Kuala lumpur: Malaysia's real estate market continues to receive demand from foreign investors in 2026 even with the stronger ringgit, underpinned by affordable property prices within the Southeast Asia region. JLL managing director Jamie Tan said while the strengthening of the ringgit over the past year has had some impact on foreign investment sentiment, it has not significantly dampened interest in the nation's real estate market.
According to BERNAMA News Agency, Tan noted that investors, particularly from Singapore and China, remain keen on Malaysia's residential markets, which are considered affordable compared to other Southeast Asian cities such as Bangkok and Jakarta. Areas like the Klang Valley and Johor Bahru continue to attract investor interest, with Johor Bahru showing a 25 percent growth, reflecting strong momentum as development progresses.
Tan highlighted that Malaysia's real estate performance for 2026 is expected to align with trends from 2025, with industrial logistics, data centres, and residential properties within transit-oriented developments projected to remain key outperforming segments. The performance remains highly location-dependent, influenced by local market dynamics, demographics, accessibility, and connectivity.
JLL Malaysia head of office leasing advisory Quiny Lee remarked that occupiers are expected to prioritize 'flight to quality', focusing on modern Grade A offices with strong environmental, social, and governance credentials, green certifications, and comprehensive amenities. With limited availability in city centers, tenants are considering fringe and decentralised locations offering modern amenities and strong sustainability features.
Lee added that new market entries for 2026 include KL Midtown, UOA Dua Tower (Tower B), and Menara Golden Eagle. However, the supply pipeline remains constrained with no significant new office completions expected in 2028, and the next wave anticipated in 2029. Owners of older office buildings are enhancing their assets through refurbishment and upgrades to remain competitive as occupiers emphasize wellness features, smart technology, and environmentally certified buildings.