By Dr Renesial Leong

The property market in Malaysia is poised for significant shifts in 2025, shaped by emerging trends and evolving priorities. Key factors likely to drive these changes include:

*1. Catering to an Aging Population*
By 2030, approximately 15% of Malaysia’s population will be aged 60 and above, presenting vast opportunities in senior housing and lifestyle solutions. This demographic shift calls for well-designed retirement resorts, senior-friendly homes like single-story houses, accessible apartments, and multigenerational living options. There’s also growing interest in independent resort-style living, creating niche markets in the property sector.

*2. Multiplier Effect from Holiday-makers*
Pent-up demand post-pandemic will remain a powerful driver as people increasingly prioritize creating meaningful travel experiences and cherished memories. This surge will boost short-term accommodations, including hotels and Airbnb, fostering economic recovery for tourism and hospitality sectors. Businesses across industries will benefit, triggering a multiplier effect that revitalizes the economy and fuels broader demand for retail, commercial, and residential properties.

*3. Rise of Sports and Recreation Demand*
The rising popularity of sports like pickleball, futsal, tennis, and the Malaysian-invented Jombola reflects a growing enthusiasm for active lifestyles. This trend has spurred demand for sports facilities, as evidenced by the recent surge in bookings for pickleball courts. In response, small and medium-sized industrial spaces are increasingly being repurposed into sports courts or used for manufacturing equipment to meet the demand. Meanwhile, traditional sports such as badminton continue to be pivotal in recreational development, contributing to a parallel increase in the sales and rental of related real estate.

*4. Sustainability and Climate Resilience*
The intensifying climate crisis, marked by extreme weather and severe floods, is reshaping buyer preferences. Green-certified properties emphasizing energy efficiency, water conservation, and waste management are becoming increasingly attractive. Projects adopting sustainable approaches—such as renewable energy, green building policies, and improved water and waste management—are likely to outperform others in the market.

In summary, Malaysia’s property market in 2025 will be defined by its ability to adapt to evolving demands, ranging from travel and recreation to senior living and sustainability. These trends underscore the importance of innovative, inclusive, and environmentally conscious developments to meet the diverse needs of a changing population.