Financing for off-plan property

The UAE Central Bank applies a flat 50% LTV cap to off-plan property for every buyer type, reflecting the higher risk of financing a property that isn’t yet built. In practice, most current products also require you to have already paid around 50% of the price from your own funds before the bank steps in, so the mortgage typically covers the tail end of the payment plan rather than a large share of the total price.

Most banks only begin mortgage disbursement at or near handover — before that, you’re generally paying the developer directly according to the project’s payment plan.

This depends on the specific project and bank — some newer financing options allow earlier construction-phase financing on eligible projects, which we track and flag when relevant. Banks typically won’t start financing until the project reaches somewhere between 30% and 50% construction completion, and the exact threshold depends heavily on the specific bank-developer partnership rather than being a single fixed rule.

Handover delays can affect your financing timeline and the mortgage offer’s validity — we help you understand this risk before you commit financing to a specific off-plan project.

No — off-plan lending policies vary significantly by bank and even by specific project, which is exactly why comparing lenders matters more for off-plan purchases than for ready homes. Most banks only finance specific, pre-approved developers and projects, so if yours isn’t on a bank’s approved list, that bank’s off-plan route is effectively closed until handover, at which point a standard ready-property mortgage applies instead.

It depends on your cash flow and risk tolerance, not just which is cheaper on paper. An off-plan payment plan spreads cost over the construction period, usually without bank involvement or interest, but ties up your capital for years before you have a usable asset. A ready property with a mortgage costs more upfront but gives you an income-producing or livable asset immediately. Buyers focused on capital growth often lean off-plan; buyers who want rental income or to move in soon usually lean ready.

The bank finances against its own valuation at the time of handover, not the price you agreed years earlier with the developer. If your unit was priced at AED 2 million and the bank’s handover valuation comes in at AED 1.85 million, your mortgage is based on the lower figure, and the shortfall has to come from your own cash. In a market where prices have moved since you signed, it’s worth budgeting for this possibility rather than assuming the original price will hold.