Question:

A man purchased a plot and is building a house on it. His intention is to sell the house. The construction is not complete as yet. Is it necessary to pay zakah on this house?

Answer: حامدا ومصليا ومسلما

The house is being constructed with the intention of selling it. Therefore it will be considered an item of trade. Pay the zakat of the house based on its present value.

And Allah knows best.

(Hazrat Mufti) Abdur Raheem Lajpuri (May Allah have mercy on him.)

Fatawa Rahimiyyah (7/159 Darul Ishat Karachi)