---
title: "Real estate and construction | IslamicOpenFinance™"
description: "Buildings are financed before they exist; the contract has to follow each stage. Istisna for construction, Parallel istisna, Ijarah on completion and more for Real estate and construction on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/real-estate/
lang: en-GB
source: "IslamicOpenFinance"
---

> Buildings are financed before they exist; the contract has to follow each stage. Istisna for construction, Parallel istisna, Ijarah on completion and more for Real estate and construction on IslamicOpenFinance™.

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3. Real estate and construction

Real economy

# Real estate and construction

Buildings are financed before they exist; the contract has to follow each stage.

Developers finance construction through istisna and lease completed buildings through ijarah, sometimes funded by sukuk. Stage payments, completion certificates and leases need to line up. IslamicOpenFinance™ keeps stages, payments and leases on one contract model.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### Istisna for construction

The financier commissions the building for a price paid in stages against certified progress.

2

### Parallel istisna

The financier's contract with the contractor is linked to its contract with the developer, each with its own schedule.

3

### Ijarah on completion

Completed units are leased with rentals, maintenance duties and takaful recorded.

4

### Project escrow

Buyer payments are held and released against milestones.

5

### Sukuk funding

Leased assets can back sukuk, with rentals feeding periodic distributions.

Value chain

## The actors in this chain

IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.

Developer Contractor Islamic bank Buyers and tenants Surveyor Sukuk investors

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=real-estate)

Typical flow

## A typical flow, step by step

1. **Commission (istisna)**
2. **Stage payments**
3. **Completion certificate**
4. **Handover**
5. **Lease (ijarah)**
6. **Rentals**
7. **Distribution**

Live demo

## See it in the terminal

Completed units leased on ijarah, with the lessor's obligations and rental dates on business days (demo). Demo data

**Demo** All institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.

Glossary

## Key terms for this sector

[Istisna](https://islamicopenfinance.com/glossary/istisna) [Ijarah](https://islamicopenfinance.com/glossary/ijarah) [Sukuk](https://islamicopenfinance.com/glossary/sukuk) [Periodic distribution](https://islamicopenfinance.com/glossary/periodic-distribution)

Other sectors

## Related sectors

[Real economy Energy and infrastructure projects Long-lived assets, many parties and decades of payments. - Project sukuk - Construction istisna - Forward lease See the sector](https://islamicopenfinance.com/sectors/energy-infrastructure/) [Real economy Food and agriculture supply chains Quality and origin run from farm to shelf; the financing should follow the same goods. - Salam for harvests - Input murabaha - Commodity-linked liquidity See the sector](https://islamicopenfinance.com/sectors/food-supply-chains/) [Business E-commerce and marketplaces Shoppers want to pay over time at checkout; the financier has to buy before it sells. - Murabaha at checkout - Profit-rate routing - Takaful at sale See the sector](https://islamicopenfinance.com/sectors/ecommerce/)

## Build Real estate and construction on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)