Banks in the UAE are providing favorable financing to citizens and residents for properties under construction, with completion rates between 35% and 50%, through partnerships signed with local real estate developers. Bankers and real estate experts stated that these partnerships aim to meet the growing demand for mortgage financing, support buyers interested in purchasing properties in Abu Dhabi, and contribute to the swift completion of housing for citizens. They noted that the demand for mortgage financing increased by 10-15% last year and into the current year, driven by diverse projects offering units of various sizes that cater to the needs of local and expatriate families, as well as real estate investors. They anticipate that growth in both property purchase demand and bank lending will continue this year, fueled by population growth, rising demand, and limited supply. In detail, the CEO of «Medyalion Real Estate Investment», Masoud Al-Uwar, said: «The legal measures and regulations governing the real estate sector in Abu Dhabi protect the funds of banks, investors, and buyers. The recent increase in purchasing demand requires injecting more financing and liquidity, so agreements between banks and developers to provide financing upon reaching certain construction completion stages will support the market and boost the current momentum». He added that «off-plan sales, which are now common for many under-construction projects in Abu Dhabi, are governed by the existence of bank guarantee accounts that ensure execution, which is why many projects are sold quickly to both local and foreign investors. Moreover, government support for building citizens' housing creates a sense of security for banks if a citizen needs additional funds to complete their home according to specific specifications». He continued: «Amid the momentum in Abu Dhabi's real estate market, I expect the market to grow by 8-12% in 2026 due to population growth and a greater increase in demand than the current supply». He also noted that «some banks currently start financing from 35% construction completion in agreement with developers and in accordance with safeguards that protect all rights, which should encourage other banks to take the same step and not hesitate to provide financing, as long as there are no risks in granting it». On another front, banking expert Ahmed Arafat stated: «Some banks provide mortgage financing upon reaching construction completion rates starting from 35% or 50%, depending on each bank's policy, some are targeted only at citizens, and others at both citizens and residents, in agreement with real estate developers. This will increase the pace of financing and meet the rising demand, which ranges between 10-15%, due to the significant trend towards purchasing instead of renting among residents in Abu Dhabi». He added that the current year is witnessing the delivery of over 12,000 units in various projects in different locations in Abu Dhabi, in addition to the high demand from buyers for «off-plan» units in the projects offered for sale, all of which requires an increase in the volume of financing granted, which prompts real estate development companies to enter various partnerships with banks to organize and facilitate the provision of financing». In turn, real estate broker Shaima Sharif said: «Mortgage financing for units with 35% completion or more is only available through an agreement between the real estate developer and the bank. Currently, the market in Abu Dhabi greatly needs such agreements and partnerships to meet the increasing demand for financing and the purchase of residential units». She pointed out that «the diversity of projects in the Emirate of Abu Dhabi serves all segments of society, with areas starting from studios and one or two-bedroom apartments according to the target segment of the population, in addition to the availability of luxury villas and properties, all of which has created a great momentum and exceptional demand for Abu Dhabi's real estate, and it is expected that its upward trajectory will continue during the current year at a higher pace than last year, which witnessed record sales». Strong Performance for Abu Dhabi's Real Estate Market in 2025 The real estate market in the Emirate of Abu Dhabi achieved exceptional performance during 2025, reaching one of its highest growth rates in history, driven by increased local and international demand, expansion of residential projects, and the emirate's continued appeal as a stable investment destination. According to market data, the value of real estate transactions exceeded 140 billion dirhams last year, showing significant growth compared to 2024, while the number of transactions reached tens of thousands, including direct sales, financing deals, and off-plan transactions. The residential sector was the main driver of activity, with residential apartments accounting for the largest share in terms of the number of deals, followed by villas, especially in modern projects and integrated communities. Off-plan sales also emerged as a key element in the market, supported by investor confidence in major developers and delivery plans. On a regional level, Reem Island topped the list of the most active areas in terms of the number and value of deals, followed by Yas Island and Saadiyat Island, amidst continuing demand for projects located near vital facilities and seafronts. The market also witnessed significant growth in foreign investments, with investors from multiple nationalities benefiting from incentive legislation, the freehold ownership system, and the stability of the emirate's economic environment. This strong performance reflects the resilience of Abu Dhabi's real estate market and its growing role in supporting the local economy, with expectations for the momentum to continue in the coming period, especially with the launch of new projects and infrastructure expansion.
