Kuala Lumpur to see over 1.2m sq ft of new retail space by H2 2026

Thanks to two major mall completions.

Three new suburban malls totalling 2.36 million sq ft opened in Greater Kuala Lumpur in the latter part of 2025, strengthening the retail market while continuing to attract international brands, according to JLL. Sunway Square Mall and KLGCC Mall recorded strong opening occupancies, while Hextar World soft-launched with 1.8 million sq ft of retail space.

JLL noted that demand for prime retail space remains robust, with international retailers such as Byredo, Smith & Wollensky, Charles Tyrwhitt, 13de Marzo, Lotteria, Longjing and Kumo Kumo entering the market or expanding their presence. Consumer confidence, supported by stable employment, government stimulus measures and tourist arrivals, also contributed to resilient leasing demand across both City Centre and suburban malls.

Looking ahead, JLL said City Centre will see two major completions by H2 2026—Ombak KLCC and 118 Mall—adding 1.27 million sq ft of retail space. While overall vacancy is expected to rise with the new supply, prime locations are anticipated to attract quality tenants, and experiential retail trends will continue to shape the market as landlords innovate to meet evolving consumer expectations.