Best Cities to Buy Rental Properties in Malaysia – Detailed Analysis & Investment Recommendations

Investing in rental properties in Malaysia can be a lucrative opportunity, especially in key cities with strong rental demand, economic growth, and infrastructure development. This guide explores the best cities for rental property investment and recommends promising projects to consider in 2025.

Top Cities to Buy Rental Properties in Malaysia

1. Kuala Lumpur – The Capital & Business Hub

Why Invest?

Strong demand from expatriates, young professionals, and students.
High rental yields, especially in central areas like Bukit Bintang, KLCC, and Mont Kiara.
Well-developed infrastructure, including MRT, LRT, and highways.
Upcoming projects like MRT3 Circle Line will enhance connectivity.

Recommended Projects:

8 Conlay (KLCC) – Luxury serviced residence by Kempinski. Price: RM2.5 million onwards.
TRX Residences (Tun Razak Exchange) – Located within KL’s financial district. Price: RM1.5 million onwards.
Aria Luxury Residence (KLCC) – High-end living close to embassies and corporate offices. Price: RM1.2 million onwards.

2. Selangor – High Growth & Connectivity

Why Invest?

Growing urban population with high rental demand.
Major business and industrial hubs like Petaling Jaya, Shah Alam, and Cyberjaya.
Affordable property prices compared to Kuala Lumpur.
Good connectivity via highways (NKVE, LDP, ELITE) and public transport.

Recommended Projects:

Lake City @ KL North (Kepong) – Mixed development with waterfront lifestyle living. Price: RM800,000 onwards.
Tropicana Metropark (Subang Jaya) – Integrated township with MRT access and lifestyle facilities. Price: RM600,000 onwards.
Eco Sanctuary (Kota Kemuning) – Green living concept with gated community security. Price: RM900,000 onwards.

3. Penang – Island City with Tourism & Tech Growth

Why Invest?

Strong rental demand from tourists, students, and professionals.
Major industrial hub with multinational companies in Bayan Lepas.
UNESCO-listed George Town boosts tourism and short-term rentals.
Planned infrastructure projects like LRT expansion and Penang Transport Master Plan.

Recommended Projects:

The Light Waterfront Penang (Gelugor) – Luxury seafront development near Penang Bridge. Price: RM1.3 million onwards.
Southbay City (Batu Maung) – Integrated development close to Penang International Airport. Price: RM750,000 onwards.
Queens Waterfront (Bayan Lepas) – High-rise residences with seafront views and commercial hubs. Price: RM900,000 onwards.

4. Johor Bahru – Rising Economic & Industrial Hub

Why Invest?

Proximity to Singapore makes it a hotspot for expats and commuters.
Strong rental demand in Iskandar Malaysia economic zone.
Major developments like RTS Link (Rapid Transit System) between JB and Singapore.
Lower property prices compared to KL and Penang with good growth potential.

Recommended Projects:

R&F Princess Cove (City Centre) – Located next to the CIQ complex for easy Singapore access. Price: RM700,000 onwards.
Eco Botanic (Iskandar Puteri) – Premium landed homes within a green township. Price: RM1 million onwards.
Country Garden Danga Bay (Danga Bay) – Waterfront luxury living with strong rental appeal. Price: RM850,000 onwards.

5. Kota Kinabalu – Tourism & Real Estate Boom

Why Invest?

Strong tourism industry drives short-term rental demand.
Attractive beachfront and city developments.
Growing number of expatriates and digital nomads choosing KK as a base.

Recommended Projects:

The Shore (Kota Kinabalu City Centre) – High-end serviced apartments with hotel management. Price: RM950,000 onwards.
Sutera Avenue (Sembulan) – Prime mixed-use development near Imago Shopping Mall. Price: RM700,000 onwards.
Aeropod (Tanjung Aru) – Transit-oriented development close to KK Airport and Tanjung Aru beach. Price: RM800,000 onwards.

Conclusion: Where Should You Invest?

Each of these cities has strong rental potential, depending on your investment goals:

For high rental yields & expatriate demand – Kuala Lumpur (KLCC, Mont Kiara, TRX).
For affordability & long-term growth – Selangor (Shah Alam, Subang Jaya, Cyberjaya).
For short-term rental income – Penang (George Town, Batu Maung, Bayan Lepas).
For cross-border rental demand – Johor Bahru (Iskandar Malaysia, CIQ, Danga Bay).
For tourism-driven rentals – Kota Kinabalu (Tanjung Aru, Sutera Avenue, Aeropod).

💡 Tip for Investors: Research the rental demand, financing options, and potential return on investment before committing. Consider engaging a local property agent for better insights and rental management solutions.

By choosing the right location and project, you can maximize rental income and long-term capital appreciation in Malaysia’s property market.