Frequently Asked Questions

Wahed Real Estate is a Shariah-compliant investment platform for real estate, allowing investors to passively invest in Malaysian residential properties through fractional ownership.

For each property, a separate Limited Liability Partnership (LLP) is established to acquire and hold the asset. This LLP acts as a special purpose vehicle (SPV), meaning it is created specifically to own and manage that property. Each LLP has its own assets, liabilities, income and expenses, so every investment stays separate from the others.

Properties are purchased on a debt-free, equity-only basis, making the structure fully Shariah-compliant. Investors can potentially receive quarterly rental distributions and benefit from any capital appreciation when the property is sold.

The minimum investment is RM500, unless stated otherwise in the property’s offering materials.

Why choose Wahed for your Real Estate investments?

1. Fully Managed: We fully manage the property, including tenant acquisition, maintenance and administrative tasks so you can sit back and relax.
2. Truly Shariah-compliant: There are no mortgages, no interest and no hidden payments involved.
3. Exclusive properties: Access to the real estate sector with properties handpicked by our team of experts.

All shares for that property’s special purpose vehicle (SPV) have been subscribed. Once fully funded, the property moves to the closing stage and is no longer open for new investment.

Gross Rental Yield shows a property’s annual rent as a percentage of its total acquisition cost (purchase price + associated costs). It reflects income before expenses, so it is an indicator rather than a projection of net returns.

Direct ownership usually requires significant upfront capital, mortgage arrangements and active management. With Wahed Real Estate, you invest a smaller amount and own Partnership Units in a LLP that holds the property. Professional managers handle leasing, maintenance and compliance on your behalf. You receive updates and income with passive involvement.

REITs give exposure to a large company that owns many properties. You have no control over which properties are owned and returns depend on the performance of the full portfolio.

With Wahed Real Estate, you have the option to choose the individual property you want to invest in. Each property sits in its own LLP, and your investment is linked only to that asset’s income and potential appreciation. The Partnership Units issued by the property’s LLP are not publicly traded and performance depends on the specific property you selected.

Investors can potentially earn in two ways:

Rental distributions: The net rental from each property is distributed to investors in the form of dividends on a quarterly basis.‍‍Capital appreciation: If the property’s value increases over time, once the property is sold, investors receive the profit based on the proportion of their ownership after deducting fees, costs, expenses or reserves related to the property’s sale.

When you invest, you are issued partnership units in a LLP that has been established acquire and hold the target property. Each LLP owns a specific property and has its own assets, liabilities, income and expenses, legally separate from other LLPs.

Your ownership is represented by partnership units. These units reflect your proportionate interest in the LLP based on how much you invest.

Each LLP maintains a register of partners that records the units held by each investor and their corresponding ownership percentage.

After your investment funds clear, Partnership Units are issued to you in that LLP. You receive confirmation, periodic updates and quarterly reports. The appointed property manager oversees rent collection, maintenance and tenant relations on behalf of investors.

Current offerings focus on residential properties. Every property goes through inspection, valuation and due-diligence checks before being added to the platform.

Wahed Real Estate partners with licensed local property managers for day-to-day operations such as tenant screening, lease renewals, rent collection, inspections and maintenance. Management costs are included in each property’s operating budget and disclosed in its offering documents.

Rent levels are assessed using recent comparable rentals, local demand, lease terms and the property’s features. We aim to ensure that our prices are fair and consistent with local rental trends, providing tenants with competitive rates.

We aim to distribute net rental income quarterly to investors by direct deposit to their designated bank accounts. Distributions are made after deducting property expenses. The exact timing and amount may vary by property and are outlined in each offering’s documents.

The expected holding period differs by property - typically between 5 and 6 years, but it may vary depending on strategy and market conditions. Details are stated in each property’s offering materials.

Currently, investments are intended to be held until the property is sold. There is no active secondary market for shares at this time, but Wahed Real Estate may explore regulated options in the future.

Once your investment is accepted and Partnership Units are issued in the Limited Liability Partnership, it cannot be cancelled or refunded.

Yes, we charge capital raising fees, ongoing maintenance fees and exit fees throughout the property lifecycle.

Please find details of fees charged here.

Properties are purchased outright with cash, no interest-based mortgages or loans are used. Rental income is derived from permissible lease agreements and all contracts are reviewed to ensure they meet Shariah principles.

The structure is therefore free from riba (interest), Gharar (excessive uncertainty) and prohibited business activities.

Wahed Real Estate operates under the guidance of a Shariah Committee comprising esteemed scholars who review and approve all real estate transactions. This includes the screening of property transactions, rental agreements, and management practices to ensure they meet Shariah guidelines.

All properties, property managers, and related agreements are reviewed by Wahed’s internal Shariah team before any investment is made available to investors. The team ensures that the structure, contracts and income sources meet Islamic principles.

This work is carried out in line with the guidance and under the oversight of the Shariah Committee facilitated by the Shariyah Review Bureau (SRB), an independent panel of qualified scholars who review the overall investment framework, monitor adherence and provide guidance on ongoing operations.

The review includes:

• The ownership and legal structure of each SPV
• Tenant and lease arrangements
• Property-management contracts
• Financial flows and rental processes
• Any third-party agreements connected to the investment

Only once the internal Shariah team is satisfied that these elements are compliant is a property listed for investment.

Yes. The internal Shariah team performs ongoing supervision to ensure each property continues to meet Shariah standards as guided by the Shariah Committee. If a material change occurs, such as a new tenancy type or management arrangement, it is reviewed again before proceeding.

No. The model is entirely equity-based, and neither the platform nor investors pay or receive interest. Returns come only from property rental income and any profit realised when the property is sold.

Since Wahed Real Estate investments are fully Shariah-compliant and do not involve impermissible sources of income, there is no need for purification of earnings. All rental and capital appreciation income comes directly from halal sources. Unless incidental non-Shariah income (e.g., bank interest held temporarily) arises; such cases will be purified.

Our ethical, Shariah-compliant approach ensures that properties are rented out for permissible activities only. Properties are not leased for any activity that contradicts Shariah principles, such as operating bars or gambling establishments. Tenant agreements and property uses are closely monitored to maintain compliance.

Yes. The internal Shariah team conducts regular reviews, and the SRB performs a periodic Shariah audit on an annual basis to confirm that operations, contracts and reporting continue to comply with Islamic guidelines as advised by the Shariah Committee.

It’s a simple process.

1. Download the Wahed app and sign up or log in to your existing account.
2. From the product selection screen, choose “Real Estate.”
3. Complete your KYC verification by submitting your ID and basic details.
4. Finish your Real Estate onboarding, which includes a bankruptcy declaration, short suitability questionnaire and confirming your investor type.
5. Once this is complete, your account is ready to invest in available properties.

To comply with Malaysian regulatory requirements, we are required to collect and verify certain personal information, including:

• Full legal name and date of birth
• Residential address
• Valid identification (NRIC for Malaysians or passport for non-Malaysian residents)
• A Malaysian bank account in your name

This process is part of our Know Your Customer (KYC) and Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) obligations, in accordance with requirements set by the Securities Commission Malaysia and other applicable laws.

After completing the onboarding process, you can invest in your first property simply by tapping on the ‘Start Investing’ button and choosing the preferred investment amount.

Individuals who are Malaysian citizens or residents of Malaysia can open an account with Wahed.

You must be at least 18 years old and have a valid form of identification, such as a MyKad, MyPR, MyKAS, or a valid passport (for non-Malaysian residents), together with a residential address in Malaysia.

You are also required to have a Malaysian bank account in your own name in order to receive any distributions.

Currently, only Malaysian residents can onboard on the Wahed platform. If you are a non-Malaysian resident and interested in investing in Real Estate with Wahed, please contact us at realestate.mys@wahed.com for more information.

Investments are made via the Wahed app via FPX. Funds are paid into a trust account until the property’s fundraising target is reached and the offering is closed.

After your investment is confirmed, you will be registered as a partner in the LLP that will acquire and hold the target property. You receive confirmation, periodic updates and quarterly reports. The appointed property manager oversees rent collection, maintenance and tenant relations on behalf of investors.

Our customer support team can assist with account access, verification or transaction questions. For any help, you can contact us via email at realestate.mys@wahed.com.

Distributions typically begin after the property is acquired and tenanted. Timing depends on when the property closes and rental income starts to flow. We aim for the first distribution within the first full quarter following acquisition.

Rental income is generated by tenants who pay rent to occupy your investment properties.

Vacancies can reduce or delay rental income. Each property includes a reserve to cover unexpected operating costs or repairs.

When the property is sold, proceeds are used to settle costs and any outstanding obligations. Remaining profits are distributed to investors pro-rata, based on their proportional ownership in the Limited Liability Partnership.

If market conditions allow a strong sale earlier than planned, the Investment Committee may approve an early exit. If market conditions are weaker, the holding period may be extended to protect investor value. Investors are informed before any such decision is finalised.

No. Real-estate investments involve risk. While we aim to select stable, income-producing properties, rental yields and property values can fluctuate due to market and tenant factors.

Income is earned from renting properties, whereas capital appreciation is money earned from a property increasing in value.

Gross rent refers to the rental income generated from the property. Net rent refers to the income left after the costs such as management fees and taxes, have been deducted.

For example, if the monthly rental income from a property is RM1,000, deducting management cost, maintenance cost, and tax using the formula "gross rent - (management cost + maintenance cost + tax) = net rent" will give you a net rent of RM800.

Wahed X Sdn Bhd is registered with the Securities Commission Malaysia as a Recognized Market Operator (RMO) for equity crowdfunding.

Wahed Real Estate is offered under the Securities Commission Malaysia’s Regulatory Sandbox. For more information on the Regulatory Sandbox framework, please visit: https://www.sc.com.my/development/digital/regulatory-sandbox

Each property is held within its own Limited Liability Partnership (LLP), legally separated from other LLPs. This structure means that:

• Assets and liabilities of one LLP are independent of all others.
• Investors in one property are not exposed to obligations or risks from another property.
• Financial reporting and distributions are handled separately for each LLP.

The LLP SPV that corresponds to the property holds legal title. Investors are registered as Limited Partners in the LLP and are issued in Partnership Units in that LLP, which represent proportional rights to its income and proceeds.

As with any investments, real-estate investments also carry risks. Key risks can include but not limited to:

• Changes in property market values or rental demand
• Unexpected maintenance or repair costs
• Vacancy periods or tenant defaults
• Regulatory or tax changes
• Delays in property sale or exit

While Wahed Real Estate conducts thorough due diligence, returns and timelines are not guaranteed.

Read the full investment risk disclosures here.

Each property is evaluated by the Investment Committee against defined financial and market criteria before launch. We also maintain cash reserves within each LLP for contingencies such as vacancies or major repairs. Ongoing monitoring helps identify and address risks throughout the holding period.

Investors are registered as Limited Partners in the LLP that owns the property. They are entitled to:

• Receive periodic updates and financial information
• Receive distributions when declared
• Share in proceeds from the property’s sale, after expenses

Voting and governance rights are outlined in the Limited Liability Partnership Agreement.

Each LLP SPV is a separate legal entity, so ownership of the underlying properties remains intact. In the unlikely event that the General Partner of the LLP stops operating, an alternative manager or administrator could be appointed to oversee the LLP and its assets.

Material updates such as market developments or changes in operations will be communicated to you via emails.

Wahed Real Estate charges a one-time upfront fee to cover sourcing, due diligence, structuring and administrative costs associated with each property. This fee is included in the property’s financial model and disclosed in the investment memo.

An exit fee may also apply when the property is sold. This covers legal, brokerage and closing costs related to the sale.

In addition to these, each LLP SPV may incur ongoing third party property-level expenses such as:

• Property-management fees
• Insurance and property taxes
• Maintenance and accounting costs

All these costs are paid from the property’s income before calculating net distributions to investors.

No, Wahed Real Estate does not charge an ongoing platform or subscription fee after you invest throughout the holding period.

However, each property incurs standard operating costs such as property management, insurance, accounting and maintenance, as well as an exit fee charged by the General Partner of the LLP upon the sale of the property. These are paid from the property’s income before calculating net distributions and are outlined in the offering materials for each property deal.

Yes. Each LLP files its own financial reports and is included in the semi-annual and annual audited statements submitted to the SEC under Reg A Tier 2.

Investors receive net rental income after all property-level expenses and fees are deducted.

Each investor receives a Form 1099 showing their share of the Series LLC’s income, expenses and deductions. U.S. taxpayers include this in their annual returns. Wahed does not provide tax advice; please consult a professional advisor.

You will receive a Form 1099 each year if you earn distributions from your investment. Tax treatment may vary depending on your personal circumstances, so we recommend consulting a qualified tax adviser.

Distributions are generally treated as dividends for U.S. taxpayers. Any returns will be reported on your Form 1099 as distributions. Tax treatment may vary depending on your personal circumstances, so please consult a qualified tax adviser.

Wahed Real Estate does not withhold taxes; investors report income directly to the IRS. Wahed does not provide tax advice; please consult a professional advisor.

No. Wahed Real Estate cannot provide personal tax advice. Investors should speak with a certified tax professional for guidance specific to their individual circumstances.

If you need to update the bank account linked to your Wahed Real Estate profile, please reach out to our support team at realestate.mys@wahed.com. They’ll guide you through the verification process to ensure your new account is securely updated. For security reasons, distributions can only be made to verified bank accounts held in your name.

At present, your investor classification can’t be changed directly once onboarding is complete. If your circumstances change, you can contact the support team for guidance.

You can explore detailed educational resources in the Real Estate Learning Center, which includes guides, explainers and tools to help you understand how fractional real estate investing works.

For partnership, creator or influencer collaborations, please reach out to our partnerships team at creators@wahed.com.