ccording to The Wealth Report 2025 by Knight Frank, family offices worldwide are increasing their exposure to real estate, recognising its potential for long-term growth and wealth preservation.
The report reveals that 44 per cent of global family offices plan to expand their real estate investments in the coming 18 months, with particular attention to living sectors, industrial and logistics, as well as luxury residential properties.
For Malaysia, this trend arrives at an opportune moment. As the nation positions itself as a regional nexus for family offices, its real estate sector—steeped in strategic potential and bolstered by policy foresight—is poised to redefine how wealth is cultivated, preserved, and passed forward.
According to Knight Frank’s survey of 150 family offices managing over US$84 billion in assets, 28 per cent expanded their property portfolios in the past 18 months, outpacing those scaling back by nearly double. Offices, luxury residences, and industrial spaces dominate current holdings, but the future lies in what Liam Bailey, Knight Frank’s global head of research, terms the “living sectors”—a trifecta of residential, industrial/logistics, and high-end housing.
“The living sectors, industrial/logistics, and luxury residential are the top areas of focus,” Bailey notes, reflecting a global pivot toward assets that marry functionality with aspirational value.
Yet this isn’t mere opportunism. Real estate’s appeal lies in its duality: it is both tangible and symbolic, a safeguard against inflation and a statement of legacy. Property offers a rare confluence of utility and prestige for family offices, which often balance financial pragmatism with dynastic ambition.
Malaysia’s ambition to become Southeast Asia’s family office hub is neither sudden nor serendipitous. Strategic tax incentives, streamlined regulations, and a maturing financial ecosystem have quietly transformed the nation into a magnet for ultra-high-net-worth individuals (UHNWIs) and institutional capital.
Allan Sim, Knight Frank Malaysia’s senior executive director of land and industrial solutions, underscores this: “Industrial and logistics real estate offers sustainable investments with long-term redevelopment angles. Demand in Greater KL, Johor, and Penang remains robust.”
But Malaysia’s allure isn’t confined to factories and warehouses. Luxury residential properties and premium office spaces in urban centres like Kuala Lumpur continue to draw discerning investors. These assets, Ooi explains, resonate with those seeking “stable returns and long-term value”—a sentiment echoed by global family offices increasingly wary of volatile markets.
Knight Frank’s report also reveals another quiet revolution: 63 per cent of millennial-led family offices have already allocated capital to sustainable investments, compared to 35 per cent of their baby boomer counterparts. This generational handover isn’t just changing portfolios; it’s redefining priorities. Environmental, social, and governance (ESG) considerations now shape real estate strategies, with next-gen leaders demanding assets that align with ethical benchmarks and climate resilience.
Malaysia’s bid to become a family office hub is more than policy or geography—it’s a testament to foresight. By leveraging industrial growth, urban sophistication, and sustainable innovation, the nation offers a blueprint for wealth stewardship in an uncertain world. As Amy Wong, Knight Frank Malaysia’s executive director of research and consultancy, concludes: “Real estate’s resilience and the rise of next-gen priorities position it as a cornerstone of family office strategies.”
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