Malaysia’s commercial real estate (CRE) market is showing resilience, echoing a global recovery that saw investments rise to US$806 billion in 2024—an 8% year-on-year increase, according to Knight Frank’s Wealth Report 2024. Global capital flows surged 12% to US$171 billion, driven largely by private and institutional investors seeking long-term value.
In Malaysia, high-net-worth individuals and institutions have been particularly active in the office and industrial sectors. Private capital remains dominant, while global public market investments rose 22% year-on-year. Industrial and living sectors led global investments with US$216 billion and US$205 billion, respectively.
Knight Frank’s Group Managing Director Keith Ooi highlighted growing interest in prime office and logistics assets in cities like Kuala Lumpur, Penang, and Johor Bahru. As economic conditions stabilize and financing becomes more accessible, strategic acquisitions are expected to accelerate.
The report also noted a 4.4% global increase in high-net-worth individuals, with Malaysia benefiting from wealth expansion and stronger demand in luxury residential and high-value commercial properties. Investor appetite remains strong, setting the stage for a potentially transformative 2025 in the country’s real estate sector.
Source: Business Today Malaysia
