Answered by: Maulana Abrarul H. Hasib
Question:
I was wondering about REITS. I was looking into ones that own medical buildings and apartment buildings. But not certain if they are halal to buy on the stock market.
I was also wondering about the ones that own the malls etc. But l am more interested in the ones that own apartments.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
For such investments in order to be lawful, it is necessary that the four conditions are found.
The four conditions are as follows:
1] Primary business is halal.
2] It should have some liquid assets.
3] Voice concerns against involvement of interest.
4] The amount that has been received with interest must be given in charity. [1]
If any of the aforementioned conditions are not found, the investment will not be permissible.
Only Allah knows best
Written by Maulana Abrarul H. Hasib
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
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[1] Fiqhi Maqaalat, Pg.144,151. Memon Islamic Publishers.