Most-asked question
Is investing in property permissible?
25 fatawa in the archive answer questions on this, from 4 South African Darul Iftas (AskImam, Mufti Online, Azaadville, Jamiat KZN). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.
Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.
Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.
What the Darul Iftas say
“If the Islamic/Shariah financing is Shariah compliant, it will be permissible to buy an investment property through that. However, one should be alert that there are many banks/Islamic investment schemes incorrectly claiming to be Shariah compliant.”
“If you sell the property to him as a cash sale, then though it will be permissible for you to hold back the property until you receive the entire payment, you cannot hold back the rentals as you no longer will be the owner of the property.”
“There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of property as an investment and not for resale, there is no Zakaat due on your share of the property itself.”
“The contract between the tenant and landlord will end if the property was sold with the consent of the tenant and the property will belong to the buyer.”
Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.
Read the fatawa
- Selling A Property With A Rental Condition Azaadville · 5 Feb 2025
- Property Investments AskImam · 23 May 2023
- Selling a property and holding back the property while receiving the rentals until full payment is made Mufti Online · 13 Feb 2022
- Zakaat on Property Investments Jamiat KZN · 26 Jun 2014
- Validity/Invalidity Of A Rental Agreement With An Unstipulated Rental Duration Azaadville · 24 Oct 2024
- Buying an investment property (for renting) using Islamic financing AskImam · 26 Sep 2018
- Compensation in order to leave the property one is renting Mufti Online · 23 Mar 2013
- Selling A Property Currently Being Leased Out Azaadville · 27 Feb 2022
- Is the buy to let mortgage by Al Rayan Bank Shariah complaint? AskImam · 13 Feb 2018
- Asking an heir living in a property belonging to the estate to pay a rental Mufti Online · 24 Mar 2021
- Partners in property investment. AskImam · 8 Mar 2017
- Inheritance from a property on rent Mufti Online · 11 Feb 2021
- Shari’ah Compliancy of property investment and relevant Zakat rules. AskImam · 28 Sep 2016
- Purchasing shares in a property rented out to a supermarket with a liquor department Mufti Online · 28 Jan 2020
- How can I finance a property with Islamic financing and an additional third party investor? AskImam · 14 May 2016
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