kuala lumpur: Global real estate consultancy JLL maintains an optimistic outlook on Malaysian market activity, in line with positive macroeconomic expectations.

Yulia Nikulicheva, head of research and consultancy JLL Malaysia, said in a statement that she expects to see notable deals in Malaysia in the first quarter of 2024 (Q1 2024).

“We are observing strong interest from domestic and international investors who are carefully evaluating opportunities across all sectors,” she said.

JLL Asia Pacific Capital Markets CEO Stuart Crow said while debt costs remained elevated, investors in the region remained erroneously cautious.

“While the expected rate cuts in 2024 could potentially reverse current trends, we expect to see further sector diversification among investors, particularly as investor confidence increases across the region. We can expect investment in areas such as logistics, industry, and lifestyle sectors, which are highly competitive.”

Commercial real estate investment in the Asia-Pacific region rose 3% year-on-year to US$31.6 billion (RM150 billion) in Q4 2023, after declining for seven consecutive quarters, according to JLL.

JLL said higher volumes provided some upside in the fourth quarter of 2023 after a difficult year in which total investment across the region fell 17% year-on-year to USD 106.8 billion.

According to the report, China was at the forefront of the Asia-Pacific region’s investment recovery for the second consecutive quarter, posting a 50% year-on-year increase in investment to $11.1 billion.

“Sectors such as logistics (down 5% to USD 6.5 billion) and livelihoods (up 24% to USD 1.5 billion) fared better than others, particularly in China.

“Office investment fell 13% year-over-year to $13.7 billion, and continued to shrink amid uncertainty about interest rate trends, the extent of price changes, and occupancy rates,” it added. – Bernama