Answers
Can I get a mortgage to buy land or build a villa?
A short answer, with the article it comes from.
The answer
Yes. The Central Bank's definition of a mortgage loan includes loans "for the purpose of constructing, purchasing or renovating a house" and loans for "the purchase or the development of land for these purposes". For construction, your own money is spent first, and the bank pays the contractor only against confirmed milestones.
CBUAE Circular 31/2013 Articles 1, 2.1, 2.5 and 5, checked 2 October 2026.
Article 1 of the circular defines a mortgage loan as one "collateralized against a residential property granted for the purpose of constructing, purchasing or renovating a house for owner occupier or investment purposes", which "also includes loans granted for the purchase or the development of land for these purposes". The same loan to value caps and debt burden limit apply.
Article 2.1 sets the order of payment. Where stage payments are financed, the lender "must first use owner's equity portion of the construction price to pay the developer/contractor", and payments follow completion milestones "physically confirmed either by the mortgage loan provider or by a suitably qualified professional agent" independent of borrower and contractor.
For UAE nationals building on gifted land, Article 2.5 requires confirmation of the gift from the relevant Diwan or Housing Program and from the land department. Where a UAE national's loan to build or buy a home to live in sits under a local housing programme backed by the government, Article 5 allows a debt burden of up to 60 percent.
Which banks finance plots and construction, and on what terms, varies more than for a finished home. A specialist can tell you which ones fit your plot and build plan.
Which banks offer land and construction finance, and their terms, is lender practice.
Rules are the easy part. Your file is the question.
Building or buying a plot? Talk to a Specialist.