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Malaysia Real Estate Market Size (2024 - 2029)

The Malaysia real estate market is projected to experience significant growth over the forecast period, with its market size expanding considerably. The market's recovery from the impacts of the COVID-19 pandemic has been marked by a shift in demand towards affordable housing, driven by a young demographic. Despite previous challenges, the market's expansion is supported by favorable interest rates and a cautious optimism among developers regarding medium to long-term property prospects.

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Market Size of Malaysia Real Estate Industry

Malaysia Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 36.76 Billion
Market Size (2029) USD 50.69 Billion
CAGR (2024 - 2029) 6.64 %
Market Concentration Low

Major Players

Malaysia Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Malaysia Real Estate Market Analysis

The Malaysia Real Estate Market size is estimated at USD 36.76 billion in 2024, and is expected to reach USD 50.69 billion by 2029, growing at a CAGR of 6.64% during the forecast period (2024-2029).

  • The Malaysian real estate market is expected to register a CAGR of more than 4.5% during the forecast period. The COVID-19 pandemic crippled demand, adding downward pressure on house prices. As a result, Malaysia's house price index rose a minuscule 0.3% during the year to Q1 2021, down from the previous year's 1.9% Y-o-Y increase. This was a sharp slowdown from the annual price growth of 7.5% from 2010 to 2019. When adjusted for inflation, house prices fell by 1.3% Y-o-Y in Q1 2021.
  • Malaysia's property market rebounded in 2022 as more demand likely skewed toward affordable housing. Developers were cautiously optimistic about the property prospects in the medium to long term due to the likelihood of robust demand for properties among the young demographic.
  • The interest rate at the moment is expected to remain favorable. The year 2022 continued to be challenging from 2021 as there was little to be given in the 2022 Budget except for real property gains tax (RPGT) reverting to 0% and 5.0% for both individuals and companies, respectively.

Malaysia Real Estate Industry Segmentation

The real estate sector includes various phases of property dealings, such as developing, selling, buying, leasing, and management processes in the industrial sector, residential sector, etc. Furthermore, the Malaysian real estate market report covers a complete background analysis of the industry, including current economic and market scenarios, market size estimation for key segments, emerging trends in the market segments, and market dynamics. The report also covers the impact of the COVID-19 pandemic on the market.

The Malaysian real estate market is segmented by type of residential estate (apartments, villas, other types of residential estate) and commercial real estate (offices, retail, hospitality, and other types of commercial real estate). The report offers market size and forecasts for the Malaysian real estate market in value (USD billion) for the above segments.

By Type
Residential Real Estate
Villas
Apartments
Other Types
Commercial Real Estate
Offices
Retail
Hospitality
Industrial
Other Types
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Malaysia Real Estate Market Size Summary

The Malaysian real estate market is poised for significant growth over the forecast period, driven by a recovery from the pandemic's impact and a shift in demand towards affordable housing. The market, which experienced a slowdown due to oversupply and economic challenges, is expected to see a resurgence as developers anticipate robust demand from the young demographic. The government's measures to control speculation and overbuilding, such as adjusting stamp duties and real property gains tax, have been pivotal in stabilizing the market. Despite these challenges, the interest rate environment remains favorable, supporting the market's recovery trajectory.

The residential and commercial segments of the Malaysian real estate market are characterized by high fragmentation and competition. While large firms leverage their financial resources, smaller players compete by honing their expertise in local markets. This competitive landscape has led to variations in selling and land prices, contributing to the market's oversupply. Prominent companies like Hartamas Real Estate and S P Setia Bhd play significant roles in the sector. Recent developments, such as Sentral REIT's acquisition of Menara CelcomDigi and SkyWorld's expansion into Vietnam, highlight the dynamic nature of the market and the strategic moves by key players to capitalize on growth opportunities.

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Malaysia Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Overview of the Economy and the Market

    2. 1.2 Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector

    4. 1.4 Insights Into Size of Real Estate Lending and Loan to Value Trends

    5. 1.5 Focus on Technology Innovation, Startups, and Proptech in Real Estate

    6. 1.6 Demand for and Supply of Real Estate in Saudi Arabia and Key Cities

    7. 1.7 Insights into Rental Yields in the Real Estate Segment

    8. 1.8 Insights into Capital Market Penetration and REIT Presence in Real Estate

    9. 1.9 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Residential Real Estate

        1. 2.1.1.1 Villas

        2. 2.1.1.2 Apartments

        3. 2.1.1.3 Other Types

      2. 2.1.2 Commercial Real Estate

        1. 2.1.2.1 Offices

        2. 2.1.2.2 Retail

        3. 2.1.2.3 Hospitality

        4. 2.1.2.4 Industrial

        5. 2.1.2.5 Other Types

Malaysia Real Estate Market Size FAQs

The Malaysia Real Estate Market size is expected to reach USD 36.76 billion in 2024 and grow at a CAGR of 6.64% to reach USD 50.69 billion by 2029.

In 2024, the Malaysia Real Estate Market size is expected to reach USD 36.76 billion.

Malaysia Real Estate Market Report Snapshots

Malaysia Real Estate Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)