Answer: Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
The foundational Sharia principle is that Zakat is obligatory on everything intended for trade. Allah the Almighty says {what means}: "O you who have believed, spend from the good things which you have earned." [Al-Baqarah/267]. The great scholar Mujahid explained this verse as referring specifically to "trade" [Tafsir Ibn Kathir, Vol.1/P.697].
Apartments intended for sale are treated as trade goods (‘Urud al-Tijarah). Ordinarily, they must be appraised every lunar year and Zakat paid on their value. This is based on the narration of Samurah bin Jundub (may Allah be pleased with him), who said: "The Messenger of Allah ﷺ used to command us to pay the Zakat due on that which we prepared for sale." [Narrated by Abu Dawud and al-Bayhaqi].
However, in cases of market stagnation (Kasad) or when a project is stalled and incomplete, the Maliki school of thought provides a practical concession. They hold that Zakat is not due every single year the property remains unsold. Instead, it is paid only once—for a single year—at the time the sale is finally completed.
It is stated in Al-Mudawwanah al-Kubra (1/309), a primary Maliki reference: "If a man buys goods... and he is not a frequent trader who constantly turns over his capital, and the goods remain with him unsold for several years; there is no Zakat due upon him during those years. When he finally sells the goods, he pays Zakat for one year only."
According to the Maliki school of thought, Zakat is not obligatory on the owner of apartments if the completion of their construction has stalled to the point where the owner cannot dispose of or sell them. Once the units are eventually sold, Zakat should be paid for one year only upon the proceeds. And Allah the Exalted knows best.
