MAK Developers

Not long ago, buying property in Dubai meant paying up front or waiting for a home to be built. Today, off-plan property mortgage in Dubai is transforming how people own homes. This new approach lets ordinary buyers invest early in properties under construction, bridging the gap between dreaming and owning.

An off-plan property loan in Dubai is a type of home loan for a property that is still under construction. You pay a portion during construction, and the bank finances the rest when the property is ready. 

This means you can secure a future home with a smaller initial payment, while the bank helps fund the completion. It’s a game-changer that has made off-plan properties wildly popular in the UAE.

How Off-Plan Property Mortgages Work?

Off-plan mortgages work a bit differently from loans for ready homes. Here’s how they function in Dubai:

• Higher Down Payment: You typically must pay about 50% of the property price upfront to the developer before the bank steps in. Banks usually finance up to half the value of an off-plan property, as per UAE regulations. (By law, any off-plan property mortgage in UAE is capped at 50% LTV – loan-to-value – due to the higher completion risk.) 
• Staged Payments: The bank doesn’t hand over all the money at once. Instead, it releases the loan in phases tied to construction milestones. As the building progresses (50% complete, 70% complete, etc.), the bank pays its share in installments to the developer. 
• Delayed Repayments: A significant relief for buyers is that mortgage repayments typically begin after the property is handed over. You usually begin paying your EMIs once you receive the keys. This eases your financial burden during the construction period. 
• Interest Rates: Off-plan mortgage rates can be slightly higher than those for ready homes (since the bank is taking more risk on an unfinished project). For example, if the average home loan in mid-2025 is around 3.9–5% interest, an off-plan loan might start a bit higher than that. However, UAE banks have become highly competitive as some offer mortgages at rates below 4% to attract off-plan buyers. Rates can be fixed for a few years or variable (linked to EIBOR, the UAE’s base rate).

Who Qualifies for an Off-Plan Mortgage?

The good news is that both UAE residents and expats are eligible for off-plan property mortgages. Banks will consider your profile to decide if you qualify:

• Minimum Income: Most banks require a steady income with a minimum monthly salary of around AED 15,000. This shows you can afford the future payments. Both salaried employees and self-employed people can apply, as long as they meet income criteria. 
• Age and Employment: To qualify for a home loan, you must be an adult (typically 21 years or older). There’s no fixed maximum age by law now. It depends on the bank’s policy, but the loan tenure usually should end by retirement age. Lenders also prefer you to have stable employment or business history. For example, you have at least 6 months with your current employer or 2+ years of business track record. 
• Credit History: Banks will check your credit score and existing debts. By regulation, your debt-burden ratio (DBR) – the portion of income that goes to paying debts – cannot exceed 50%. In simple terms, all your loan payments (including the new mortgage) should be at most half your income. A good credit score (around 700+ in the UAE’s credit bureau) improves your chances. 
• Down Payment Ability: Since you need to fund 50% of the property during construction, you must show you can pay that from other sources. Expats and UAE nationals alike must put up at least half the property value for an off-plan purchase due to the LTV limit. This is higher than the down payment for ready homes, where expats can pay 20-25% upfront.

In summary, if you’re a resident or an expatriate with a stable income, good credit, and can arrange the hefty down payment, you likely qualify for an off-plan mortgage. Banks will finance the rest and help turn your off-plan booking into your future home.

Financial Benefits of Off-Plan Mortgages

Why do buyers flock to off-plan deals? There are several financial benefits:

• Lower Entry Price: Off-plan properties are often priced lower than ready homes in the same area. Developers usually offer attractive launch prices and early-bird discounts. This means you get a better price per square foot by buying early, giving you more value and potential equity once the project is done. 
• Flexible Payment Plans: Developers in Dubai commonly offer staged payment plans for off-plan purchases. For example, you might pay 50% during construction in intervals (10% now, 10% next year, etc.) and 50% at handover. These extended payment schedules make it easier to manage cash flow compared to paying full price upfront. Some developers even extend payments post-handover (e.g., 60-40 plans) to ease the burden. 
• Capital Appreciation: Perhaps the biggest draw is that by the time the property is completed, it often appreciates in value. Dubai’s market has been rising, and by the time of completion, it could be worth more than what you paid. Buyers in 2025 are optimistic because prime real estate values in Dubai are projected to increase by up to 10% this year. 
• Lower Taxes and Fees: Dubai imposes no property tax or capital gains tax on real estate. So any value gain is yours to keep, which amplifies the benefit of buying off-plan. (You do pay a one-time 4% DLD registration fee, but that’s standard for any property purchase in Dubai.) 
• Developer Incentives: In 2025, competition among developers is high. Many offer incentives, such as waiving fees, providing free upgrades, or even contributing to your closing costs. Some tie-up with banks to offer special mortgage rates or cover processing fees for buyers. This makes off-plan deals even sweeter.
  

Why 2025 Is an Ideal Time to Buy Off-Plan?

Dubai’s property market is booming, and 2025 offers a perfect window for off-plan buyers. Several factors align in your favor:

• Competitive Mortgage Rates: After a spike in global rates in 2022–2023, UAE mortgage rates have settled in 2025. Banks are even cutting rates below the central bank benchmark to win customers. You can secure attractive interest rates now. For instance, some banks fixed rates around 3.99% for 3 years with salary transfer. Stable or falling interest rates mean lower monthly payments and bigger loan eligibility for you. 
• Strong Real Estate Growth: Dubai’s real estate prices are on an upswing. As mentioned, prime areas may see 9-10% price growth in 2025. Rental yields are high (often 6-9% in popular communities), and demand is surging. Buying an off-plan home now positions you to gain from this growth. It’s a chance to ride the wave with minimal upfront investment. 
• Bank Support for Off-Plan: More banks are financing off-plan purchases than before. In the past, only a few big banks would fund under-construction projects (and usually only with top-tier developers). Now, banks see the opportunity and are stepping in to finance the final installments once 50% is paid. They have dedicated mortgage advisors and even digital platforms to streamline off-plan financing. In short, lenders are keen to lend, not just for ready villas, but also for off-plan apartments in new communities. 
• Government Incentives: The UAE government has rolled out programs encouraging home ownership. For example, a First-Time Home Buyer program offers discounted prices and tailored mortgages for select new projects. Dubai also eased Golden Visa property investment rules (no more AED 1M minimum down payment requirement), which can be an added perk if you invest in property. These initiatives make 2025 a buyer-friendly year.

In summary, 2025 presents a combination of low financing costs, rising property values, and supportive policies that make a smart off-plan purchase a viable option.

Top Banks for Off-Plan Property Mortgages in 2025

Not all banks finance under-construction properties, but several leading UAE banks do offer off-plan mortgages (often limited to approved developers). Here’s a comparison of 3 banks offering off-plan home loans and their key terms (as of 2025):

• Emirates NBD: Finances up to 50% of the off-plan property value. Fixed interest rates starting from 4.49% per annum for approved projects with a loan tenure of up to 25 years. 
• ADCB (Abu Dhabi Commercial Bank): Off-plan loans up to 50% LTV. Variable rates from 3.99% (linked to EIBOR) for eligible developments. Offers hybrid fixed rates, too. Typically, a salary transfer is required for the best rates. 
• Dubai Islamic Bank (DIB): Sharia-compliant off-plan home finance up to 50%. Profit rates around 4.75% p.a. on reducing balance. Available for select developers under their Forward Ijarah program. The minimum salary for expatriates is AED 12,000 (for UAE nationals, AED 10,000).

Each bank has its own criteria and list of approved projects. It’s wise to check with the bank or a mortgage broker to see which banks will finance your chosen off-plan development. 

Additionally, note that interest rates can be fixed for a specified period and then transition to a variable rate. Always compare the effective interest rate and any applicable fees (such as processing fees, valuation fees, etc.) before making a decision.

Frequently Asked Questions (FAQs)

Q1: Can I get 100% financing for an off-plan property?
No, banks only finance up to 50% of the off-plan property value. You must pay the other 50% to the developer before getting the mortgage.

Q2: How long does mortgage approval take?
The process usually takes 2 to 4 weeks. Banks need time to verify your documents and check the property details.

Q3: Can expats get off-plan mortgages in Dubai?
Yes, both UAE nationals and expats can apply. Expats need valid residency visas and stable employment in the UAE.

Q4: What happens if the developer delays construction?
Your mortgage doesn’t start until handover. You continue to pay the developer according to the original plan. The bank releases the funds when the property is completed.

Q5: Are off-plan properties good investments?
They can offer excellent returns. You buy at current prices while values increase. Rental yields in Dubai make them attractive for investors.