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).
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 said assets, locations and strategies must remain relevant to occupiers, investors, communities and the future economy.
"As we look towards 2026, several themes stand out across Malaysia, 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,” he said at the CBRE WTW Malaysia Real Estate Market Outlook briefing here, today.
Tan also said Malaysia’s residential property market outlook remains selectively positive, with price movements expected to be measured rather than broad-based across the sector.
Meanwhile, the commercial property market is expected 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.
"We believe that quality properties, whether landed or high-rise, that are well located and reasonably priced will continue to see demand. We expect price increases to remain moderate, possibly exceeding three per cent,” he said.
Meanwhile, Tan noted 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.
He added that 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 benefitting from the programme, as it targets foreign buyers as one of the main purchaser groups for high-rise and high-end developments,” he said.
On the broader market outlook, Tan said the newly signed Malaysia-United States Agreement on Reciprocal Trade (ART), together 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, he said 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. - Bernama
