The chapter of Individual ownership has always been a bone of contention between Islam and Socialism. Socialism accepts the man's individual ownership on consumable goods but doesn't consider the same for factors of production i.e. land and factories etc. On the other hand, Islam recognizes and accepts the individual ownership on both consumable goods and factors of production. However, Islam has also made a legal system for the rightful use of this individual ownership. Under this legal system, the owner of a factory cannot shut it down by his own will. If the products of this factory are a necessity for general masses and shutting it down is causing trouble for them, the government will force the owner to open the factory for benefit of general masses
The individual ownership on consumable goods and factors of production has existed during the periods of all Prophets of Al Mighty Allah. No Prophet has denied this. The same was done during the life of Prophet Muhammad, before prophet hood and afterwards. Had the important issue of individual ownership of consumable goods and factors of production not valid in Islam, it would certainly have been described in detail in the discussion of lawful and forbidden in Islam. The true reason for giving goods and factors of production in the individual ownership was that a man will increase them through his efforts and grow in the commercial field which will result in benefit of people and country.
ALLAH is the creator of this universe and the whole system of this universe is being run only by ALLAH. Land and all other material things have been created for humans. To make this system up and running in the most effective manner, all the land and other material things have been granted in the ownership of humans. Therefore, in all the matters pertaining to this ownership, the opinion of the majority of Islamic scholars will be preferred.
A vast majority of Islamic researchers and spiritual leaders have accepted the human's individual ownership on land. But, few of them have also disagreed with this concept. They say that the land should remain in the collective ownership and individual ownership is not righteous in the sense that it is unjust with the poor. As all the land will be owned by rich capitalists and the poor would be deprived of a chance to become prosperous.
This opinion is against the concepts given in Qur'an and Traditions of the Prophet (PBUH) as there is no mention of this individual ownership as unjust or illicit. The rich companions of Prophet Muhammad (PBUH) used to sale and purchase the land (real estate properties) where as the poor ones were unable to do so. But, even then, Prophet Muhammad(PBUH)? never prohibited this act of sale and purchase of land which is evidence that it is right and not prohibited by the teachings of Islam.