Newsletter

Malaysia's property market is entering a new phase where connectivity is becoming just as important as location. As fuel subsidy rationalisation, transport costs, toll charges, and vehicle ownership expenses continue to rise, buyers and investors are increasingly evaluating properties based on the real cost of daily commuting rather than distance alone.This shift is strengthening demand for transit-oriented developments (TODs) located near MRT, LRT, KTM, and future rail networks, positioning them as one of the most resilient segments of the residential market.Rising Mobility Costs Are Changing Property DecisionsFor many households, commuting costs extend far beyond petrol expenses. Parking fees, toll charges, vehicle maintenance, depreciation, and time spent in traffic all contribute to the overall cost of living.As these expenses increase, homes located near major public transport networks become more attractive. Properties with strong transit connectivity can offer meaningful monthly savings while improving convenience, making them increasingly appealing to both owner-occupiers and tenants.TOD Properties Offer Stronger Rental AppealThe growing focus on transport affordability is also benefiting the rental market. Tenants are increasingly factoring commuting costs into their housing decisions, creating stronger demand for properties with direct access to rail networks and employment hubs.However, not every property near a station will perform equally. The strongest TOD assets typically combine walkability, mature amenities, job accessibility, quality management, and competitive pricing. These factors help support long-term occupancy, rental demand, and value retention.Connectivity Becomes a Long-Term Value DriverWhile suburban properties can continue to perform well through factors such as school catchments, land scarcity, and community infrastructure, connectivity is becoming a more important driver of future property value.As transportation costs remain elevated, properties that reduce commuting expenses may enjoy stronger demand and greater resilience across market cycles.OutlookTOD properties are expected to remain one of the most attractive residential investment themes in Malaysia throughout 2026. As households place greater emphasis on mobility costs and convenience, demand for well-connected developments should continue to strengthen. For buyers and investors, evaluating a property's proximity to public transport may become just as important as assessing its price, size, or location.Download to see insights from other country marketsDownload

Central Kuala Lumpur's rental market is entering a more stable phase after experiencing one of its strongest rental growth cycles in recent years. Following a sharp increase in rents during 2024, rental rates across key city-centre postcodes have begun to moderate, signalling a healthier and more sustainable market environment.Rental Growth Normalises After Strong GainsAccording to IQI transaction data, average rents in Central Kuala Lumpur peaked in early 2024 after reaching a seven-year high. Rental rates rose significantly during the post-pandemic recovery period, supported by the return of expatriates, stronger economic activity, and growing demand for city-centre living.However, rental growth has since started to stabilise as market conditions normalise. While rents remain elevated compared to previous years, the pace of growth has slowed, creating a more balanced environment for both landlords and tenants.Luxury Properties Continue to Influence Market AveragesOne of the key factors behind the rental spike was the strong performance of luxury residential developments. Premium projects in locations such as Banyan Tree Signatures Pavilion, Four Seasons Place, St Mary Residences, and Hampshire Park achieved some of the highest rental rates in the city due to their prime locations, direct access to lifestyle amenities, and proximity to major business districts.This highlights an important market dynamic: headline rental averages are often influenced by a relatively small number of ultra-luxury transactions rather than broad-based rental increases across all property segments.Affordability Remains Available Across the MarketDespite rising averages, Central Kuala Lumpur continues to offer a wide range of rental options. While luxury units can command rents above RM10,000 per month, many tenants continue to secure quality accommodation within the RM3,000 to RM5,000 monthly range.This suggests the market remains accessible to a broad tenant base, supporting long-term occupancy and sustainable rental demand across different property categories.OutlookCentral Kuala Lumpur's rental market is expected to remain stable throughout the second half of 2026. As unusually strong rental growth figures from 2024 gradually fall out of annual comparisons, further moderation is likely. However, continued demand for prime urban living, limited supply of high-quality units, and Kuala Lumpur's attractiveness as a regional business hub should continue supporting rental values over the long term.Discover More HereDownload

Italy's property market remains resilient in 2026, supported by steady price growth, healthy rental demand, and continued interest in major urban centres. While buyers are becoming more selective, strong fundamentals in key cities continue to support long-term investment opportunities across the country.Prime Cities Continue to OutperformOne of the clearest trends in 2026 is the growing gap between Italy's prime cities and more affordable regional markets. Milan remains the country's premium property market, with average asking prices exceeding €6,500 per square metre, while Florence, Rome, and Bologna continue attracting demand from both local and international buyers.These cities benefit from strong tourism activity, established business centres, international demand, and limited housing supply, helping support stable price growth despite a slower economic environment.Buyers Focus More on Value and Rental PotentialWhile transaction activity remains healthy, buyers are becoming more cautious and selective. Market participants are placing greater emphasis on location quality, transport accessibility, rental demand, and long-term investment potential rather than simply chasing lower prices.Rental demand continues to be a major support for the market. Cities such as Milan and Florence benefit from strong tenant demand and premium rental pricing, while more affordable markets including Turin, Genoa, Palermo, and Catania are attracting investors seeking higher yields and lower entry costs.Stable Market with Long-Term OpportunitiesItaly is increasingly being viewed as a market driven by fundamentals rather than speculation. Existing homes continue to outperform new developments, reflecting stronger demand for established properties in mature neighbourhoods. At the same time, a wide range of entry points allows investors to choose between premium capital growth markets and more affordable yield-focused locations.This diversity remains one of Italy's key strengths, offering opportunities across multiple buyer profiles and investment strategies.OutlookItaly's property market is expected to remain stable throughout the second half of 2026. While price growth may moderate compared to previous years, strong rental demand, international buyer interest, and limited supply in major cities should continue supporting market fundamentals. For investors, success will increasingly depend on selecting the right city, location, and asset quality rather than relying on broad market growth.Download to see insights from other country marketsDownload

Malaysia is accelerating its transformation into a regional logistics powerhouse through a growing rail-linked trade corridor connecting key ports, inland logistics hubs, and international freight networks. As cargo volumes continue rising, the country's infrastructure strategy is increasingly focused on improving efficiency, reducing transportation costs, and strengthening cross-border trade connectivity.Building a National Logistics LandbridgeAt the centre of this strategy is a logistics corridor linking Perlis Inland Port (PIP), Port Klang, Port of Tanjung Pelepas (PTP), and the East Coast Rail Link (ECRL). Together, these projects form a nationwide network designed to move cargo more efficiently between Malaysia's northern, southern, eastern, and western gateways.The goal is to reduce reliance on road transportation and strengthen Malaysia's position as a regional trade hub by improving rail-based freight movement across the country.Strengthening Regional and International TradeMalaysia's logistics ambitions extend beyond domestic connectivity. Through integration with the Pan-Asian Railway Network, cargo can move from Malaysia through Thailand and into China more efficiently. The ASEAN Express rail service has already demonstrated the potential of faster freight movement, significantly reducing transit times compared to traditional sea routes.The country's major ports continue to play a critical role in this growth. Port Klang and Port of Tanjung Pelepas collectively handle tens of millions of containers annually, reinforcing Malaysia's importance within global supply chains and regional trade flows.Logistics Becomes a Long-Term Growth SectorGrowing trade volumes, infrastructure investment, and stronger regional connectivity are expected to support long-term expansion within Malaysia's logistics sector. Industry projections indicate continued growth as businesses seek more efficient supply chains and alternative transportation routes across Southeast Asia.As rail, port, and inland logistics infrastructure become increasingly integrated, Malaysia is positioning itself to capture a larger share of regional trade and logistics activity in the years ahead.OutlookMalaysia's logistics sector is entering a period of significant transformation, supported by major infrastructure projects and growing regional trade demand. With the ECRL, Perlis Inland Port, and broader rail connectivity initiatives moving forward, the country is strengthening its role as a strategic gateway between ASEAN and China. While last-mile connectivity remains an important challenge, the long-term outlook for Malaysia's logistics and trade ecosystem remains positive.Discover More HereDownload

India's commercial real estate sector is entering a new phase of growth, supported by strong economic expansion, rising business activity, and growing demand for high-quality office space. Valued at US$50.29 billion in 2024, the sector is projected to grow at a CAGR of 18.5% through 2030, making it one of the fastest-growing segments within India's property market.Record Office Demand Drives Market MomentumThe office market started 2026 on a strong footing, recording historic absorption levels across major cities. Leasing activity remained robust as businesses continued expanding operations, while new supply remained relatively limited in key commercial hubs.A major contributor to this growth is the continued expansion of Global Capability Centres (GCCs), which account for a significant share of office demand. At the same time, multinational corporations and Fortune 500 companies continue increasing their presence across major business districts, reinforcing India's position as a leading global office market.Grade-A Offices Become the Preferred ChoiceOne of the strongest trends shaping the market is the growing preference for Grade-A and ESG-compliant office spaces. Occupiers are increasingly prioritising sustainable, energy-efficient, and modern workplace environments that align with long-term corporate goals.This shift is creating stronger demand for premium office assets while older secondary office buildings face higher vacancy levels. Combined with limited new completions, the trend is supporting rental growth and strengthening landlord bargaining power across major Tier-1 cities.Tightening Supply Supports Long-Term GrowthThe combination of strong leasing demand and tightening vacancy levels is creating favourable conditions for investors and developers. Vacancy rates across India's office market have fallen significantly, reflecting healthy occupier demand and improving market fundamentals.Supported by infrastructure upgrades, economic growth, and rising institutional investment, commercial real estate is increasingly viewed not only as a business necessity but also as a long-term investment opportunity.OutlookIndia's commercial real estate market is expected to remain one of the strongest-performing property sectors in Asia. Demand for Grade-A office buildings, GCC expansion, and sustainable workspaces should continue driving leasing activity and rental growth. As supply tightens and occupier demand remains healthy, the sector appears well-positioned for sustained long-term growth through the remainder of 2026 and beyond.Download to see insights from other country marketsDownload

Iceland's housing market is showing signs of renewed strength in 2026, supported by rising home prices, easing inflation, and a slowing construction pipeline. As new project activity declines and supply growth moderates, market conditions are gradually shifting in favour of sellers.Housing Prices Continue to RiseNational housing prices increased 0.62% month-on-month in March 2026, accelerating from February and lifting annual growth to 2.61%. Reykjavik continued to lead market performance, with capital area home prices rising 0.8% monthly and 2.82% year-on-year. Detached homes recorded the strongest gains, while apartment prices remained stable and continued posting annual growth.Construction Activity Continues to SlowA key trend shaping the market is the decline in construction activity. Active construction projects fell to 6,172 units nationwide, marking the sharpest contraction since the post-2023 building peak. Completions are now outpacing new project starts, suggesting future housing supply may become increasingly constrained.At the same time, building cost pressures have eased, indicating that the slowdown is being driven more by softer development activity and weaker demand conditions than by rising construction expenses.Inflation Moderates but Interest Rates Remain HighInflation is showing signs of improvement, with annual CPI easing to 5.2% in April. However, Iceland's policy rate remains elevated at 7.5%, continuing to weigh on borrowing conditions and housing affordability. While rate cuts are anticipated later in the year, financing costs remain a key factor influencing market activity.OutlookIceland's housing market appears to be entering a new phase of recovery. Rising prices, declining construction activity, and easing inflation are gradually improving market fundamentals. While high interest rates continue to limit affordability in the short term, a potential easing cycle in the second half of 2026 could support stronger buyer activity and create a more active market environment heading into 2027.Download to see insights from other country marketsDownload

Hong Kong's property market continued to show mixed performance in early 2026, with the office sector facing ongoing challenges while residential demand remained relatively resilient. Although leasing activity in some office districts softened, healthy housing transactions and stable home prices suggest buyer confidence remains intact in key residential segments.Office Market Faces Ongoing PressureThe office market recorded negative net absorption during the quarter, reflecting cautious corporate expansion and continued vacancy challenges in certain districts. While leasing activity remained active in selected prime locations, performance varied across submarkets. Central continued to demonstrate resilience, supported by rental growth and improving occupancy, while some fringe office districts remained under pressure.Despite these challenges, major corporate commitments continued to support the market. Large leasing transactions and investment activity indicate that occupiers remain focused on quality buildings in strategic locations.Residential Demand Holds FirmThe residential market delivered a stronger performance, supported by healthy transaction activity and stable pricing. First-quarter residential transactions reached their strongest level in several years, reflecting improving buyer sentiment and continued interest in well-located projects.Home prices remained largely stable, while new launches continued attracting attention from both owner-occupiers and investors. Demand for premium and luxury properties also remained active, highlighting confidence in Hong Kong's long-term residential market fundamentals.Selective Market Favouring Quality AssetsOne of the key themes emerging in 2026 is growing selectivity among buyers and investors. Demand is increasingly concentrated in well-located residential projects, prime office assets, and quality developments with strong long-term fundamentals. Rather than broad-based market growth, performance is becoming more dependent on asset quality and location.This trend is creating opportunities for investors who focus on resilient sectors while remaining cautious toward weaker-performing segments.OutlookHong Kong's property market is expected to remain selective through the second half of 2026. While the office sector may continue facing pressure from elevated vacancies, residential demand is likely to remain supported by stable pricing, healthy transaction volumes, and continued interest in quality developments. Markets with strong fundamentals and strategic locations are expected to outperform as investors prioritise resilience and long-term value.Download to see insights from other country marketsDownload

Greece's real estate market remains one of Europe's strongest-performing lifestyle and investment destinations in 2026, supported by a robust tourism outlook, steady foreign investment, and growing demand for coastal properties. With more than 38 million international visitors expected and tourism revenue projected to exceed €22 billion, confidence remains strong across both the hospitality and residential sectors.Coastal Properties Continue to Lead DemandThe country's positive tourism outlook is translating into stronger demand for coastal homes, holiday residences, hospitality assets, and development land. Popular destinations such as the Athens Riviera, Cyclades, Crete, and mainland coastal regions continue attracting both international buyers and investors seeking long-term lifestyle and rental opportunities.Greece's Golden Visa programme also remains a major driver of foreign investment. While entry thresholds have increased in certain prime locations, opportunities still exist in emerging markets, helping sustain international buyer interest across the country.Investors Focus on Long-Term ValueBuyer preferences are increasingly shifting towards quality construction, energy-efficient homes, year-round locations, and sustainable rental yields. Rental returns of approximately 4% to 7% continue attracting investors looking for both income generation and long-term capital appreciation.Despite higher construction costs and limited housing supply in some locations, strong international demand continues to support price growth. Property values in key regions are still increasing by approximately 8% to 10% annually, reflecting the strength of Greece's tourism-driven property market.OutlookGreece is expected to remain one of the Mediterranean's most attractive property investment destinations throughout 2026. Continued growth in international arrivals, tourism spending, and foreign investment should support demand for coastal homes, hospitality assets, and lifestyle properties. As buyers increasingly focus on long-term value and rental income potential, Greece's property market remains well-positioned for sustainable growth.Download to see insights from other country marketsDownload