Mashreq Launches Off-Plan Home Loan for UAE Residents
Mashreq has introduced a new off-plan home loan product for UAE residents, expanding its mortgage offering into the under-construction property segment. The launch comes as demand for off-plan financing continues to grow in the country, with the segment accounting for roughly 70% of Dubai property market transactions in 2025.
The new financing solution is designed for buyers purchasing substantially progressed under-construction properties. According to the bank, the product aims to provide a more structured way for residents to finance homes that are still being developed, while also supporting cash flow through flexible repayment options.
Key Features of the Product
Mashreq said the loan includes zero pre-approval fees and repayment tenures of up to 25 years. The structure is intended to give eligible buyers greater flexibility when arranging financing for off-plan property purchases.
However, the offering is restricted to selected projects from leading developers. In addition, the development must have an expected handover within 24 months to qualify for financing. The property must also have reached at least 35% construction completion, while the buyer must have already paid at least 50% of the property’s transaction value.
Positioning in Mashreq’s Mortgage Portfolio
The new off-plan home loan adds to Mashreq’s existing mortgage products for ready properties across the UAE. By extending its lending capabilities into a fast-moving area of the property market, the bank is seeking to address a financing need that has become increasingly important among homebuyers and investors.
Fernando Morillo, Group Head of Retail Banking at Mashreq, said the launch reflects broader changes in how customers interact with banking and financial services in the UAE.
“As the UAE continues to strengthen its position as a global destination for investment, the way customers engage with banking and financial services is evolving rapidly,” Morillo said.
Market Context
The UAE property market has seen sustained interest in off-plan transactions, particularly in Dubai, where such purchases represented about 70% of total property market transactions in 2025. Mashreq’s product is positioned within this trend, offering financing for developments that are already significantly advanced but not yet completed.
The loan’s eligibility criteria suggest a cautious approach to risk management, with restrictions on developer selection, construction progress, and buyer contribution. These conditions may help the bank support demand while maintaining lending discipline in a segment closely tied to project delivery timelines.
Industry Analysis
Mashreq’s launch highlights the growing intersection between banking and proptech in the UAE’s real estate market. As off-plan purchases remain a major driver of transactions, financing products tailored to construction-stage properties are likely to become increasingly relevant for both end-users and investors. The move also signals that lenders are adapting their mortgage strategies to meet changing buyer preferences in a market where property development cycles and payment structures play a central role.
By offering an off-plan home loan with long tenures and no pre-approval fees, Mashreq may strengthen its appeal to residents seeking accessible entry points into the property market. At the same time, the product’s strict eligibility conditions indicate that such offerings will likely remain targeted toward lower-risk, later-stage developments rather than the earliest phases of construction.
