Buying a land and waiting for its price to go up to sell it

19-3-2007 | IslamWeb

Question:

Is the buying of land with the intention of selling it in the future at a higher price permissable?

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

 

It is permissible for a person to buy a land and when its price goes up, he sells it and gets a profit thereof, as Allaah Says (what means): {But Allaah has permitted trade and has forbidden interest.}[Quran 2:275].

If you are inquiring whether buying and selling the land at a higher price is considered a monopoly. The answer is that it is not monopoly, because monopoly is in regard to goods which may be stocked, like food, clothes and the like. In addition to this, monopoly has its own conditions and there is no need to mention them here.

What is important is that buying a land and waiting for its price to go up in order to sell it is permissible. However, you should take into account the rulings of Zakat, if any; this is clarified in Fataawa 83761 and 81404.

Allaah Knows best.