Modon and ADIB widen access to off-plan homes

Modon Holding and Abu Dhabi Islamic Bank have agreed to offer eligible buyers financing of up to 75 per cent for homes under construction, opening a new route into Abu Dhabi’s expanding off-plan property market.

The financing programme will be available exclusively for future developments launched by Modon. It is designed to provide funding during construction rather than requiring buyers to wait until a property is completed or approaches handover before obtaining substantial bank finance.

Under the proposed structure, purchasers will pay 15 per cent of the property’s value during the construction phase and a further 5 to 10 per cent at handover. ADIB will finance up to 75 per cent of the value, subject to its eligibility criteria, affordability assessments and approval procedures.

The arrangement aims to reduce the amount of capital that buyers must commit during the early stages of a project. Off-plan payment schedules have traditionally required purchasers to fund a significant share of the price directly, with mortgage availability often limited until construction reaches an advanced stage.

The memorandum of understanding was signed in the presence of Modon Holding Group chief executive Bill O’Regan, Modon Real Estate chief executive Ibrahim Al Maghribi and ADIB Group chief executive Mohamed Abdelbary.

O’Regan said the product would allow a broader group of buyers to participate in new property launches as Abu Dhabi strengthens its position as an international investment destination. He said the partnership would support sustainable growth and reinforce confidence in the property market.

Abdelbary said financing products needed to develop alongside the capital’s property sector. Providing finance throughout the development period would make the buying process more accessible while supporting continued investment in residential construction, he added.

Al Maghribi said the agreement would extend Modon’s approach to innovation beyond community design and development. Easier access to finance would expand the pool of eligible purchasers for future projects and offer customers greater flexibility when planning a property acquisition.

The initiative arrives as off-plan sales play an increasingly important role in Abu Dhabi’s housing market. Residential sales reached about AED38.1 billion during the first quarter of 2026, with transactions involving properties under construction accounting for a large proportion of demand.

The wider market recorded AED142 billion in transactions during 2025, a rise of 44 per cent from the previous year. Transaction volumes increased 52 per cent to 42,814 deals. Sales and purchases generated AED99.4 billion, while mortgage transactions contributed AED42.7 billion.

Foreign direct investment in Abu Dhabi property rose 13 per cent to AED8.2 billion last year, involving investors from more than 100 nationalities. Investment zones attracted AED54.13 billion in foreign capital, an increase of 65 per cent, highlighting the role of international buyers in supporting new residential launches.

The financing partnership could also help developers convert buyer interest into completed sales by reducing dependence on large construction-linked instalments. For banks, financing approved projects during development offers access to customers earlier in the ownership cycle, although credit assessments and construction risks remain central to lending decisions.

Off-plan purchases carry risks that differ from acquisitions of completed homes. Delivery schedules can change, project specifications may be amended and the final market value can differ from the original purchase price. Buyers must also consider registration charges, service fees, insurance, profit rates and other expenses beyond the initial payment plan.

The Modon-ADIB programme therefore remains subject to individual customer eligibility and project approval. The companies have not disclosed the applicable profit rates, maximum repayment terms, income thresholds or whether the product will be offered to non-resident buyers.

The agreement follows a period of rapid expansion for Modon. The group recorded AED36.3 billion in property sales during 2025, including AED29.8 billion in Abu Dhabi. Group revenue reached AED13.8 billion, while net profit stood at AED3.9 billion and the revenue backlog rose to AED46 billion.