🕌 Exploring Islamic Financing for Commercial Property
Last Update 7 months ago
For those looking for Shariah-compliant options, many Pakistani banks offer Islamic financing structures:
Popular Modes of Islamic Real Estate Finance:
- Diminishing Musharakah (Joint Ownership Model)
You and the bank co-own the property. You gradually buy the bank’s share while paying rent on their portion. - Ijarah (Lease-Based Financing)
The bank buys the property and leases it to you. Ownership is transferred at the end of the lease term. - Murabaha (Cost-Plus Sale)
The bank purchases the property and sells it to you at a markup, payable in installments.
Advantages of Islamic Financing:
- No interest (Riba)
- Structured around real assets
- Ethical investment principles
Considerations:
- Requires comprehensive documentation
- Often higher upfront costs (margin requirement)
- May require property to be from an approved list
Consult your bank's Islamic finance department to determine the best structure for your situation.