Malaysia Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

the Report Covers Malaysia Commercial Real Estate Market, and It is Segmented by Type (offices, Retail, Industrial, Logistics, Multi-Family, and Hospitality) and by Key Cities (Kuala Lumpur, Seberang Perai, Kajang, Klang, and the Rest of Malaysia). the Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Malaysia Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Malaysia Commercial Real Estate Market Size

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Malaysia Commercial Real Estate Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 9.56 Billion
Market Size (2030) USD 13.82 Billion
CAGR (2025 - 2030) 7.65 %
Market Concentration Low

Major Players

Malaysia Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Real Estate

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Malaysia Commercial Real Estate Market Analysis

The Malaysia Commercial Real Estate Market size is estimated at USD 9.56 billion in 2025, and is expected to reach USD 13.82 billion by 2030, at a CAGR of 7.65% during the forecast period (2025-2030).

  • As per industry experts, in the first half of 2022 (H1 22), across property market performance in the Klang Valley, Penang, Johor Baru, Johor, and Kota Kinabalu in Sabah, the industrial real estate sector continued to grow in comparison to the retail industry. The industrial sector has consistently grown over the past few years due to rising e-commerce penetration rates. The rise in long-distance shipping increased the need for warehouse space and a structural change toward omnichannel retailing. There is strong interest in selling or buying existing commercial assets (land or buildings) in Sabah, Johor, and Klang Valley, whether taking advantage of bargains for high-quality assets or implementing a portfolio rationalization exercise. The Logistics and Industrial sub-sectors remain the real estate industry's new darlings. As people exit pandemic management after two years, there is a clear interest in the Healthcare sub-sector becoming an alternative investment to watch.
  • According to Industry experts, the real estate market in Malaysia is slowly improving as buyers are still dealing with the repercussions of COVID-19. According to the company's most recent research on the Malaysian real estate market, the Landed Property Sale Price Index increased by 1.1% quarter over quarter and 3.64% year over year in the second quarter (Q2) of 2022. It is accompanied by a 5.21% increase but a QoQ decline of 1.96% in the Landed Property Sale Demand Index. Even though potential purchasers are discouraged by affordability and financial instability challenges, the group claimed that the pattern showed that landed properties are still the preferred purchasing option. It led to slower demand for homes.
  • Year-on-year (y-o-y), Malaysia's volume of property transactions registered a 1.78% marginal drop in the first nine months of 2021 to clock in at 201,068 transactions. However, the transaction value rebounded nearly 14% to almost MYR 98 billion (USD 22.10 billion) or up to about MYR 11.2 billion (USD 2.53 billion) in 2020. Investments into the Office, Retail, Hotel / Leisure, Industrial, and Logistics sub-sectors will increase in 2022-23. Developers have increased their investment across the board in all sub-sectors, indicating increased activity in 2022-23 over the previous two years. Managers of mutual funds and real estate investment trusts have increased their exposure to industrial and hospitality assets, with a roughly equal distribution in the other sub-sectors. Lenders have reduced their exposure in almost all sub-sectors except the Office sub-sector.

Malaysia Commercial Real Estate Industry Overview

The Malaysia Commercial Real Estate Market is fragmented, with many players having scope for growth. Major Malaysian commercial real estate market players include Conlay Construction, YTL Corporation, IJM Corporation, Ho Hup Construction Company, and Renzo Builders. The developers are trying to bring new, lower-cost products to meet current demand. Evolving technological advancements such as new proptech solutions drive the market in terms of increased transactions and better management of real estate assets.

Malaysia Commercial Real Estate Market Leaders

  1. Conlay Construction Sdn Bhd

  2. YTL Corporation Berhad

  3. IJM Corporation Berhad

  4. Ho Hup Construction Company Berhad

  5. Renzo Builders (M) Sdn. Bhd

  6. *Disclaimer: Major Players sorted in no particular order
Malaysia Commercial Real Estate Market Concentration
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Malaysia Commercial Real Estate Market News

  • July 2023: Skyworld Development Bhd plans to launch new commercial projects in Kuala Lumpur with total estimated gross development values exceeding RM 1 Billion in the current financial year ending March 31, 2024. Skyworld will explore new growth opportunities by expanding its presence from Kuala Lumpur to the state of Selangor.
  • January 2023: Gamuda Bhd’s unit is acquiring eight parcels of freehold lands in Rawang, collectively spanning 532 acres for RM360 million. Gamuda Land (Botanic) Sdn Bhd purchased these lands from Kundang Properties Sdn Bhd for a mixed development with a gross development value of RM3.3 billion over ten years. The group said these new lands are targeted for a 2026 launch and will contribute to the group’s earnings over the following six years as Gamuda Land continues to focus on high-value opportunities both in Malaysia and overseas, where it has established its presence, namely Vietnam, Australia, Singapore and the UK.

Malaysia Commercial Real Estate Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Growth trajectory with a steady pipeline of distribution and warehouse projects
    • 4.2.2 Increasing investment in Greater Kuala Lumpur for Office Space
  • 4.3 Market Restraints
    • 4.3.1 Rising commodity prices
  • 4.4 Market Oppurtunities
    • 4.4.1 The ongoing mega projects will have a positive multiplier effect for the commercial property market
  • 4.5 Insights into Supply Chain/Value Chain Analysis
  • 4.6 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers/Consumers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry
  • 4.7 Government Regulations and Initiatives
  • 4.8 Technological Trends
  • 4.9 Insights into Existing and Upcoming Projects
  • 4.10 Insights into Interest Rate Regime for General Economy and Real Estate Lending
  • 4.11 Insights into Rental Yields in the Commercial Real Estate Segment
  • 4.12 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
  • 4.13 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Type
    • 5.1.1 Offices
    • 5.1.2 Retail
    • 5.1.3 Industrial
    • 5.1.4 Logistics
    • 5.1.5 Multi-family
    • 5.1.6 Hospitality
  • 5.2 By Key Cities
    • 5.2.1 Kuala Lumpur
    • 5.2.2 Seberang Perai
    • 5.2.3 Kajang
    • 5.2.4 Klang
    • 5.2.5 Rest of Malaysia

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 Conlay Construction Sdn Bhd
    • 6.2.2 YTL Corporation Berhad
    • 6.2.3 IJM Corporation Berhad
    • 6.2.4 Ho Hup Construction Company Berhad
    • 6.2.5 Renzo Builders (M) Sdn. Bhd.
    • 6.2.6 UEM Group
    • 6.2.7 Gamuda Berhad
    • 6.2.8 China Construction Development (Malaysia) Sdn. Bhd.
    • 6.2.9 NS Construction
    • 6.2.10 Malaysian Resources Corporation*
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

8. APPENDIX

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Malaysia Commercial Real Estate Industry Segmentation

Commercial real estate (CRE) is the land only used for business-related activities or to offer a workspace instead of being utilized as a residence, which would fall under the residential real estate category. Most frequently, renters lease commercial real estate to conduct businesses that generate cash. The report also covers the impact of COVID-19 on the market.

The Malaysia Commercial Real Estate Market is segmented by type (offices, retail, industrial, logistics, multi-family, and hospitality) and key cities (Kuala Lumpur, Seberang Perai, Kajang, Klang, and the rest of Malaysia). The report offers market size and forecasts for the Malaysia Commercial Real Estate market in value (USD) for all the above segments.

By Type Offices
Retail
Industrial
Logistics
Multi-family
Hospitality
By Key Cities Kuala Lumpur
Seberang Perai
Kajang
Klang
Rest of Malaysia
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Malaysia Commercial Real Estate Market Research FAQs

How big is the Malaysia Commercial Real Estate Market?

The Malaysia Commercial Real Estate Market size is expected to reach USD 9.56 billion in 2025 and grow at a CAGR of 7.65% to reach USD 13.82 billion by 2030.

What is the current Malaysia Commercial Real Estate Market size?

In 2025, the Malaysia Commercial Real Estate Market size is expected to reach USD 9.56 billion.

Who are the key players in Malaysia Commercial Real Estate Market?

Conlay Construction Sdn Bhd, YTL Corporation Berhad, IJM Corporation Berhad, Ho Hup Construction Company Berhad and Renzo Builders (M) Sdn. Bhd are the major companies operating in the Malaysia Commercial Real Estate Market.

What years does this Malaysia Commercial Real Estate Market cover, and what was the market size in 2024?

In 2024, the Malaysia Commercial Real Estate Market size was estimated at USD 8.83 billion. The report covers the Malaysia Commercial Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Commercial Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Commercial Real Estate in Malaysia Industry Report

The commercial real estate market in Malaysia is experiencing robust growth, driven by rapid economic development, urbanization, and increasing foreign direct investments. This dynamic market is segmented into various property types such as office spaces, retail properties, industrial and logistics facilities, and hospitality establishments, each offering unique demand drivers and growth potential. Key trends include the rise of mixed-use developments that blend residential, commercial, and recreational spaces, and a focus on sustainability through green building practices. The shift towards flexible workspaces and co-working spaces reflects the evolving nature of work and preferences for collaborative environments. For a comprehensive understanding of market share, size, revenue growth rate, and a forecast outlook, access detailed industry reports and analysis, including a free report PDF download from Mordor Intelligence™. This sector is poised for continued expansion, offering lucrative investment opportunities and significantly contributing to Malaysia's economic growth. Key stakeholders, including commercial real estate companies, can leverage this data to optimize their strategies in the commercial property market in Malaysia. This detailed commercial real estate market analysis helps in understanding the commercial real estate market size and future trends, essential for planning and investment decisions.