Anticipated Rise in Housing Costs and Rental Rates Predicted by Real Estate Agents in 2024

Recent surveys and analyses conducted by leading real estate agencies signal a forthcoming significant upswing in both housing costs and rental rates in Malaysia for the upcoming year, as reported by industry experts.

 

 

According to findings released by IQI, a prominent global real estate agency network, and member of the Malaysia-based technology group Juwai IQI, a consensus among 203 real estate agents and negotiators, excluding Perlis, reveals prevailing optimism regarding the trajectory of the housing market in 2024. Only 5.0% of respondents anticipate a decline in property prices, with an even smaller 3.0% projecting a decrease in rental rates.

Mr. Kashif Ansari, co-founder and group CEO of Juwai IQI and IQI, emphasized the growing confidence within the real estate sector, noting that 91.1% of respondents advocate property purchase over renting. This sentiment is mirrored regionally, with 88.8% of respondents in Kuala Lumpur and Selangor expressing a preference for property ownership.

Analysts attribute this optimism to expected economic trends, investment inflows, infrastructure developments, and demand-supply dynamics. Projections indicate anticipated increases of 9.95% in residential prices and 9.57% in rental rates, fueling expectations of heightened investment activity and developer interest. Specifically, Kuala Lumpur and Selangor are poised to experience price hikes of 9.7% and rental escalations of 9.9%.

Furthermore, PropertyGuru Malaysia’s Property Market Outlook Report (PMO) 2024 identifies areas in Kuala Lumpur and Selangor with underserved housing demand, signaling opportunities for growth amidst the anticipated rise in housing costs and rental rates. The report highlights Bandar Sri Damansara, Bandar Baru Enstek, Serdang, Subang, and Jalan Sultan Ismail as potential property hotspots for 2024.

Despite challenges such as high inflation and elevated interest rates, real estate experts remain cautiously optimistic about the property market's performance in 2024. Increased focus on affordable housing units and strategic geographical areas, along with policy interventions and infrastructure developments, contribute to the resilience of the real estate sector amidst economic uncertainties.

With housing costs and rental rates expected to climb, stakeholders including investors, homebuyers, real estate agents, and developers are advised to strategize accordingly to capitalize on the evolving market dynamics in 2024.

 

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Conclusion

The Malaysian real estate market is poised for a significant surge in 2024, as forecasts and analyses from reputable real estate agencies project notable upswings in both housing costs and rental rates. Key indicators such as anticipated increases in residential prices and rental rates, coupled with burgeoning confidence among real estate agents and investors, underscore the potential for robust market performance in the coming year. Additionally, areas with underserved housing demand present opportunities for growth and investment. Despite challenges such as high inflation and economic uncertainties, the real estate sector in Malaysia remains resilient, buoyed by policy interventions, infrastructure developments, and shifting consumer preferences. Stakeholders are encouraged to stay informed, agile, and proactive in their approach to real estate investment and decision-making as they navigate the complexities and opportunities of 2024. By staying abreast of market trends and leveraging insights from industry experts, stakeholders can position themselves for success in the evolving Malaysian real estate market.

 

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