Buying off-plan has always come with one obvious catch: you are paying for something that does not exist yet. Developers ask for installments tied to construction milestones, and until now, most buyers have had to fund those payments themselves, out of savings, while waiting for a bank loan to become available closer to handover.
That gap is starting to close. Two of the UAE’s major banks have recently rolled out new financing products built specifically for off-plan buyers, and the shift changes the maths for anyone considering a purchase before completion, as reported by Khaleej Times.
Dubai Islamic Bank: Financing During Construction
Dubai Islamic Bank (DIB) has introduced a Shariah-compliant financing product aimed directly at off-plan purchases. The structure is designed to follow the construction timeline rather than sit outside it.
- Finances up to 50% of the property value.
- Open to UAE nationals, residents and non-residents.
- Funds are released progressively, in line with construction milestones.
- Buyers pay only the profit component during construction.
- Full monthly installments, covering both principal and profit, begin at handover or within 24 months, whichever comes first.
- Available on freehold properties across the UAE.
ADCB and Ellington: Pre-Approved Finance Until Handover
Abu Dhabi Commercial Bank (ADCB) has taken a different route, partnering directly with Dubai developer Ellington Properties to pre-approve financing for buyers on Ellington’s residential developments.
- Pre-approved financing of up to 50% of the property value.
- Pre-approval holds for 12 months and can be renewed annually through to handover.
- Limited-time rates from 3.49% per year, fixed for three years.
- Processing and valuation fees waived.
Why This Is a Big Change for Off-Plan Buyers
These products could help to remove one of the biggest barriers to buying off-plan: having to cover construction payments largely from your own cash.
With DIB, eligible buyers can access finance as construction progresses, potentially reducing the amount they need to fund themselves during the build. ADCB’s partnership with Ellington gives eligible buyers greater certainty by allowing them to secure pre-approved finance earlier and renew it each year until handover.
The products work differently, but both allow buyers to plan their purchase with a clearer understanding of how much finance may be available and when they can access it. For some buyers, that could make an off-plan purchase possible much sooner than they expected.
What This Could Mean for Your Off-Plan Purchase
More financing options could give buyers greater flexibility when choosing an off-plan property. Instead of limiting your search to projects you can fund entirely through savings and a developer payment plan, you may now have more ways to structure the purchase during construction.
The right option will depend on the property and your eligibility. If you are exploring off-plan opportunities in Dubai, our mortgage team can explain which financing options may be available to you.
You can also use our mortgage calculator to get an initial idea of the numbers before speaking with the team.
Finding the Right Off-Plan Property
Finance is only one part of an off-plan purchase. The bigger decision is choosing the right property, developer and payment plan for what you want to achieve.
Our off-plan team can help you make sense of the options and narrow them down based on what you are actually looking for. We understand how different projects and developers compare and can guide you through the details that matter, from the location and payment plan to the developer’s track record.
Learn more about why buyers work with White & Co or speak to our team about the right opportunities and financing options for you.
Call: +971 58 599 1153
Email: india.moody@whiteandcogroup.com
Source: Khaleej Times – UAE banks roll out easier financing options for off-plan homebuyers.
Disclaimer: Financing products, rates and eligibility criteria may change. Buyers should confirm the latest terms directly with the relevant lender.