Malaysia

Malaysia is continuing its trend of huge growth and the real estate sector is emerging as one of the key sectors that significantly boost the foreign direct investment (FDI) in the country.

Experts predict a huge wave of foreign direct investment into the real estate sector this year as the profile of property is raised as a viable and attractive investment commodity.

The country allows for the foreign freehold ownership of real estate with an excellent legislative framework in place that is conducive for the attraction of FDI, the Central Bank of Malaysia said recently.

Malaysia is considered as Asia’s hidden gem for investors particularly from the Middle East. Investors are attracted to Malaysian property because the country offers them impressive investment growth potential, an opportunity to dominate the luxury property development landscape, a location where infrastructure is improving, where the investment climate is transparent, and more importantly, where there is access to competitive fund options including Shariah-compliant Islamic finance solutions.

Natural beauty, a fantastic climate, and an ever growing tourism industry provides foreign investors with a fantastic investment opportunity

There is significant external investment that is driving the property market in Malaysia especially in resort areas

There is also significant local demand in over-spill residential catchment areas around Singapore, for example Johor

The cost of property is still significantly lower than neighbouring South-East Asian countries including Thailand with huge potential for new development and growth

Demand for new-build property far outstrips supply which will result in 'highly energised' appreciation in 2007

Tourists from the Middle East especially the Arab Gulf countries have long favoured Malaysia as a popular holiday destination and now the investors are flocking to the ‘land of true Asia’ to buy a dream home, invest in a hotel or resort or get a slice of share in the emerging property market.

Meanwhile, the Prime Minister’s office said that foreigners will be allowed to buy residential properties without approval from the Foreign Investment Committee and there will be no restrictions on usage and the number of units purchased. Developers welcome the government’s move to relax the rules for foreigners to purchase high-end residential properties in the country.

The benefits of Malaysia as a destination for a property investor are manifold and stem primarily from the strength of the country’s economy.

Malaysia’s economy is going strong and the property market will see tremendous change in the next few months, Deputy Prime Minister Najib Tun Razak said.

The base lending rate and the attractive packages offered by banks, will also encourage the property market to prosper.

The feel-good factor is making a comeback in Malaysia and this augurs well for the residential market, economy and the people.

Malaysia has recently unveiled a $105 billion blueprint to turn the area around its second-largest city, Johor Baru, into a prosperous Asian metropolis.

Malaysia's vision is to make south Johor the new international address for business, investment, leisure and culture.

The projected growth target for the region is 10 per cent per annum.