Kuala lumpur: Malaysia's real estate market in 2026 is expected to evolve from resilience to relevance, underpinned by economic stability, policy reforms, and infrastructure-led development, according to CBRE WTW Valuation and Advisory Sdn Bhd (CBRE WTW).
According to BERNAMA News Agency, the integrated real estate services firm said the market is likely to remain steady, with a growing emphasis on quality, sustainability, and long-term value creation. Group managing director Tan Ka Leong emphasized that assets, locations, and strategies must remain relevant to occupiers, investors, communities, and the future economy.
Tan highlighted several key themes for Malaysia in 2026, including a stronger focus on asset quality and adaptability, the continued influence of infrastructure and connectivity, rising expectations around sustainability and efficiency, and more calibrated, value-driven decision-making by occupiers and investors. These themes were discussed at the CBRE WTW Malaysia Real Estate Market Outlook briefing.
Furthermore, Tan indicated that Malaysia's residential property market outlook remains selectively positive, with price movements expected to be measured rather than broad-based across the sector. The commercial property market is anticipated to continue being driven by future-ready and environmental, social, and governance (ESG)-compliant assets.
Citing a review of the consumer price index (CPI), Tan said the residential market in 2026 is likely to remain selectively positive, supported not only by well-located developments but also by strong connectivity, quality, and evolving buyer expectations. He noted that quality properties, whether landed or high-rise, that are well-located and reasonably priced will continue to see demand, with expected price increases possibly exceeding three per cent.
Additionally, Tan remarked that the Malaysia My Second Home (MM2H) programme has generated a positive response in Malaysia's real estate market, particularly for properties priced above RM1 million. Over the past two years, overhang issues in Kuala Lumpur's city centre, including areas such as Mont Kiara, have eased, with previously unsold units above RM1 million gradually taken up by foreign buyers. Penang is also benefiting from the programme, targeting foreign buyers for high-rise and high-end developments.
On the broader market outlook, Tan mentioned that the newly signed Malaysia-United States Agreement on Reciprocal Trade (ART), along with increased technology flows, is expected to attract greater foreign investment into higher-value property segments, including advanced industrial parks, mixed-use developments, and commercial offices. Overall, Malaysia's real estate market in 2026 is expected to remain steady, with pricing and performance increasingly driven by asset quality, sustainability, and long-term relevance, particularly in the commercial and industrial segments.