Residential Real Estate - Malaysia

Malaysia

The Residential Real Estate market market in Malaysia is forecasted to achieve a staggering value of US$0.60tn by the year 2024.
This projection indicates a promising trajectory for the Malaysian real estate sector.
Furthermore, it is anticipated that the market will display a compounded annual growth rate (CAGR) of -0.84% between 2024 and 2028, ultimately resulting in a market volume of US$0.58tn by 2028.
When compared to other countries globally, China is expected to generate the highest value in the Real Estate market, reaching a remarkable figure of US$117.40tn in 2024.
This highlights the significant dominance of the Chinese real estate sector on the global stage.
Malaysia's residential real estate market is experiencing a surge in demand due to its attractive investment opportunities and favorable government policies.

Key regions: Europe, Asia, Australia, United States, Germany

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Analyst Opinion

The Residential Real Estate market in Malaysia has been experiencing significant growth and development in recent years. Customer preferences have shifted towards more modern and sustainable housing options, leading to the emergence of new trends in the market. Additionally, local special circumstances and underlying macroeconomic factors have played a role in shaping the current state of the market. Customer preferences in the Residential Real Estate market in Malaysia have evolved over time. Buyers are increasingly looking for properties that offer modern amenities and sustainable features. This includes properties with energy-efficient designs, smart home technology, and green spaces. The demand for such properties has led to an increase in the development of eco-friendly residential projects and the incorporation of sustainable practices in the construction industry. Trends in the market reflect these changing customer preferences. Developers are focusing on creating mixed-use developments that combine residential, commercial, and recreational spaces. This allows residents to have easy access to amenities such as shopping centers, restaurants, and parks within their own communities. The concept of integrated townships has gained popularity, offering residents a holistic living experience. Another trend in the market is the rise of high-rise condominiums and serviced apartments. These types of properties cater to the growing urban population and offer a convenient and modern lifestyle. Many of these developments are located in prime locations, providing residents with easy access to employment opportunities, transportation, and entertainment options. Local special circumstances have also influenced the Residential Real Estate market in Malaysia. The government has implemented various initiatives to promote affordable housing, particularly for low-income households. This has led to the development of affordable housing projects and the introduction of schemes such as rent-to-own programs. These initiatives aim to address the housing needs of the population and ensure that everyone has access to decent and affordable housing. Underlying macroeconomic factors have played a role in shaping the Residential Real Estate market in Malaysia. The country's stable economic growth, low interest rates, and favorable government policies have attracted both local and foreign investors. This has resulted in increased investment in the real estate sector, leading to the development of more residential properties. In conclusion, the Residential Real Estate market in Malaysia is experiencing growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for modern and sustainable housing options, the development of mixed-use projects, and the rise of high-rise condominiums are some of the key trends in the market. The government's focus on affordable housing and the favorable economic conditions have also contributed to the market's development.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.