Is zakat due on lands owned by a real estate development company, which undergo long development stages (leveling, road paving, extending utilities) and take years, and is this annually or only upon their sale, knowing that the profit margin is not large?

Zakat (definition) is obligatory on lands owned by a company with the intention of selling them. These lands are considered trade goods, and Zakat is paid on them annually by evaluating their value at the end of each lunar year, and then giving out a quarter of a tenth (2.5%) of their value. This is based on the general evidence for the obligation of Zakat on trade goods.

Some scholars differentiate between lands that are not sold until after their development, for which Zakat is paid for one year upon their sale (like a slow-moving commodity), and lands that can be sold at any stage of development, for which Zakat is paid annually. This opinion offers ease for the Muslim community.