Forward Ijarah

Islamic home financing requires the bank to be linked to a real asset, which makes off-plan properties slightly more structured compared to ready properties.

In most cases, this is done through a form of Forward Ijarah, where the bank agrees to finance the property during construction, and the lease only begins once the property is completed and handed over.

Here is how it works:

• The bank steps into your position under the Sale and Purchase Agreement 
• Payments are released in stages, in line with construction progress 
• The property is registered under the bank (or jointly) during the build phase 
• Once the property is completed, the lease structure begins and regular payments start 
  
  

During the construction period, you are not paying rent in the same way as a completed property. The lease and full payment structure will only take effect after handover. The Dubai Land Department records this arrangement as an Islamic mortgage during the Oqood stage, and once the final title deed is issued, the full financing structure comes into effect.