Housing Demolition and Reconstruction Loan

The Demolition and Reconstruction Housing Loan allows citizens to demolish their old house and build a new one on the same land, with a loan amount of 1,750,000 AED, repayable in monthly installments. The loan aims to support low-income citizens, improve housing quality, and ensure proper legal and financial safeguards.
Key Points:
General Eligibility Conditions:
• The applicant must be a citizen of full legal capacity and continuously residing in the country.
• The applicant or their spouse must not have benefited from any housing loan or housing grant from any government entity, except loans the wife may have received before marriage.
• Must own a property in the emirate registered in their name and free from legal restrictions on construction or disposition at the time of approval.
• The house must require demolition according to an official technical report.
• The building must be at least thirty years old.
• The applicant must commit to paying installments and provide any additional funds required for demolition and reconstruction exceeding the loan amount.
•    Full land and building (including attached facilities) must be mortgaged to the authority until the loan is fully repaid, with official registration in the property records.
•    The authority may request a financially capable guarantor if needed.
Eligibility Conditions by Category:
• Males: must be at least twenty-five years old.
• Widows: must be the custodian or provider for one or more children. For non-citizen widows, continuous residence for five consecutive years is required before applying.
• Unmarried Citizens: must be at least thirty years old, have no guardian or have a guardian unable to provide housing, or be responsible for housing relatives up to the second degree.
• Divorced Citizens: must be at least thirty years old, be the custodian or provider for one or more children. For non-citizens, continuous residence for five consecutive years is required.
• Married Citizens to Non-Citizens: must be at least thirty years old, have one or more children living with them, and have continuous residence with spouse and children for seven consecutive years. The non-citizen spouse must be unable to provide adequate housing and must commit not to claim the loan if they later obtain citizenship.
Loan Activation Rules:
• The loan approval will be canceled if demolition and reconstruction do not begin within three years of approval, unless there is an unforeseen reason beyond the applicant’s control.
• After cancellation, the applicant cannot apply for a new loan until two years have passed.

The text issued by the competent authorities: 
Housing Demolition and Reconstruction Loan:
It allows a UAE national to borrow a specific amount of AED 1,750,000 (One million seven hundred fifty thousand dirhams) to demolish his/her old home and build a new one on the same plot of land. The loan is repaid in monthly installments.

General Conditions for Eligibility for Housing Demolition and Reconstruction Loan:
1. The applicant shall be UAE national.
2. The applicant shall be of sound mind.
3. The applicant shall be a permanent resident of the UAE.
4. Neither the applicant nor his spouse has benefitted from any housing loans or housing grants from any government entity, whether federal or local, except for housing loans received by the wife before marriage.
5. The applicant shall own residential plot of land in the emirate, registered in his name, free from any legal impediments to construction or disposal at the time of approval on the loan.
6. He /She shall be a sole applicant, unless the housing is jointly owned.
7. The housing shall be demolished according to the technical report issued by Abu Dhabi Housing Authority or any other entity designated by Abu Dhabi Housing Authority.
8. The structural age of the housing shall not be less than (30) thirty years from the date of completion of the housing, according to the technical report issued by Abu Dhabi Housing Authority or any other entity designated by Abu Dhabi Housing Authority.
9. The UAE national with limited income shall undertake to repay the remaining installments when he/she becomes solvent.
10. The applicant shall undertake, upon request, to provide evidence proving that he/she can provide the additional funds required to complete the demolition and reconstruction works, whose value exceeds the amount of the loan granted by Abu Dhabi Housing Authority. Neither the consultant is assigned nor the works are awarded before these guarantees are provided.
11. The applicant shall undertake to mortgage the entire plot of land owned by him/her or granted to him/her and the building on it - if any - and the facilities and the attached buildings and easements rights as a first-degree mortgage in favor of Abu Dhabi Housing Authority until the loan is repaid. The mortgage shall be officially registered in accordance with the applicable legal provisions in this regard before the loan is activated. As well as all disposals shall be recorded in the real estate register kept by the competent authority in the emirate.
12. Abu Dhabi Housing Authority may request the applicant or the beneficiary to provide a financially solvent guarantor, in coordination with the entity designated to manage the housing loan.
Special Conditions according to Categories Eligible to Housing Demolition and Reconstruction Loan:
Males:
• He shall have completed twenty-five (25) years of age.
Widows:
• She shall be the custodian or provider of one or more children.
• A widow, whose dead husband is non-UAE national, shall have resided continuously in the United Arab Emirates for a period of no less than (5) consecutive years prior to the date on which the application is submitted.
Unmarried Female UAE Nationals:
• She shall be at least thirty (30) years of age.
• She shall not have a breadwinner, or her breadwinner is unable to provide a housing for permanent reasons, or it is impossible to legally obligate her breadwinner to provide a housing, or she is the provider of housing to her relatives up to the second degree.
Divorcée:
• She shall be at least thirty (30) years of age.
• She has been irrevocably divorced with major separation or has been divorced for three years.
• She shall be the custodian or provider of one or more children. Elderly divorcées or divorcées who are unable to bear children are exempted from this requirement, by virtue of a medical report issued by the competent authority.
• A woman divorced from a non-UAE national shall have resided continuously in the United Arab Emirates for a period of no less than (5) consecutive years prior to the date on which the application is submitted.
Female UAE Nationals married to Non-UAE Nationals:
• She shall be at least thirty (30) years of age.
• She shall have one or more children living with her. Elderly women or women who are unable to bear children are exempted from this requirement, by virtue of a medical report issued by the competent authority.
• She shall prove that she has resided continuously with her husband and children in the United Arab Emirates for a period of no less than (7) consecutive years prior to the date on which the application is submitted.
• The father of the children' shall be unable to provide a suitable housing.
• The non-UAE husband shall declare and undertake not to claim or apply for any housing loan if he obtains the UAE citizenship in future.
Controls for Beneficiaries of Housing Demolition and Reconstruction Loan:
Abu Dhabi Housing Authority may cancel the approval on the loan issued to the beneficiary in the event that the loan is not activated in the case listed below, unless the non-activation is due to an emergency beyond the beneficiary's control and in the event that the approval on the loan is canceled for the reasons mentioned in this clause. The beneficiary is not entitled to submit a new application for any loan before passing two years from the date of cancellation of the approval on the loan in the event that demolition and reconstruction works are not commenced within three (3) three from the date of approval on the housing demolition and reconstruction loan.
Reference: https://www.iskan.abudhabi/en/Our-Services/Housing-Demolition-and-Reconstruction-Loan