This article first appeared in City & Country, The Edge Malaysia Weekly on January 26, 2026 - February 1, 2026

Both locally and globally, the commercial, industrial and hospitality sectors have seen increased demand, translating into attractive investment opportunities here and abroad, according to the speakers at Rehda (Real Estate and Housing and Developers’ Association) Institute’s CEO Series 2026, which was held on Jan 15.

Titled “Reinventing Growth: Innovation and Investment Opportunities in Asean & Malaysia”, this year’s conference featured stakeholders from the government and private sector, including the banking and finance, manufacturing, construction, real estate and property development industries. The full-day event featured discussions on the macroeconomic outlook, investment and capital flows, and the evolving role of real estate in driving sustainable growth.

The conference was organised by a joint organising secretariat comprising Rehda Institute as well as several associations, government bodies and property developers.

In his keynote address, Deputy Minister of Tourism, Arts and Culture Chiew Choon Man said Malaysia’s tourism industry was set for a robust performance, underpinned by the Visit Malaysia 2026 (VM2026) campaign and encouraging visitor numbers in recent years.

In 2024, Malaysia welcomed 38 million international visitors, surpassing pre-­pandemic levels and generating RM106 billion in tourism receipts. Domestic tourism also remained strong, with nearly 300 million local trips contributing about RM100 billion in spending.

Chiew observed that the accommodation sector is evolving, with room offerings and traveller profiles changing. “Malaysia has established 15,000 accommodations, ranging from world-class hotels and resorts to modern serviced apartments, charming homestays and alternative stays. Our hotels and resorts are no longer merely physical assets. They have transformed into a vibrant platform for lifestyle, culture and community engagement.”

He noted that today’s travellers are diverse, with three main groups contributing to rising demand: young professionals and digital nomads who seek co-living and extended stays; families and business travellers who want hybrid long-stay options; and bleisure/remote work travellers who stay longer and spend more locally.

Chiew emphasised that to build on this, hotel owners would need to rethink and reposition their assets in response to evolving travel trends. He noted that when accommodation spaces function as productivity hubs and social connectors, visitors are more likely to extend their stays, engage more deeply with local communities and generate additional value for small and mid-sized retailers and service providers, underscoring that this represents not only a shift in tourism but is also a significant economic opportunity.

Also present at the conference were Minister of Finance II Datuk Seri Amir Hamzah Azizan and Minister of Transport Anthony Loke Siew Fook.

The conference offered individual presentations and panel discussions divided into two sessions: Stream A, titled “Future of Rental Living: Institutional Capital & New-Economy Real Estate: Recurring and Alternative Income Assets”; and Stream B, titled “Future-Proofing Real Estate: Unlocking Tourism Growth and Recurring Income Opportunities in a Changing Market Landscape”.

Part of Stream A, presenting on the topic of “Global Capital & Rental Housing: Unlocking Investment Potential in BTR, Co-Living and Hybrid Living Across Singapore & Australia”, CBRE Australia director of Asian services and capital markets Heng Jing Jun said Australia’s growing population would lead to increased demand for commercial real estate.

“Over the next 10 years, Australia’s population is expected to grow by about 15%. For each million in population growth, we expect that it translates into additional demand for commercial real estate. That roughly translates into 4.5 million sq m of industrial warehouse logistics space, 800,000 sq m of office space, 420,000 new apartments or residential units, 25,000 additional space for childcare, 11,500 hotel rooms and over 3,000 hospital beds.”

He added that there was a significant supply and demand imbalance in the commercial property market, with upcoming supply expected to fall short by 20% to 50% compared to the last 10 years. He highlighted the contrast between the last 10 years of supply and the forecast supply, indicating a shortfall in certain asset classes.

Thus, Heng said the most attractive sectors for investment include residential apartments and build-to-rent (BTR) units. He explained that vacancy rates and limited new supply are driving strong rental and capital growth, particularly in areas like Sydney, Melbourne and Brisbane.

Industrial and logistics assets remain highly sought after due to rising consumer demand and increased infrastructure investment, he added. Additionally, hotels, healthcare facilities and student accommodation are benefiting from the tourism recovery and migration.

Heng said there were other opportunities emerging in office repositioning, adaptive reuse and land-banking strategies. These sectors have sustained interest from global institutional and high-net-worth investors, he added.

Speaking on the topic “European Living Models Shaping the Future of Rental Demand: Built-to-rent, Multifamily and Flexible Living”, Savills UK head of European living research and consultancy Richard Valentine-Selsey said the UK’s residential sector, particularly institutional living, offers investment opportunities.

According to Valentine-Selsey, the institutional living sector includes multifamily rents, student housing and emerging formats, with student accommodation being the most established in the UK. He added that there were about 750,000 student beds across the UK and the sector had attracted about £4.5 billion (RM24.5 billion) in investments over the past five years.

“Following graduation, many individuals move into co-living, an emerging segment that caters to graduates, young professionals and, in some cases, students. This is still a relatively small but fast-growing sector, with around 12,000 operational beds across the UK, typically located in city centres. Beyond this, the market transitions into multifamily and single-family rental housing,” Valentine-Selsey explained.

He said rental growth in the private rented sector is forecast to average at 11.5% to 13% cumulatively across the UK over the next five years, with an annual growth rate of 2.5% to 3%.

When considering where to invest, Valentine-Selsey said it was important to understand where international students choose to study. Beyond student housing, another emerging area of interest is the co-living sector, he added.

“Of the UK’s 23 million adult population, about 10 million live in the private rented sector. Focusing on age and household type, the core co-living market is roughly two million, mainly in major cities, led by London, Manchester, Glasgow, Birmingham and Leeds.”

He elaborated that cities that successfully retain students after graduation tend to generate sustained demand for co-living and rental housing. He said outside London, cities such as Manchester and Glasgow retain a high proportion of graduates.

In the next session titled “Developer Pivot: Building Future-Ready Portfolios with Recurring and Alternative Income Assets”, Sime Darby Property Bhd (KL:SIMEPROP) group managing director and CEO Datuk Seri Azmir Merican explained how the property developer was branching out to increase its recurring income.

“The shift from a build-and-sell model requires a fundamental change in mindset, capital structure and organisational approach. While we are still very much a homebuilder and continue to build to sell, generating about RM4 billion in sales annually, the major shift is that we are also building to lease. What is less visible is that we are now producing about RM5 billion worth of build-to-lease assets.”

According to Azmir, the objective is to build a more financially resilient business with stable, recurring income that reduces exposure to market cycles.

“Across the real estate value chain, we see opportunities to structure each stage as an investable product, from land development funds to specialised asset development funds and recycling vehicles. Higher risk should, in theory, deliver higher returns,” he said.

Azmir noted that its strategy was ultimately about allocating a portion of capital to generate long-term recurring income and grow its assets under management. “Today, we manage about RM3 billion, with RM5 billion in progress. By 2026 or 2027, this should reach RM8 billion, and over the next five to seven years, potentially RM15 billion to RM20 billion. This is not a complex business, but it requires patience,” he added.

“There will be higher debt levels, but every increase in debt will be supported by improved earnings visibility. Fundraising is also a learning curve, but as we build a track record, confidence will grow.”

Speaking on how Gamuda Land expanded its footing in the UK, Gamuda Land UK head Niall Emmet Farmer said the developer’s strategy had been to generate consistent returns through a diversified portfolio and active asset management.

“We see early mover opportunities in the commercial sector, particularly in the London office market. Some opportunities are re-emerging rather than new. When we acquired 75 London Wall, Covid-19 [pandemic] had left office demand uncertain, and the return-to-office trend was still evolving amid hybrid work policies,” he added.

Farmer said the investment decision in 2023 was not predicated on a full return to office working, but on the fact that demand had normalised to the long-term average while supply remained constrained.

“City office take-up has consistently tracked around the 10-year average, with demand increasingly focused on newer, refurbished and Grade A assets. On the supply side, annual completions in the city have remained capped at around three million to four million sq ft, with no evidence of a sustained surge even at the peak of the cycle.”

As an income opportunity, best-in-class office assets offer long-term income durability in a strongly inflationary market, he said.

“We are also seeing renewed interest in fringe city locations such as Shoreditch and Aldgate. Late last year, a city fringe asset traded at nearly a 6% cap rate with a weighted average lease expiry of 13 years and over eight years to break-even. Assets like these could see even better value today, particularly as demand spills over from the core city market and ESG (environmental, social and governance) requirements increasingly influence occupier decisions.”

Another area of opportunity is industrial and logistics. He said major third-party logistics providers were increasingly seeking high-quality, ESG-compliant facilities that support technological advancement and supply-chain efficiency.

“Core markets benefit from strong demand, rental growth, limited new supply and low vacancy, alongside strong exit liquidity and institutional demand. Location is critical, particularly access to consumers. The golden triangle offers access to 90% of the UK population within a four-hour drive and continues to experience an acute supply-­demand imbalance, driving rental growth.”

In his presentation titled “Healthcare & Wellness Tourism: New Real Estate Opportunities in Medical Cities and Integrated Health Districts”, KL Wellness City executive director of branding, sales and marketing Datuk Seri Vincent Tiew observed how healthcare and wellness elements had gone from being supporting features to core components of real estate development.

“The question is no longer whether healthcare should be integrated into your real estate development,” he said, citing post-pandemic changes in demographics, lifestyles and healthcare needs.

Demographic change is a key driver of health and wellness elements. “By 2030, more than 15% of the Malaysian population will be more than 60 years old,” Tiew noted, pointing to rising demand for senior living and medically supported housing.

Medical tourism is another major focus. Malaysia is targeting two million foreign medical visitors by 2026, supported by internationally accredited hospitals, cost advantages and strong cultural appeal. Tiew said the sector was resilient, adding that “regardless of pandemic or not, healthcare remains the key area”.

He cautioned, however, that integrating healthcare into property development was complex and cannot be approached in the same way as conventional assets. “If you don’t own a hospital, it’s very hard to make it happen,” he said, underlining the need for early master planning and close collaboration with medical professionals.

Tiew said developments which genuinely integrate healthcare can achieve stronger differentiation, greater resilience and longer-term tenancy stability, positioning wellness-led real estate as a strategic, long-term play rather than a branding exercise.

Foster + Partners (Thailand) partner and director Sunphol Sorakul, in his presentation titled “New Luxury Real Estate Ideas from Thailand: Crafting Regenerative Wellness & Eco-Destination Developments for Long Recurring Income”, spoke on how wellness was reshaping the tourism and hospitality design. He framed the discussion around a simple premise: people travel today for three fundamental reasons — wellness, experience and positive impact.

According to Sunphol, travel is increasingly motivated by the desire to escape stress, urban pressure and routine while seeking destinations that support physical and emotional well-being. He noted that wellness is no longer limited to spa offerings, but is shaped by the overall environment, from access to nature and daylight to comfort, air quality and noise control.

Experience is the second major driver of travel, as Sunphol explained that travellers increasingly value journeys that are curated through space and movement, not just services or amenities. Architecture, he said, can shape how guests experience a destination by guiding them through a sequence of moments that create memory, meaning and emotional connection.

The third driver, positive impact, reflects growing awareness among travellers of their environmental and social responsibilities. Sunphol stressed that destinations and hospitality assets were expected to demonstrate initiatives to reduce environmental impact, promote the use of local skills and materials while contributing positively to surrounding communities. These considerations are becoming part of how travellers assess quality and value.

For Arnaud Girodon, CEO of Datai Hotels and Resort Sdn Bhd, regenerative design and sustainability-led asset management has become a key focus in Datai Langkawi. His session was titled “Beyond Profit Margins: Datai Langkawi’s Strategic Investment in Sustainable Luxury for Enduring Brand Equity and Generational Appeal”.

He noted that environmental protection can be integrated into luxury hospitality without compromising commercial performance. He explained how the resort, located in Langkawi’s Unesco Global Geopark, was developed with long-term environmental protection as a core consideration.

This approach is operationalised through The Datai Pledge, a sustainability framework established in 2019. The framework functions as an operating model, embedding sustainability across departments rather than treating it as a standalone corporate social responsibility (CSR) initiative.

“It functions more as an operating framework rather than a CSR programme. These four pillars are Pure for the Future (revolves around responsible operation and waste reduction), Fish for the Future (marine conservation), Wildlife for the Future (rainforest regeneration) and Youth for the Future (education and community engagement programme),” said Girodon.

He added that more than 85% of its guests had voluntarily contributed to conservation and sustainability programmes, with repeat guests accounting for about 39% of the total visitation. According to him, the resort’s regenerative positioning has supported longer stays, increased guest loyalty and sustained premium pricing.

The last presentation was delivered by Malayan United Industries Bhd (KL:MUIIND) (MUI Group) senior vice-president of operations Pel Loh. Titled “Data-Driven Strategic Asset Design: Future-Proofing Malaysian Hospitality Through Experience-Led Lifestyle Destinations VM2026”, she highlighted how changing travel behaviour and the VM2026 campaign were reshaping hospitality development strategies.

Loh emphasised that hotel assets must be designed not only for current demand, but also for how travellers will choose and use hotels over the next decade, further adding that VM2026 was a catalyst rather than a one-off boost.

“VM2026 is not just a demand spike. It is a year earmarked to accelerate tourism revenue and drive sustained growth over the next decade. Previous campaigns were held in 2007 and 2014. This campaign provides the growth momentum to carry the industry through to the next Visit Malaysia Year. As such, developers should view it as a value-creation window to enhance hospitality assets, and now is the time to invest in developing more of these assets.”

She highlighted that revenue diversification and Ebitda (earnings before interest, taxes, depreciation and amortisation) resilience as critical factors to boost hotel performance.

“Don’t just look at the room income. There are many things that you can actually create. It could be your MICE (meetings, incentives, conferences and exhibitions) facilities, lifestyle, wellness, F&B, spas and so forth. To build Ebitda resilience, risk mitigation needs to be considered at the design stage, with stable cash flows to manage both low and high cycles, especially in mixed-use integrated developments.”

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