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Kuala Lumpur’s Rental Hotspots: Where Yields Reach Up to 11.1%

Kuala Lumpur’s property market is showing renewed strength, and one of the clearest signals comes from its rental performance. According to the latest market report by the National Property Information Centre (NAPIC), apartments and condominiums in the central region are now delivering yields from 1.5% up to 11.1%. For foreign buyers and long-term investors, this reflects not just a rebound but also a competitive advantage compared to other Southeast Asian capitals.

The Surge in Rental Yields

Rental yields, which measure annual rent against property value, have become the benchmark for gauging real estate performance. In Kuala Lumpur, yields had been moderate during the pandemic, but tenant demand has come back strongly as international mobility returns and infrastructure expands.

NAPIC data highlights striking growth in several locations:

Where the Hotspots Are

The central region, which covers Kuala Lumpur and nearby corridors, has emerged as the clear rental hotspot. Within this market, several areas stand out:

KLCC and the Golden Triangle

Properties around Kuala Lumpur City Centre remain at the top of expatriate wish lists. Proximity to office towers, five-star hotels, and lifestyle malls like Suria KLCC ensures a constant flow of corporate tenants. While purchase prices here are higher, rental demand supports competitive yields, particularly in well-managed luxury developments.

Mont Kiara and Sri Hartamas

Mont Kiara continues to lead as the preferred address for international residents, especially Japanese and Korean expatriates. International schools, retail options, and easy access to highways anchor its demand. Just next door, Sri Hartamas appeals to younger tenants and professionals, with rental growth in developments such as Plaza Damas reflecting its rising popularity.

Bangsar South

Once an industrial pocket, Bangsar South has reinvented itself as a business and tech hub. With multinational firms and start-ups based in its integrated office and retail towers, residential demand has surged. Rental yields here, exceeding 10% in some cases, underline its strength as a modern live-work-play location.

Taman Tun Dr Ismail (TTDI)

TTDI is one of Kuala Lumpur’s most established suburban addresses. Known for its family-friendly environment, green spaces, and community feel, it balances lifestyle with accessibility. Rental growth of over 11% shows its continued ability to attract long-term tenants.

Bukit Jalil and Sungai Besi

South of the city centre, areas like Bukit Jalil and Sungai Besi are gaining traction. The ongoing expansion of the MRT network, including the Circle Line, will make these areas more accessible, boosting their long-term rental prospects. For tenants, these locations offer affordable rents compared to the city core, while still being well-connected.

Why Rents Are Rising

Several key factors explain the strength of Kuala Lumpur’s rental market:

Return of expatriates: With global mobility restored, companies are once again relocating staff to Kuala Lumpur.
Infrastructure growth: New MRT and LRT lines, along with developments like the Tun Razak Exchange (TRX), are creating new demand corridors.
Relative affordability: Compared with Singapore, Hong Kong, or Bangkok, Kuala Lumpur offers more space at a lower entry cost.
Residency schemes: Initiatives such as Malaysia My Second Home (MM2H) encourage foreign residents, many of whom prefer to rent before buying.

Investor Takeaways

For investors, one clear message emerges: not all properties in Kuala Lumpur deliver the same returns. Yields range from as low as 1.5% to over 11%, depending on location, demand drivers, and tenant profile.

City-centre residences suit investors targeting corporate leases and prestige addresses.
Suburban enclaves like Bangsar South and TTDI offer balanced yields with lifestyle appeal.
Emerging corridors such as Bukit Jalil may present future upside as infrastructure projects mature.

This creates flexibility depending on an investor’s strategy, whether focused on high rental income or longer-term appreciation.

Balancing Yield and Liveability

For many foreign buyers, property in Kuala Lumpur is not just about yield. The city offers a lifestyle advantage that blends affordability with quality. Families often look to suburban markets with schools and community facilities, while professionals gravitate toward central zones near transit and offices.

This dual appeal ensures Kuala Lumpur’s rental market is not overly dependent on one tenant group, adding resilience in shifting economic cycles.

Looking Ahead

With rental yields now reaching up to 11.1%, Kuala Lumpur is positioned as one of Southeast Asia’s most dynamic property markets. NAPIC’s latest report confirms strong leasing demand across both luxury city-centre residences and suburban lifestyle hubs. As connectivity improves and expatriate flows remain steady, investors can expect Kuala Lumpur to deliver both income stability and capital growth potential in the years ahead.