DAMAC Properties and ADIB Partner to Facilitate Home Ownership for UAE Residents

Dubai’s real estate sector continues to evolve, offering buyers and investors innovative financing solutions. DAMAC Properties, a leading Dubai-based developer, has partnered with Abu Dhabi Islamic Bank (ADIB) to ease home financing for offplan buyers. This strategic alliance allows buyers to access mortgage financing once their chosen project reaches 35% completion—lower than the traditional 50% threshold.

This move significantly enhances investment opportunities in Dubai’s real estate market, making home ownership more accessible for residents and investors. In this blog, we explore the key details of this partnership, the benefits for buyers, and its impact on Dubai’s property market.

The DAMAC-ADIB Partnership: A Game Changer for Offplan Buyers

Traditionally, banks in the UAE require offplan properties to be at least 50% complete before providing mortgage financing. However, DAMAC Properties and ADIB have introduced a new financing structure, lowering this threshold to 35%.

Key Highlights of the Partnership

• Lower Completion Threshold: Buyers can now access ADIB mortgage financing once their selected DAMAC property reaches 35% completion instead of the usual 50%.
• Flexible Down Payment Requirement: Buyers need to make a 50% down payment to DAMAC to qualify for an ADIB mortgage.
• Applicable to Multiple Projects: This partnership applies to several high-demand DAMAC developments, including:
  • Cavalli Tower (Al Sufouh 2)
  • DAMAC Lagoons (Dubailand)
  • DAMAC Hills 2
• Improved Affordability: The move aligns with declining UAE mortgage rates following interest rate cuts by the US Federal Reserve.

Why This Partnership Benefits Homebuyers and Investors

Dubai’s offplan property market has been one of the strongest drivers of real estate investment. The DAMAC-ADIB partnership makes purchasing offplan properties more convenient, reducing the financial burden on buyers during the construction phase.

1. Reduced Financial Pressure

Since mortgage financing is now available at 35% completion, buyers do not have to invest a significant portion of their own funds upfront. This increases liquidity and provides buyers with more financial flexibility.

2. Lower Interest Rates

The partnership comes at a time when UAE mortgage rates are softening, thanks to multiple interest rate cuts by the US Federal Reserve in 2024. Homebuyers can take advantage of lower borrowing costs, making mortgage repayments more affordable.

3. Access to Prime DAMAC Properties

DAMAC Properties is known for its high-end developments. The availability of bank financing for offplan buyers at an earlier stage makes luxury real estate more accessible to a broader range of investors.

4. Increased Investment Opportunities

Investors looking to benefit from Dubai’s booming real estate market can now enter the market with a smaller initial capital requirement, making it easier to diversify their property portfolio.

Impact on the UAE Real Estate Market

The introduction of offplan financing at 35% completion could set a new precedent in Dubai’s real estate sector. Other major developers may soon follow DAMAC’s lead, forming similar partnerships with banks to attract more buyers.

1. Boost in Offplan Sales

This initiative is expected to increase the demand for offplan properties, as buyers now have access to mortgage financing much earlier in the construction cycle.

2. Increased Buyer Confidence

The availability of financing options enhances trust among buyers, particularly those hesitant about purchasing offplan properties due to financial constraints.

3. Strengthening Dubai’s Position as a Global Investment Hub

Dubai has always been a prime destination for real estate investors. By introducing more flexible financing options, the emirate is further solidifying its reputation as a favorable market for property investment.

How to Avail Mortgage Financing Under the DAMAC-ADIB Partnership

Step 1: Select an Eligible DAMAC Property

Buyers can choose from multiple high-end DAMAC projects that have crossed the 35% completion threshold.

Step 2: Make a 50% Down Payment

The buyer must provide DAMAC with a 50% or more down payment to qualify for mortgage financing.

Step 3: Apply for an ADIB Mortgage

Once the down payment is made, the buyer can approach ADIB for mortgage approval and finalization.

Step 4: Secure Ownership

Upon mortgage approval, buyers can finalize the property purchase while benefiting from competitive interest rates.

What’s Next for Offplan Home Financing in Dubai?

With DAMAC and ADIB pioneering this initiative, other developers and financial institutions may soon follow suit. The shift towards more flexible mortgage financing could:

• Encourage more banks to lower their offplan financing threshold
• Provide more incentives for first-time homebuyers
• Strengthen Dubai’s already thriving offplan property market

Conclusion

The DAMAC-ADIB partnership marks a significant shift in Dubai’s real estate financing landscape. By lowering the mortgage eligibility threshold to 35% project completion, homebuyers and investors now have greater flexibility and financial ease when purchasing offplan properties.

With mortgage rates softening and new financing solutions emerging, now is an excellent time for residents and investors to explore opportunities in Dubai’s booming real estate market..