Juwai IQI : After Record Grand Prix Crowd, What’s Next for the Empty Land Around the F1 Track and KLIA?
The Formula 1 Gulf Air Bahrain Grand Prix in Malaysia attracted more than 260,000 spectators to the PETRONAS Sepang International Circuit1 and brought new attention to the sprawling, 8,537-acre expanse of developable land around the Kuala Lumpur International Airport, in Sepang, where the circuit sits.2 This site, called the Aeropolis, is bigger than Cyberjaya, yet is mostly empty. but is unlikely to ever be the location of large-scale and much-needed affordable housing, Juwai IQI Co Founder and Group CEO Kashif Ansari today released four predictions for the site.
What’s Next for KLIA Aeropolis
Mr Ansari said, “I have four predictions for what’s next for the Aeropolis around KLIA. The first is that industries directly related to air travel will make up the bulk of investment over the next 10 years. Instead of theme parks, expect cargo operators and companies that maintain aircraft. This will partly be supported by China’s decision to use KLIA as it’s cargo gateway for the whole ASEAN region.3
“For Chinese companies. the area is an attractive location. Alibaba’s logistics subsidiary already operates a 60-acre fulfillment hub there. Xiamen University’s Malaysia campus is located in nearby Serinia City, and Chinese logistics and hospitality companies will be among the biggest tenants in the Aeropolis.
“Second, I expect new hotel developments near KLIA. The Grand Prix proved that there just aren’t enough hotel rooms near the airport. Room rates tripled for race weekend.4 At least one major hotel brand is likely to act on that knowledge within the next couple of years.
“The success of the Grand Prix will also create a debate about bringing Formula One back to Malaysia via a multi-year commitment. Malaysia has the fans, it has the expertise, and it has the track. All it’s missing is the races.5
“My fourth prediction is that data centres will seek to build in the Aeropolis. A solar park is now under construction and will start operation next year. There’s also room for more sustainable energy generation. This, combined with the abundant land, solves two of the most important problems facing data centres, and other operators who require abundant power.
“The Aeropolis is a crucial commercial site in the Klang Valley and will become an increasingly important part of the national economy in the years ahead.”
Not the Right Place for Homes
“If we were to build homes on the land around the airport at the same density as a typical Sepang township, it could hold about 48,000 homes,” said Mr Ansari. “But that won’t happen.”6
“And while it might be convenient to live in the Aeropolis because of the abundant local jobs and services, it probably wouldn’t be desirable. Airplane noise and safety zones make the land in the airport district an unsuitable place to put thousands of homes.
“What the Klang Valley needs the Aeropolis to host, on the other hand, is business activity. It needs office buildings, warehouses, distribution centres, advanced factories, data centres, and even solar farms, as well as leisure and retail spaces. Airports are powerful, economic dynamos that can create clusters of businesses around them, but only if there is space for them to grow.
“Airports are so important for economic growth that one expert said that cities used to build airports, but now airports build cities.7 Kuala Lumpur is lucky because the land set aside for development at KLIA is larger than the entire city of Cyberjaya and also bigger than the entire main airport in Bangkok.8
“Analysts at PwC believe KLIA Aeropolis will contribute RM30 billion to the country’s gross domestic product and create 56,000 jobs over a 15-year period.”9
Land Near the Airport Is Marked for Commercial Use
Mr Ansari said that a subsidiary of Malaysia Airports Holdings Berhad (MAHB) holds a long-term lease from the government that gives the company the right to develop the more than 8,000 acres of land.
“The master plans for the site are focused not on housing but on business clusters, because that’s the highest and best use for that land, given its proximity to the airport,” he said.
“MAHB’s development plan envisions clusters for aerospace and aviation businesses and for cargo and logistics operators. The original plan also set aside 200 acres for convention and exhibition centres and business hotels, as well as 500 acres aside for a theme park, concert halls and golf courses.10 However, that no longer seems to be a priority for the site.”
Abundant Homes Are Located Nearby
“While the aerotropolis itself won’t host residential communities, there are many private townships nearby. These are popular with employees who work at the airport precinct or in nearby Putrajaya and Cyberjaya.11
“The local area is a major employment hub, mostly because of the airport and related businesses. However, it’s also well connected to the rest of Kuala Lumpur. With either KLIA Ekspres or the KLIA Transit train, you can get to KL Sentral in about a half hour.12 The area is also well connected via the highway network.
“Across the whole Sepang district, the median home price over the 12 months to June of 2026 was RM577,500, or about RM357 per square foot. Terrace homes in nearby Salak Tinggi are only about 15 kilometres from the airport and sell for a median price of RM434,000.13
“Home owners in nearby Salak Tinggi and Dengkil will benefit from generally rising prices as the number of businesses and jobs at the Aeropolis grow.”
2https://theedgemalaysia.com/article/carveout-klia-aeropolis-99year-leasehold-status-major-needle-mover-mahb analysts-say
3https://bernama.com/en/news.php?id=2431185
4https://www.malaymail.com/amp/news/malaysia/2026/07/28/the-f1-effect-hotel-rates-around-sepang-spiked-on booking-platforms-ahead-of-october-race-weekend/229294
5https://thesun.my/sports/f1/fia-president-malaysia-needs-five-year-business-plan-for-f1-return/
6Serenia City, whole township near KLIA, has 13,234 residential units, plus infrastructure and mixed uses, on 2,370 acres, or about 5.6 homes per acre. https://theedgemalaysia.com/article/serenia-city-launch-two-phases-worth-rm440- mil-next-year
7https://www.aeropolis.com.my/
8https://earth.jaxa.jp/en/earthview/2009/11/18/004/index.html
9https://theedgemalaysia.com/node/409905 ; https://www.propertyguru.com.my/property
news/2016/5/125982/malaysia-to-build-klia-aeropolis
10https://www.malaymail.com/news/malaysia/2014/06/12/malaysia-to-convert-oil-palm-plantations-into-airport city/685803
11https://theedgemalaysia.com/node/409905
12https://airports.malaysiaairports.com.my/en/klia1/air-travel/public-transport?tab=train
13https://www.propertygenie.com.my/transaction-and-statistics/residential/selangor/sepang ; https://www.propertygenie.com.my/transaction-and-statistics/residential/selangor/sepang/28-residence-taman-orkid salak-tinggi
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