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  • Investment In Hotel Apartment

    Posted by Burhan Khan on July 8, 2021 at 6:48 am

    Building projects like mall, residential apartments, service apartments, hotel apartments are becoming more and more popular now a days. Typically they all work on almost the same model in which, you can book an apartment, suite or shop with a down payment and then pay the remaining in installments. Once the installments are complete, service apartments & hotel suites give you a fixed monthly rental which appreciates annually along with the value of the unit.

    My question is if this rental income is halal?

    In another variation of this, you pay upfront the whole price of the unit that you are interested in buying and the builder starts paying you the rental right from the beginning where the actual construction hasn’t even started yet. Some of them call it rent, some call it profit and some are calling it discount. They say that assume on full payment we give you 40% discount but you will receive it in monthly payments till the completion of the project. No one calls it interest.

    My question here again is, if this variation of investment where there nothing constructed yet but with a full payment upfront you start getting something in return monthly, is it halal?

    Faisal Haroon replied 3 years ago 3 Members · 2 Replies
  • 2 Replies
  • Investment In Hotel Apartment

    Faisal Haroon updated 3 years ago 3 Members · 2 Replies
  • Nadeem Minhas

    Member July 8, 2021 at 12:59 pm

    I am not a scholar. I think it is not interest payment. In an interest payment, you get money back in return for money and interest on top of it.

    In this case you are getting a shop at the end and rent while it is being built. As long as rent is paid somewhat equivalent to market rent and determined based on shop location and square footage.

  • Faisal Haroon

    Moderator July 8, 2021 at 4:12 pm

    Riba is only a consideration in loan transactions. All kinds of business transactions are permissible as long as they don’t have any aspect of immortality or shirk.

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