One of the questions we receive regularly from clients is whether it is possible to obtain financing for an off-plan property in Dubai.
The answer is yes, in certain cases. Off-plan financing is available through selected UAE banks, but this depends on the developer, the specific project, the construction progress and, of course, the buyer’s personal financial profile. When Can Off-Plan Financing Be Considered?
In general, the project should have reached at least 30% construction completion before a bank will consider financing. The bank will normally calculate the finance amount based on the lower of:
- the original purchase price; or
- the current market value of the property.
The maximum financing is generally up to 50% of the property value, subject to the bank’s final assessment and approval. This means that buyers should still be prepared to fund a substantial part of the purchase themselves. Which Developers May Be Eligible? Based on the current information available to us, off-plan financing may be considered for projects developed by:
- Emaar
- Dubai Holding, including Dubai Properties, Nakheel, Meraas and Meydan
- Majid Al Futtaim
- Al Wasl
- Aldar, for Dubai-based projects
- Sobha
- DAMAC
- Ellington
- Omniyat
- Binghatti
This does not mean that every project from these developers will automatically qualify. The bank will still review the individual project, the Dubai Land Department construction status and the Oqood registration.
Financing an Off-Plan Resale Property Financing may also be possible when purchasing an off-plan property from an existing owner rather than directly from the developer.
This is commonly referred to as an off-plan resale or secondary market transaction. Again, the project should generally be at least 30% completed and the bank will assess the developer, project status, purchase price and current valuation before confirming whether financing is possible.
Additional Conditions for Certain
Developers For projects by DAMAC, Ellington, Omniyat and Binghatti, the final payment due at handover may need to be at least 25% of the original purchase price. This should already be included in the developer’s payment plan. For other approved developers, financing may be assessed in line with the existing developer payment plan. Is There a Fixed List of Approved Projects? Not always. In some cases, the project does not need to appear on a fixed bank list in advance. The bank may assess it based on the latest construction progress registered with the Dubai Land Department and the available Oqood documentation. This is helpful because it means that financing may still be considered on a case-by-case basis. What Else Does the Bank Consider? Project eligibility is only one part of the application. The bank will also review matters such as:
- whether the buyer is a UAE resident or non-resident;
- monthly income and employment or business profile;
- existing financial commitments;
- nationality and country of residence;
- credit history;
- the property value and payment plan.
The exact requirements differ per bank. How NHBC Can Assist At NHBC, we receive many questions from clients who are purchasing property in Dubai and would like to understand whether financing is available. We can review the basic details of the property and introduce you to an experienced mortgage adviser who can assess your eligibility and confirm which banks may be suitable. It is always better to check this before relying on financing as part of your purchase plan, as bank policies and project eligibility can change.
Considering an off-plan purchase in Dubai and wondering whether financing may be available? Contact our team and we will help you take the next step.
Disclaimer: The above information is general in nature and may change. Mortgage approval, finance percentages and project eligibility remain subject to the bank’s policies, valuation and final approval.
