KUALA LUMPUR: Global real estate consulting firm JLL has maintained an optimistic outlook on market activity in Malaysia, aligning with positive macroeconomic expectations.

In a statement, JLL Malaysia head of research and consultancy Yulia Nikulicheva said that in the first quarter (1Q) of 2024, it anticipates potential notable transactions in Malaysia.

“We are observing the keen interest of both international and domestic investors who are carefully evaluating opportunities across all sectors,” she said.

JLL Asia Pacific capital markets chief executive officer Stuart Crow said that while the cost of debt remained elevated, investors across Asia Pacific are still erring on the side of caution.

“The prospect of interest rate cuts in 2024 may potentially reverse current trends, but we can expect greater sector diversification among investors, particularly towards sectors such as logistics and industrial and living, which have seen high investor conviction across the region,” he said.

According to JLL, commercial real estate investment in Asia Pacific rose three per cent year-on-year (y-o-y) to US$31.6 billion (1US$ = RM4.78) in the 4Q 2023 after seven consecutive quarters of decreasing volumes.

JLL said that in 4Q 2023, an uptick in volumes provided some upside after a challenging year that saw overall investment across the region decline by 17 per cent y-o-y to US$106.8 billion.

It said China stood at the forefront of Asia Pacific’s investment rebound for the second consecutive quarter, recording a 50 per cent y-o-y increase in volume to US$11.1 billion.

“Sectors such as logistics (decreased five per cent to US$6.5 billion) and living (rose 24 per cent to US$1.5 billion) performed better than other sectors, especially in China.

“Investments in office, down 13 per cent y-o-y to US$13.7 billion, continued to contract amid uncertainties on interest rate movements, the extent of re-pricing and occupancy,” it added. – Bernama