Halal Real Estate Stocks
Real estate companies and REITs (Real Estate Investment Trusts). Islamic scholars have varying opinions on REITs due to their use of conventional financing. Physical real estate is generally permissible, but REIT structures require careful Shariah analysis of their debt and income sources.
6
Compliant
9
Non-Compliant
0
Needs Review
Real Estate Shariah Compliance Results
15 stocks screened against AAOIFI 30/30/5 standards.
| Symbol | Company | Status |
|---|---|---|
| PLD | Prologis, Inc. | Compliant |
| AMT | American Tower Corporation | Non-Compliant |
| CCI | Crown Castle Inc. | Non-Compliant |
| SPG | Simon Property Group, Inc. | Non-Compliant |
| O | Realty Income Corporation | Non-Compliant |
| WELL | Welltower Inc. | Compliant |
| DLR | Digital Realty Trust, Inc. | Compliant |
| PSA | Public Storage | Compliant |
| EQIX | Equinix, Inc. | Compliant |
| AVB | AvalonBay Communities Inc | Non-Compliant |
| EQR | Equity Residential | Non-Compliant |
| VTR | Ventas, Inc. | Compliant |
| ARE | Alexandria Real Estate Equities, Inc. | Non-Compliant |
| MAA | Mid-America Apartment Communities, Inc. | Non-Compliant |
| UDR | UDR, Inc. | Non-Compliant |
Frequently Asked Questions
Which Real Estate stocks are halal?
Based on AAOIFI 30/30/5 screening, 6 out of 15 screened Real Estate stocks are currently Shariah compliant. Compliance status is updated regularly as new financial data becomes available. Use the table above to see the full breakdown of compliant, non-compliant, and needs-review stocks.
Is the Real Estate sector halal to invest in?
The Real Estate sector is not inherently halal or haram as a whole. Each company must be individually screened against Shariah compliance standards. Some Real Estate companies pass all AAOIFI criteria while others fail due to excessive debt, cash holdings, or non-permissible income. Always screen individual stocks before investing.
What is the AAOIFI 30/30/5 screening standard?
The AAOIFI 30/30/5 standard is the most widely adopted Shariah screening methodology. It requires: (1) the company does not primarily operate in haram industries, (2) interest-bearing debt is below 30% of market capitalization, (3) cash and interest-bearing securities are below 30% of market cap, and (4) non-permissible income is below 5% of total revenue. A stock must pass all four criteria to be considered Shariah compliant.
Can a Real Estate stock's halal status change?
Yes. Shariah compliance status can change every quarter when companies release new financial data. Changes in debt levels, cash holdings, or revenue composition can push a stock above or below the AAOIFI thresholds. Halalytic uses the latest available financial data so you always see the current compliance status. We recommend checking compliance regularly, especially after earnings reports.
Do I need to pay zakat on Real Estate stocks?
Yes. If you hold stocks for investment (not just for day trading), you must pay zakat of 2.5% on the market value of your holdings once they exceed the nisab threshold and have been held for one full lunar year (hawl). Use the Halalytic Zakat Calculator to determine your exact zakat obligation on stock holdings.
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Good to know: Compliance status can change as new company data becomes available. For important decisions, we recommend checking the current data and confirming the result with a qualified Shariah adviser.
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