Kuala Lumpur net office absorption to hit 0.2m sq ft next year

Positive absorption is expected to persist in the near term.

Net absorption in Kuala Lumpur’s office market is forecast to reach 0.2 million sq ft in 2025, and Cushman and Wakefield analysts say it is likely to continue its positive trend in the coming years, driven by economic recovery and government initiatives.

“Vacancy is expected to remain stable at 28%, and expected to fall with positive take-up rates in prime office properties. Despite steady growth in net absorption, absorption will be outpaced by increasing net supply, leading to a slight increase in vacancy rates up to 2026,” the analysts said.