Real estate in Kuala Lumpur has become a favorite investment destination because of the steep rise in prices of property. The valuation of real estate property in these cities has seen a growth of almost 1500 percent over the last twenty years. Massive migration from rural areas to urban areas and an increase in the services sector and tertiary sector of the economy have led to an enormous demand for housing. With most cities having an infrastructure that cannot cope with so many migrants, suburbs have begun to spring up around them. Look at luxury residence kl for more information about luxury residence in Kuala Lumpur.
Kuala Lumpur is the Mecca of real estate in Malaysia and has some of the most expensive properties in Malaysia. The state of real estate in Kuala Lumpur can be gauged from the fact that even a shanty or slum in the more posh parts of Kuala Lumpur will sell for upwards of Rs 1 crore.
Kuala Lumpur Suburbs
Kuala Lumpur’s position also adds to its woes, as land is a scarce commodity for the island city. While suburbanization is something that Kuala Lumpur has taken to many years ago, the current trend points to the city expanding even further. An average two-bedroom flat in the distant suburb of Kuala Lumpur now costs approximately 1,196 RM. Look at exclusive residence for more information about exclusive residence in Kuala Lumpur.
Kuala Lumpur desperately needs low-cost urban housing and redevelopment to keep with the needs of the people that live there. Another fact that must be noted is that more and more office buildings, malls and IT parks are being constructed by demolishing old buildings. Kuala Lumpur still has a lot of lands locked away in defunct mills, the redevelopment of which could ease the burden on the city. The latest trend is to go vertical and build 20-50-story buildings. These skyscrapers lend themselves to ensuring that Kuala Lumpur populations remain high.
Similarly, with regards to real estate in Selangor, most people prefer to live in the new suburbs rather than the congested city center. These suburbs now feature ultra-modern apartments, which are cheaper than properties in the city center and are closer to the IT parks where the younger generation works. Many young people have also shown a marked preference to buy a newly constructed property, which is first hand rather than second-hand property. The second-hand property market, too, has benefitted from the boom in Kuala Lumpur’s real estate prices and sees a healthy demand.
Kuala Lumpur Real Estate
Similarly, Kuala Lumpur real estate scenario shows a similar trend, with many new property buyers preferring to buy houses in the northern suburbs. The redevelopment of a lot of old and decrepit buildings in the central suburbs of the city has meant that people who held property there have seen the value of their holdings shoot up overnight. Look at luxury residence for more information about luxury residence from Aira Residence in Kuala Lumpur, Malaysia.
While the property is an illiquid asset, many people believe that the rising valuations will ensure that they will be able to sell their property off for a profit. The real estate market has been affected by the slowdown, and people expect the prices to rationalize before demand rises again.