Dubai’s real estate market has long been built on the sale of so-called off-plan properties, units purchased before the project is completed. This model allows investors to enter with phased payments, but it also comes with one key drawback: bank financing typically arrives only at the very end.
A new partnership between Dubai Holding Real Estate and Emirates NBD is partially changing this process. Mortgage financing is now moving closer to the initial purchase decision.
When buying a property under construction, the buyer does not pay the full amount upfront. The developer sets a payment plan that usually splits the price into several stages. A portion is paid upon signing, further installments follow during construction, and the remainder is paid upon completion.
In practice, this means that over two to four years, buyers typically pay 40–70% of the property price from their own funds. The remaining amount is settled at handover.
In this model, mortgages only came at the very end. The bank entered the transaction once the project was completed and the property could serve as collateral.
Buyers therefore faced two main uncertainties during most of the construction period. First, they didn’t know whether they would qualify for a mortgage. Second, they had no certainty about the terms, especially interest rates, which could change over time.
At the same time, a significant portion of equity had to be available before bank financing even became an option.
The new model allows buyers to apply for mortgage approval earlier, during construction. This is not immediate funding but a pre-approval.
The conditions are clearly defined. The buyer must have paid at least 50% of the total property price, and the project must be at least 30% completed.
At this stage, the bank can assess the client’s creditworthiness and confirm whether, and under what terms, it will provide financing for the remaining amount.
It’s important to distinguish two things. While the mortgage is arranged earlier, the funds are still released only upon or shortly before project completion.
Buyers continue to pay installments from their own funds during construction. The difference is that they gain clarity in advance on how they will finance the final portion.
A buyer purchases a property for AED 1,000,000.
The developer sets a payment plan where the buyer pays 60% during construction, i.e., AED 600,000. Once the 50% threshold is reached and construction has progressed sufficiently, the buyer can apply for mortgage pre-approval.
The bank confirms it is ready to finance the remaining AED 400,000. The funds are released upon completion, but the buyer gains certainty months or even years in advance.
This model is not market-wide. It applies to residential projects within the Dubai Holding Real Estate portfolio, specifically:
It is available to clients who meet the bank’s conditions, including both residents and international buyers.
The effect will vary across projects. In payment plans where buyers reach the 50% threshold only shortly before completion, the process won’t shift significantly.
However, in projects with higher construction-stage payments, buyers can secure mortgage certainty much earlier. This directly impacts financial planning and future investment decisions.
This move reflects a broader shift in Dubai’s market toward greater transparency and predictability. While off-plan purchases remain based on phased buyer financing, they are now complemented by the option to secure bank financing for the final portion in advance. It also aligns with the wider Dubai 2040 Urban Master Plan, aimed at improving housing accessibility, market stability, and clearer rules for both local and international investors.
Interested in more information? Feel free to reach out to us.
