Knight Frank Malaysia | Real Estate Highlights 1st Half 2025

Malaysia’s real estate market continues to evolve amid global shifts and local demand.
Knight Frank Malaysia has launched the Real Estate Highlights 1H2025, decoding key trends across industrial, office, retail, hospitality, and residential sectors—driven by strategic investments, infrastructure growth, sustainability, and digitalisation.
Report highlights:
- Industrial Sector: Malaysia’s industrial sector is booming, driven by major data centre investments, FDI, and infrastructure projects, with Johor, Penang, and Sabah leading growth
- Office Market: Office demand holds steady with improved occupancy in key cities, fuelled by interest in green-certified and premium spaces
- Retail Sector: Retail remains resilient, with strong local spending and evolving mall concepts in Klang Valley, Penang, and rising suburban hubs
- Hospitality Sector: Tourism is rebounding strongly with over 25 million visitors, spurring hotel investments and growth across Malaysia
- Residential Market: The residential market is cautiously optimistic, with Johor and Sabah showing positive trends and ongoing support from government programmes