Residential rental rates in central Kuala Lumpur have reached a plateau between RM4,500 and RM5,000 since the second half of 2024.
According to property firm Juwai IQI, these figures are expected to remain at this level through 2026.
Data compiled by the firm indicates that the average rent recorded over the past two years was RM5,300.
This analysis is based on more than 1,000 rental transactions across three specific postcode areas in the city center.
Postcodes and historical performance
The study focused on the 50200, 50450, and 55100 postcodes, which encompass the Chow Kit area and precincts adjacent to the Kuala Lumpur City Centre. Juwai IQI has been tracking this specific data set since 2018.
Co-founder and group chief executive Kashif Ansari noted that the market experienced significant fluctuations before reaching its current stability.
In the first half of 2024, rents peaked at an average of RM6,454.
This peak represented a 58 percent year-on-year increase. Ansari attributed this spike to a higher volume of luxury units being leased during that specific timeframe.
Recovery from pandemic corrections
The recent trend follows a volatile period triggered by the pandemic. In early 2021, the market saw a sharp correction where average rents plummeted to RM3,266, marking a 38 percent decline from pre-pandemic levels.
Following that low point, the market underwent a rapid recovery that pushed rates significantly higher before settling into the current range.
The firm’s outlook suggests that the market has moved past these sharp adjustments, entering a phase of consistency for tenants and landlords in the central business district for the foreseeable future.
