London real estate has long been a popular choice for British and International investors, including those from the Middle East and Southeast Asia. However, the recent growth of Shariah-compliant investment vehicles is offering another path to access the market and bolstering the sector’s dynamism. Recently, there has been an increasingly strong demand for profitable Shariah-compliant real estate investments. This increase in demand has precipitated a demand for investments in the private rental sector in the UK.
From a Shariah-compliant perspective, the fact that real estate investment involves a physical asset makes it simpler than many other alternatives. Compared to other investments, real estate is a more natural fit with Shariah, provided that the assets are used for appropriate purposes. Not all of this demand will necessarily come from the Islamic world.
As with other areas of Islamic Finance, a Shariah-compliant investment appeals to investors beyond the Islamic world – ethical concerns drive an increasingly large part of the market.
Al Sana Property Investments (ASPI) will provide Shariah-compliant asset-backed investments to a global audience. These investments should not only generate annual profit but also have substantial future capital appreciation.
ASPI will make its funds globally available. These investments should be just as appealing to non-Muslim investors as they are to Muslim investors.
Targeting the private rental sector in the UK and London is one that is globally attractive, despite the uncertainty caused by Brexit for which we are well prepared.
And, crucially, there are no additional costs to structuring investments in an Islamic fashion rather than using conventional methods.