In an innovative move aimed at enhancing housing solutions in Abu Dhabi, the Abu Dhabi Housing Authority (ADHA) has unveiled a new loan service designed specifically for constructing residences on subdivided agricultural land. This initiative aligns with the objectives of the Year of the Family, promoting family stability and community cohesion.
Loan Details and Eligibility
As outlined by Hamad Harib Al-Mehairi, General Director of the ADHA, the new housing loan initiative allows owners of agricultural land to subdivide their properties for the benefit of their children or male grandchildren. Once the subdivision is completed, they can apply for a loan of up to AED 1.75 million to construct a home on the newly divided property. This loan is available as either a repayable option or a deferred payment plan, dependent on the borrower’s monthly income. Additionally, beneficiaries will receive a financial grant of AED 250,000, which will be disbursed alongside the loan subject to specific conditions.
Application Process and Regulations
The ADHA has also indicated that they will consider applications from other first-degree relatives, including spouses in the case of polygamy, following established regulations and criteria. If a beneficiary, who might be the landowner or their child, possesses an inactive home construction loan or has received a residential land grant, they are required to cancel the inactive loan or forfeit the land grant. Subsequently, the subdivided land must be registered as residential property in the name of the beneficiary, with the ownership status classified as a grant.
Targeted Areas and Conditions
The initial phase of this service will focus on agricultural lands located in areas such as Al Rahba, Al Bahya, and Al Samha. It’s important to note that the agricultural land intended for subdivision must be free from legal restrictions related to construction and must have the necessary infrastructure in place at the time the loan is approved, in accordance with the planning permission issued by the Department of Municipalities and Transportation.
Upcoming Announcements
Further details regarding the availability of this service for citizens, along with the application process, are expected to be announced toward the end of this year.
Collaboration for Sustainable Urban Development
Abdullah Mohammed Al Bloushi, General Director of the Urban Planning and Licensing Centre at the Department of Municipalities and Transportation, emphasized that this partnership aims to achieve balanced and sustainable urban development. He remarked, “This collaboration supports family stability and enhances the quality of life in Abu Dhabi.” The joint efforts between the ADHA and the Urban Planning and Licensing Centre are set to create a flexible planning environment and streamline procedures related to land subdivision while meeting the aspirations of citizens and ensuring optimal use of land in accordance with high regulatory and planning standards.