Halal income from real estate

Real estate is one of the most common ways Muslim investors look for steady income without riba. But "real estate income" covers very different things, and not all of it is halal or passive.

What makes real estate income halal

The same test as everything else in halal finance: you earn because you own something real and share in how it does.

• Rent from a property you own is halal income: you own the asset and carry its risk.
• Interest from lending money against property, like a mortgage or a mortgage fund, is not, even though it's "real estate".
• Debt matters too. A property or fund that borrows at interest to boost returns brings riba into it.

Your options

Own a rental yourself. Halal if bought without an interest-bearing loan, but not passive: tenants, repairs, vacancies and turnover are your job, or a property manager's cost.

Own with partners. Pooling cash with other investors spreads the cost, but someone still has to run the property.

Invest in a fund that owns homes outright. You own a share of many homes, someone else does the work, and your income comes from rent. Check whether the fund uses debt, what it actually owns, how income is paid, and how you get your money out.

How investing in co-owned homes works with Neeyah

Neeyah Fund owns its share of homes that families live in and are buying over time. Investors earn from two things: the rent residents pay on the fund's share of each home, and appreciation as homes grow in value, realized when residents buy more of their homes and reflected in the fund's share price, which we update every quarter.

Distributions are paid quarterly by direct deposit. The fund uses no debt. You can ask to withdraw with 3 months' notice, on a best-efforts basis. Because the family living in each home owns part of it, there's no tenant turnover and no one calling you about a broken water heater.

The fund is open to accredited investors only. Learn how investing works.