Zakat on a Land-for-Flats Developer Deal

Short answer: It follows intention: (a) flats for your own/family residence — no zakat, during construction or after; (b) intended for renting — no zakat on the flats' value, only on accumulated rent after handover; (c) intended for profitable sale — trade goods: from the day of firm sale-intent, pay 2.5% yearly on the market value of your entitlement (the contractual right while under construction). Details: Land-for-flats is an exchange contract (land share ↔ built flats) — permissible with clear terms. During construction your asset is the contractual entitlement; with sale intent, value it at today's transfer price — and if illiquid, you may settle the accumulated years after the sale. With mixed intentions (keep some, sell some), each flat follows its own intention. Evidence: Sahih al-Bukhari 1 (intentions); Sahih al-Bukhari 1464 (personal-use exemption); Quran 2:267 with the real-estate fatwa principles of the Permanent Committee and Shaykh Ibn Baz. For complex individual cases, consult a qualified scholar.