Kuala Lumpur: Juwai IQI anticipates sustained robust performance in Malaysia’s property market in 2025, driven by advancements in artificial intelligence, investments, and the industrial and commercial sectors.

According to BERNAMA News Agency, Kashif Ansari, co-founder and group chief executive officer of Juwai IQI, highlighted the pivotal role of AI and digital infrastructure investments in driving industrial real estate growth.

Ansari stated that over RM57 billion has already been committed for data centers, with a total investment pipeline of RM149 billion, indicating continued investor confidence. He emphasized that foreign direct investment, along with Malaysia’s strategic participation in BRICS and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, will sustain the commercial real estate market.

In the residential sector, Juwai IQI projects price growth of up to three percent in 2025, alongside an increase in new home supply and improved transaction volume. Ansari pointed out that the southern region, particularly areas with strong cross-border ties with Singapore, will experience heightened demand due to new transport links and incentives from the Johor-Singapore Special Economic Zone.

Regarding the industrial and commercial segments, Ansari noted that industrial transaction values for the third quarter of 2024 rose by 22 percent to RM7.2 billion year-on-year. The demand for warehouses and distribution centers has been strong, fueled by Malaysia’s rapid expansion as a distribution hub, boosting demand for these facilities.

Additionally, Ansari mentioned that the residential real estate market would continue its growth this year. In 2024, the residential market recorded a 10.4 percent increase in transaction value, reaching RM28.74 billion during the third quarter. Residential transactions accounted for 50 percent of all property transactions, up from 46 percent in the first half of the year, driven partly by a 10 percent increase in new home supply.

He further noted that the industry has nearly tripled the number of new homes under construction compared to the previous year, indicating a substantial pipeline of future supply.