Malaysia’s industrial property market shifts beyond the data centre boom
Fewer transactions mask resilient demand as investments shift to strategic, high-value assets
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[KUALA LUMPUR] The blockbuster wave of data centre investments that propelled Malaysia’s industrial property market over the past two years may be fading, but the sector itself is far from losing steam.
Instead, demand is shifting towards a broader mix of advanced manufacturing, logistics and artificial intelligence-related industries that continue to underpin industrial land values.
Industrial property transactions declined 20.8 per cent quarter on quarter to 1,889 deals in the first three months of 2026, while transaction value fell around 28 per cent to RM7.3 billion (US$1.8 billion), according to the National Property Information Centre.
