A Muslim’s guide to halal real estate investing

What is Real Estate investing?

Real Estate investing, quite simply put, is the allocation of funds into property - be it commercial property, residential property, or even undeveloped land with a scope of future development. 

You can aim to earn from real estate in two main ways:

Rental Income: This is the income you receive via rent from the tenants. Rental income can provide investors with a relatively regular and stable income stream that can either supplement other income streams or be the main source of income for full-time property investors. However, like any other investment, this isn’t risk-free and can fluctuate based on occupancy and other market conditions.  

Capital Appreciation: This is an increase in your property’s value over time. For example, if you buy a house for £300,000 and its value rises to £350,000 in five years, you gain £50,000 in capital appreciation when you sell the property.