Malaysia Commercial Real Estate Market Size And Forecast
The Malaysian commercial real estate market has witnessed substantial growth over the years, with an estimated value of USD 8.88 billion in 2023. As we look ahead, industry experts predict that this sector will continue to expand, reaching a projected value of USD 12.83 billion by 2031. This impressive growth is expected to be driven by a Compound Annual Growth Rate (CAGR) of 7.65% from 2024 to 2031.
Malaysia Commercial Real Estate Market Dynamics
The Malaysian commercial real estate market is undergoing significant transformations, driven by a complex interplay of factors that impact both investors and occupiers alike. Key market dynamics shaping this sector include:
Government policies such as the National Development Policy (NDP) 2010-2020, which has been replaced by the National Economic Policy (NEP) 2021-2030, continue to influence the commercial property landscape in Malaysia.
Rental income growth is expected at an average annual rate of 6.7% over the next five years, as indicated by data from JLL. This represents a key driver for investors seeking to secure returns on their investments in Malaysian commercial real estate.
The popularity of coworking spaces and flexible leasing options has become increasingly prominent in Malaysia's office market, with demand expected to rise at an average annual rate of 7.4% over the next five years, according to JLL.
Foreign investment in Malaysia's commercial property sector is also a significant consideration, with overseas investors drawn to the country's strategic location and business-friendly environment.
The increasing trend towards sustainable development and energy efficiency is influencing the design and construction of Malaysian commercial buildings, with green building certifications such as BIM 360 GSA gaining traction among developers and investors.
Key Market Drivers
Key Challenges
Key Trends
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Malaysia Commercial Real Estate Market Regional Analysis
A closer look at the Malaysia commercial real estate market reveals diverse trends across different regions, with varying levels of investment potential and growth prospects. The Klang Valley, which encompasses Kuala Lumpur and its surrounding areas, remains a hub for international business and commerce, with average rental yields ranging from 7-9%.
Kuala Lumpur
Johor Bahru
Malaysia Commercial Real Estate Market: Segmentation Analysis
Malaysia Commercial Real Estate Market, By Type
The Malaysian commercial real estate market is distinguished into six key segments: Offices, Retail, Industrial, Logistics, Multi-family, and Hospitality. Notably, offices account for the largest share of this sector. Kuala Lumpur, being the country's economic and financial core, has a significant demand for office spaces, particularly in prominent areas such as the Golden Triangle and Mid Valley. The presence of multinational corporations, government agencies, and financial institutions contributes to the high demand for premium office buildings, driven by their growing presence in Malaysia. Additionally, the country's emerging status as a regional business and technology hub intensifies the need for office spaces, further solidifying its position in the market.
Malaysia Commercial Real Estate Market, By Application
The Malaysian commercial real estate market is distinctively segmented into various categories, each catering to unique needs and applications. Corporate & Commercial Use stands out as the leading application, primarily driven by Kuala Lumpur's status as the country's financial and business hub. Here, multinational corporations, government agencies, and financial institutions converge to create a thriving demand for office spaces, business parks, and mixed-use developments.
Key statistics reveal that this sector accounts for a substantial share of the market, with significant investments in modern office buildings, especially those located within prime areas such as the Golden Triangle. This concentration of corporate activity underscores Kuala Lumpur's stature as a prominent regional business center.
Malaysia Commercial Real Estate Market, By Geography
Malaysia's commercial real estate landscape is comprised of two primary markets: Kuala Lumpur and Johor Bahru. The country's capital, Kuala Lumpur, holds a dominant position due to its status as the political, financial, and cultural epicenter. As a result, significant investment has been directed towards office space, retail complexes, and industrial real estate, catering to both local and international businesses.
Kuala Lumpur boasts an impressive infrastructure, modern amenities, and a well-developed transit network, making it an attractive choice for companies operating in the region or globally. The city's major commercial districts, such as the Golden Triangle and Bukit Bintang, have become hubs for sleek office skyscrapers, high-end retail stores, and luxury hotels.
Key statistics highlight Kuala Lumpur's appeal: 1.3 million people call the city home, while its GDP stands at approximately $420 billion.
Key Players
The Malaysia Commercial Real Estate Market is a thriving industry that offers a unique blend of global market insights and local expertise. By examining the major players in this space, including S P Setia, IOI Properties Group, Sime Darby Property, Sunway Group, UEM Sunrise, Mah Sing Group, Eco World Development Group, Lendlease, Hap Seng Land, and YTL Corporation, you can gain a deeper understanding of the opportunities and challenges that lie ahead.
Our comprehensive market analysis delves into the financial performance of prominent industry leaders, offering in-depth insights into their financial statements, product benchmarking, and strategic assessments via SWOT analysis. The competitive landscape section provides a detailed examination of key development strategies, market share, and global market rankings for these major players, enabling stakeholders to make informed decisions.
Malaysia Commercial Real Estate Market Key Developments
Report Scope
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Meet the Malaysian Property Giants Who Shape Our Cities
In the world of property development, there are a few names that stand out from the rest. Here are some of the most prominent players in Malaysia's industry.
1. S P Setia - With over 30 years of experience, S P Setia is one of the largest property developers in Malaysia, boasting an impressive portfolio of developments valued at RM63 billion.
2. IOI Properties Group - This family-owned company has been a leading player in Malaysia's property market for over 30 years, with a valuation of RM45 billion and a reputation for delivering quality developments.
3. Sime Darby Property - As one of the largest property developers in Malaysia, Sime Darby Property has a valuation of RM43 billion and a long history of creating iconic developments that shape our cities.
4. Sunway Group - With a rich history spanning over 60 years, Sunway Group is a household name in Malaysia's property industry, valued at RM38 billion and known for its innovative approach to development.
5. UEM Sunrise - This leading developer has been shaping Malaysia's skyline for over 40 years, with a valuation of RM34 billion and a reputation for delivering high-quality developments that exceed
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Research Methodology of The Research Insights:
Reasons to Purchase this Report
Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
Provision of market value (USD Billion) data for each segment and sub-segment
Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
Provides insight into the market through Value Chain
Market dynamics scenario, along with growth opportunities of the market in the years to come
6-month post-sales analyst support
Frequently Asked Questions
What is the projected market size & growth rate of the Malaysia Commercial Real Estate Market?
What are the key driving factors for the growth of the Malaysia Commercial Real Estate Market?
What are the top players operating in the Malaysia Commercial Real Estate Market?
What segments are covered in the Malaysia Commercial Real Estate Market report?
How can I get a sample report/company profiles for the Malaysia Commercial Real Estate Market?
Frequently Asked Questions About This Report
1What is the projected market size & growth rate of the Malaysia Commercial Real Estate Market?
Malaysia Commercial Real Estate Market was valued at USD 8.88 Billion in 2023 and is projected to reach USD 12.83 Billion by 2031, growing at a CAGR of 7.65% from 2024 to 2031.
2What are the key driving factors for the growth of the Malaysia Commercial Real Estate Market?
Economic Growth And Urbanization, Government Initiatives And Infrastructure Development, Rise Of E-Commerce And Industrial Demand are the factors driving the growth of the Malaysia Commercial Real Estate Market.
3What are the top players operating in the Malaysia Commercial Real Estate Market?
The major players are S P Setia, IOI Properties Group, Sime Darby Property, Sunway Group, UEM Sunrise, Eco World Development Group, Lendlease, Hap Seng Land, And YTL Corporation.
4What segments are covered in the Malaysia Commercial Real Estate Market report?
The Malaysia Commercial Real Estate Market is Segmented on the basis of Type, Application, And Geography.
5How can I get a sample report/company profiles for the Malaysia Commercial Real Estate Market?
The sample report for the Malaysia Commercial Real Estate Market can be obtained on demand from the website. Also, the 24*7 chat support & direct call services are provided to procure the sample report.
1 INTRODUCTION OF MALAYSIA COMMERCIAL REAL ESTATE MARKET
1.1 Overview of the Market
1.2 Scope of Report
1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
3.1 Data Mining
3.2 Validation
3.3 Primary Interviews
3.4 List of Data Sources
4 MALAYSIA COMMERCIAL REAL ESTATE MARKET OUTLOOK
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 MALAYSIA COMMERCIAL REAL ESTATE MARKET, BY TYPE
5.1 Overview
5.2 Offices
5.3 Retail
5.4 Industrial
5.5 Logistics
5.6 Multi-family
5.7 Hospitality
6 MALAYSIA COMMERCIAL REAL ESTATE MARKET, BY APPLICATION
6.1 Overview
6.2 Corporate & Commercial Use
6.3 Retail and Consumer Services
6.4 Logistics & Warehousing
6.5 Hospitality & Tourism
6.6 Leisure and Lifestyle
7 MALAYSIA COMMERCIAL REAL ESTATE MARKET, BY GEOGRAPHY
7.1 Overview 7.2 Asia
7.3 Malaysia
7.4 Kuala Lumpur
7.5 Johor Bahru
8 MALAYSIA COMMERCIAL REAL ESTATE MARKET COMPETITIVE LANDSCAPE
8.1 Overview
8.2 Company Market Ranking
8.3 Key Development Strategies
9 COMPANY PROFILES
9.1 S P SETIA
9.1.1 Overview
9.1.2 Financial Performance
9.1.3 Product Outlook
9.1.4 Key Developments
9.2 IOI PROPERTIES GROUP
9.2.1 Overview
9.2.2 Financial Performance
9.2.3 Product Outlook
9.2.4 Key Developments
10 KEY DEVELOPMENTS 10.1 Product Launches/Developments
10.2 Mergers and Acquisitions
10.3 Business Expansions
10.4 Partnerships and Collaborations
11 Appendix
11.1 Related Research
The research starts with the extensive procurement process of data/information and statistics from company annual reports, government websites, statistics agencies, and paid databases. This information creates a base for the study. The information also helps to define the scope and to narrow down the area for study for the market. This raw information is processed and analyzed to extract crisp data points which currently affect or are likely to affect the industry during the forecast period. After analyzing the information, a proprietary statistical tool is used for market estimation and forecast, which generates the quantitative figures of the market/sub-segments in the current scenario as well as for the forecast period.
After estimating the markets and estimates, the numbers are verified with industry participants and key opinion leaders. The wide network of industry participants add value to the research and verify the numbers and estimates provided in the study. At the last stage of the research process, a final report is prepared, which is then published on different websites as well as distributed through various channels. The below figure contains the different stages of the research process to produce the report.
1.1 DATA MINING
Data mining is an extensive part of our research process. It involves the procurement of market data and related information from different verified and credible sources. This step helps to obtain raw information about the industry and their Drivetrain, the monetary process for different end uses, the pool of market participants, and the nature of the industry and scope of the study. The data mining stage comprises both primary and secondary sources of information.
1.2 SECONDARY RESEARCH
In the secondary research process, various sources are used to identify and gather industry trends and information for the research process. We at TRI have access to some of the most diversified and extensive paid databases, which give us the most accurate data/information on markets Customers, and pricing. Mentioned below is a detailed list of sources that have been used for this study. Please note that this list is not limited to the names as mentioned; we also access other data sources depending on the need.
1.3 PRIMARY RESEARCH
In the primary research process, in-depth primary interviews are conducted with the CXOs to understand the market share, customer base, pricing strategies, channel partners, and other necessary information. Besides, in-depth primary interviews are conducted with the CXOs of vendors, channel partners, and others to validate the supply-side information. In addition, various key industry participants from both the supply and demand side are interviewed to obtain qualitative and quantitative information on the market. In-depth interviews with key primary respondents, including industry professionals, subject matter experts (Corporates), industry consultants, and C-Component executives of major companies, are conducted to obtain critical qualitative and quantitative information pertaining to the market, as well as to assess the prospects for market growth during the forecast period. Detailed information on these primary respondents is mentioned below.
1.4 FORCASTING TECHNIQUES
We at Markstats Research Insights Private Limited follow an extensive process for arriving at market estimations, which involves the use of multiple forecasting techniques as mentioned below.
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