Malaysia Real Estate Market Size (2024 - 2029)

The market size of the Malaysian real estate sector is projected to expand, driven by a compound annual growth rate of more than 4.5% during the forecast period. Despite the challenges posed by the COVID-19 pandemic, the market has shown resilience, with a slight increase in the house price index. The market rebounded in 2022, with a shift in demand towards affordable housing. Developers remain optimistic about the long-term prospects of the property market, especially considering the robust demand from the younger demographic. The current interest rate is expected to remain favorable, providing further support for market growth.

Market Size of Malaysia Real Estate Industry

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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

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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

Malaysia Real Estate Market Size Summary

The Malaysia Real Estate Market is anticipated to experience significant growth over the forecast period, driven by a robust demand for properties among the young demographic. Despite the downward pressure on house prices due to the COVID-19 pandemic, the market is slowly rebounding, with demand skewing towards affordable housing. The favorable interest rate environment is also expected to support this growth. However, the market faced challenges in 2021, with limited support in the 2022 Budget, except for changes in real property gains tax. The market has been cooling in recent years due to an oversupply of properties, particularly in major cities. In response, the government introduced measures to control speculation and discourage overbuilding. The Greater Kuala Lumpur area saw an increase in office space, with new office completions expected to further boost supply growth. The residential real estate market in Malaysia is highly fragmented, with competition among market players impacting selling prices and leading to oversupply. The market is dominated by a few branded players and multiple local players.

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