Real estate has always been a dominant aspect of a nation's economy. The real estate crisis in the recent months have left the investors and consumers apprehensive about the future. One of the leading property consultants boast of accurately forecasting the downward trend by the next quarter, both for residential and commercial property prices in Dubai. This is due to a greater supply against a feeble demand. According to the real estate reports last month. the residential rental rates in Dubai slumped by 41%. These rates almost compete with the rental figures for the year 2007. It may be a sullen news for the investors as well as the property dealers who have been praying for an upward trend to appear since the first half of 2009 in order to make a profit by liquidating their stone and mortar possessions as soon as possible. But for the potential consumers who have been dreaming of buying that lovely apartment or office for personal use and not for sole purpose of earning a profit, have something to cheer about. This can be seen as a golden opportunity to indulge themselves into a buying spree.

A variety of Islamic housing financial products are available in the market. These are carefully tailored to suit the consumers' needs and are based on the Shariah principles such as Ijarah and Murabaha.

A common structure of a home loan based on Ijarah Financial Lease can be described on the following lines. The customer opting for a Shariah-compliant home loan option requests the bank to purchase a property of his choice along with a promise to lease it to the bank by making payments which are very similar to paying monthly rents. The benefit of making payments in installments is quite attractive against the burden of bulk payment. This benefit received from the bank services can be availed at a fair price which is worked out according to a pre-determined formula. The bank and the customer enter a unilateral sale and purchase undertaking, respectively which makes sure that the former party sells the aforementioned property to the latter at the pre-agreed price during or at the end of the lease period as per the contracts. Sometimes, a Takaful or insurance policy for the property is encouraged while entering into such contracts.

Murabaha or selling on profit is applied for dealing in a plot of land or property where the bank is the purchaser and sells the property or plot to the customer at a fixed percentage of profit. The customer pays the amount including the profit for the bank on a deferred payment basis. Until the ownership is transferred in the name of the customer, the risks associated with the purchased property is borne by the bank.

Analysts are predicting that the real estate scene is expected to improve by the dawn of 2011. So this year, one can avail the above featured products from various top-notch Islamic banks which are offering them at competitive rates and also, realize what a famous English writer, Sydney Smith once mentioned correctly that a comfortable house is a great source of happiness. It ranks immediately after health and a good conscience.

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