UAE banks roll out easier financing options for off-plan homebuyers

26/08/2026 04:13 AST

UAE homebuyers are getting more options to finance off-plan properties during the construction phase, with banks expanding products that allow buyers to secure financing and make payments in line with developer milestones.

Dubai Islamic Bank (DIB) has launched a new off-plan home finance product that allows eligible UAE nationals, residents and non-residents to finance up to 50 per cent of a property's value, while Abu Dhabi Commercial Bank (ADCB) has partnered with Ellington Properties on a similar pre-approved financing solution for the developer's off-plan and ready properties.

The moves come as off-plan sales continue to account for a large share of transactions in Dubai's residential market, giving buyers more financing options before properties are handed over.

Under DIB's new Shariah-compliant financing product, the bank will release funds to developers progressively according to construction milestones. Buyers pay only the profit component during the construction period, with the amount increasing as further payments are made to the developer.

The full monthly instalment, including principal and profit, starts when the property is handed over or within 24 months of taking the finance, whichever comes first.

DIB said the product is available for freehold properties from developers across the UAE and offers financing of up to 50 per cent of the property value.

The bank is also exploring partnerships with developers to expand access to the financing option across major freehold projects.

ADCB offers renewable pre-approval
Separately, ADCB has partnered with Dubai-based developer Ellington Properties to offer eligible buyers pre-approved financing for both off-plan and ready properties.

For off-plan purchases, buyers can receive pre-approved financing of up to 50 per cent of the property value. The pre-approval is valid for 12 months and can be renewed annually until handover, allowing buyers to secure financing for milestone and handover payments as construction progresses.

For a limited period, eligible buyers can also access ADCB financing rates starting at 3.49 per cent a year, fixed for three years, with processing and valuation fees waived, the bank and developer said. The partnership covers Ellington's residential developments in Dubai.

The two offerings differ in how financing is structured, but both are aimed at addressing one of the challenges of buying a property before completion: funding payments over the construction period rather than only at handover.

For buyers, this can provide greater visibility over how much financing is available as developers call for payments at different construction milestones.

The expansion of such products comes as off-plan properties remain a significant part of Dubai's housing market, with buyers attracted by payment plans and developers continuing to launch projects across the emirate.

Khaleej Times