bank finances 75% of the purchase, is an example of a developer arranging that financing in advance. Approval still depends on your individual circumstances.
What is an off-plan property? +
An off-plan property is one you buy before it is built, or while it is under construction. You purchase against approved plans and specifications, pay in instalments tied to construction milestones or calendar dates, and take handover on completion. In Abu Dhabi, off-plan sales are regulated by ADREC and buyer funds are held in project escrow accounts.
How much do I need to pay upfront for Wadeem Gardens? +
The reservation payment is 5% of the purchase price. On the four-bedroom villa from AED 8.7 million that is AED 435,000; on the five-bedroom from AED 10.2 million, AED 510,000; on the six-bedroom from AED 11.6 million, AED 580,000. Four further 5% instalments follow, ending in October 2030.
What fees apply on top of the purchase price? +
Abu Dhabi property transactions carry a registration fee payable to ADREC, plus a DARI system fee. Rates are set by the authority and can change, so confirm the current figures with ADREC or your conveyancer before budgeting. Mortgage registration, valuation and any bank arrangement fees are separate and depend on the lender.
What profit rate will ADIB charge on the 75%? +
No rate has been published. Abu Dhabi Islamic Bank has not released a profit rate, tenor or monthly payment figure for this facility, and the payment schedule states only that the 75% is subject to off-plan mortgage approval. Any specific monthly figure circulating for Wadeem Gardens is an illustration rather than a quoted offer.
Do UAE Nationals get different terms? +
Modon offers UAE Nationals a 5% rebate on Wadeem Gardens. It is non-transferable. The payment schedule and the financing structure are otherwise as published.
Still deciding?
Register your interest and someone from the team will come back to you with current availability, the full payment schedule, and a straight answer to whatever this guide did not cover.