Press Release: Juwai IQI Report: Home Rents Stabilise in Good News for Affordability
Kuala Lumpur, 10 June 2025 – New data from Juwai IQI shows average rents declined or stabilised across most market segments in Q1 2025. That is good news for renters and affordability, according to remarks released today by Juwai IQI Co-Founder and Group CEO Kashif Ansari.
“Cost-of-living pressures could be easing for many households,” he said. “The average Malaysian rent fell to RM2,020 in Q1, down from RM2,052 in Q4, the first decline in a year. Despite the quarterly drop, rents remain 5.2% higher than in Q1 2024.
“If you look at just the top 10% of rents, you can get a picture of the most expensive end of the market. The average rent in this luxury category in the first quarter was RM5,300, which is nearly unchanged from the prior quarter. How much do you have to pay to be in the top 10% of rents in the first quarter? The minimum is RM3,400.
State-Level Performance: Kuala Lumpur Rises
“While national rents declined slightly in Q1, at the state level, Kuala Lumpur saw both quarterly and annual growth.
“The average rent in Kuala Lumpur increased by 1.9% quarter-on-quarter, rising to RM2,901, which is well above the national average of RM2,020. Kuala Lumpur also leads in year-on-year growth, with rents up 6.0%, outpacing the national 5.2% rise. That is a sharp recovery from the prior two quarters of weaker performance. Kuala Lumpur remains the strongest rental market in the country, driven by the powerful economic engine of Malaysia’s biggest city.
“While Kuala Lumpur rents climbed 1.9% in Q1, Selangor rents declined 0.9%.
“The Home Rental Index, which tracks long-term changes in rent prices, further reflects this divergence. Kuala Lumpur (82.1) and Selangor (88.7) both remain well above the national index value of 75.1, indicating that despite short-term volatility, rents in these states have grown faster over time.
“Rents are not just stabilising, they’re also diverging across segments. That creates targeted opportunities for investors. Since luxury rents are resilient, and the top 10% showed minimal movement, demand for premium units seems to remain strong. High end units may be a smart investment for those with the means.
“The data suggests another thing to me. It’s that rental markets are behaving like a leading indicator of regional economic strength. Kuala Lumpur’s growth mirrors its rising job creation and foreign investment. The state’s performance shows how real estate reflects broader economic momentum, and it reinforces Kuala Lumpur’s role as the country’s biggest growth engine.”
— end of press release —
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