New Launch - India Real Estate Report 2026.
Two UAE banks have launched new financing products aimed at off-plan property buyers. The products address a gap that has long existed in the market.
Until now, most mortgage financing in the UAE was structured around the handover stage. Buyers purchasing off-plan were largely left to fund developer milestone payments from their own resources during construction.
Dubai Islamic Bank and Abu Dhabi Commercial Bank are now offering structured alternatives.
Dubai Islamic Bank: Milestone-Linked Finance
DIB has launched a Shariah-compliant off-plan home finance product. It is available to UAE nationals, residents and non-residents.
The bank releases funds to developers progressively, aligned to construction milestones. During the construction period, buyers pay only the profit component.
That amount increases as further payments are made to the developer.
- Financing: up to 50% of the property value
- Full monthly instalments principal plus profit begin at handover or within 24 months of taking the finance, whichever comes first
- Available for freehold properties from developers across the UAE
- DIB is exploring developer partnerships to expand access across major freehold projects
Also Read: Global Partners Brings Westin and Renaissance to Dubai Creek
ADCB: Pre-Approved Financing With Ellington Properties
ADCB has partnered with Dubai-based developer Ellington Properties to offer pre-approved financing for both off-plan and ready properties. The terms differ slightly between the two purchase types:
- Off-plan: pre-approved financing of up to 50% of property value
- Pre-approval valid for 12 months, renewable annually until handover
- For a limited period: financing rates starting at 3.49% per year, fixed for three years
- Processing and valuation fees waived during the promotional period
- Covers Ellington's residential developments across Dubai
Why This Matters for Buyers
Off-plan properties continue to account for a large share of Dubai's residential transactions. Buyers are attracted by developer payment plans.
But those plans have typically required buyers to fund construction calls themselves while waiting for mortgage financing to kick in at handover. The new products change that timeline.
Also Read: Saudi Arabia, Kuwait Drive GCC Islamic Banking Growth
With financing secured early and linked to construction progress, buyers gain visibility over how much funding is available at each milestone.
It removes one of the more stressful aspects of an off-plan purchase the uncertainty of whether financing will be in place when the developer calls for payment.
It also reduces the risk of a buyer being unable to complete a transaction simply because their financing was structured around a handover date that has shifted.
The Broader Market Context
The expansion of construction-period financing products comes at a time when Dubai's off-plan pipeline is substantial. Tens of thousands of units are due for delivery through 2026 and beyond.
Mortgage transactions in Abu Dhabi alone rose 7.2% to 22,500 in H1 2026. Banks are clearly looking to capture a larger share of a market that has historically been dominated by cash buyers and developer payment plans.
For buyers who want the benefit of off-plan pricing without tying up their own capital for the full construction period, these products represent a meaningful new option.
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