The debut of its first-ever plot finance product has been announced by the Abu Dhabi Islamic Bank (ADIB). Customers can use the programme to buy land as an investment or to achieve their dream of becoming a homeowner.
The deal enables customers to buy real estate or pay plot handover fees to own freehold residential plots in prestigious residential communities. It is open to both residents and non-residents.
In response to “growing demand” in land purchases from both nationals and locals, a fresh offering has been made. Since last year, land and property prices in the UAE have increased, and more people are looking to buy land as an investment or as a way to construct their own homes.
The value of the land plot may be financed up to 60%, and early settlement penalties may be waived up to 30% of the outstanding finance each year.
Sameh Awadallah, acting global head of retail banking, said: “Over the years, ADIB has introduced many innovative financing offerings that have been well-received by our customers. With more than one million customers banking with us, we have been able to leverage on our customer insights to bring new offerings that continue to support our customers. With the significant increase in people asking about purchasing property or buying their own land across the UAE, we decided to design a product that allowed both residents and UAE nationals to finance their lands.”
Al Dar Properties and Emaar Properties are two recent examples of developments that can take advantage of the very low-profit rates offered by ADIB Plot Finance.