Shariah-Compliant Housing: Opportunities and Challenges in Modern Markets

Noorsidi Aizuddin Mat Noor (Centre for Real Estate Studies, Mass Appraisal, Housing and Planning Research Group, Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310, Johor Bahru, Malaysia,)
Farhana Diana Deris (Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia, 81310, Johor Bahru)
Mustafa Omar (Real Asset Research Group, Universiti Teknologi Malaysia, Johor)
Hamdi Abdul Hamid (Land Administration and Development Studies Research Group, Real Estate Department, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor)
Afizan Mokhtar (College of Built Environment, University Technology of Mara, 40450 Shah Alam, Selangor)

Indonesian Journal of Islamization of Knowledge
Vol. 2 No. 1 (2024): Indonesian Journal of Islamization Studies (INJAS)

This study examines the market potential and challenges of Shariah-compliant housing, a niche in real estate adhering to Islamic principles against interest, gambling, and excessive uncertainty. Given the rising global Muslim population and demand for Islamic products, this research is timely. Focusing on Malaysia, the study employs a mixed-method approach, utilizing quantitative surveys of 150 Muslim respondents and qualitative interviews with industry experts. Findings indicate a strong preference for Shariah-compliant housing, with 78% willing to pay a premium, yet barriers like limited awareness and inadequate financing persist. The study emphasizes the need for education and improved regulations to foster market growth.