Banker: Banks do not grant real estate financing with their guarantee

Allowing citizens to build annexes in public and private housing in Abu Dhabi

Under the new decision, citizens can build annexes, but at their own expense.


The Department of Municipalities and Transport in the Emirate of Abu Dhabi issued a decision allowing citizens, owners of public and private homes, to build residential annexes in their units, whether for the purpose of expansion or for special social purposes, such as the marriage of children or others.

According to Resolution No. (98) of 2021, of which Emirates Today obtained a copy, paragraphs (1) and (2) of the standards and planning requirements contained in Administrative Resolution No. (198) of 2019.


Under the amendments, the old decision was only applicable to grant lands, but now it applies to grant and inheritance lands, and it was also allowed under the amended decision to allow the construction of one housing unit for every 700 square meters of the residential plot area in all cities of the emirate, instead of 900 square meters. Square applicable in the previous resolution.

The decision also amended the second item of the planning standards and requirements regarding the area of ​​residential plots for the construction of two single-block housing units for cases of polygamy, to become 1,400 square meters instead of 1,800 square meters.


In addition, a high-ranking banker, who preferred not to be named, said that banks usually receive circulars regarding amendments to construction procedures in Abu Dhabi for the reasons of real estate financing, noting that the new decision would create greater flexibility in dealing with public and private housing, in terms of allowing Expanding and building rentable annexes, and this was not permitted in the past.


He explained that popular housing means those that their owners received ready for housing, and they did not build them, and this is not subject to mortgage, meaning that banks cannot grant loans with their guarantee, even for the purposes of expansion or building new annexes in the same area.

He added that under the new decision, citizens can build annexes, but at their own expense, and the requirements regarding space have been reduced, and this is in the interest of citizens, enabling them to expand their homes better, or build annexes for children.

The new decision applies to grant and inheritance lands, and amends the standards and planning requirements regarding the area of ​​residential plots.

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Keywords: annexes, decision, citizens, housing, purpose, purposes, units, marriage, expansion, banker, lands, others, children, banks, real estate financing