🕌 Exploring Islamic Financing for Commercial Property

For those looking for Shariah-compliant options, many Pakistani banks offer Islamic financing structures:

Popular Modes of Islamic Real Estate Finance:

1. 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.

2. Ijarah (Lease-Based Financing)
   The bank buys the property and leases it to you. Ownership is transferred at the end of the lease term.

3. 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.