Property Fundamentals Pass the Mid-Year Test
The first half of 2026 tested global property markets through regional security tensions, temporary repricing and changing financing conditions.
What followed was a rapid recovery and a clearer investment picture. Capital is now moving towards markets supported by demographics, infrastructure and policy, rather than short-term speculation.
The United Arab Emirates demonstrated strong resilience. Dubai recorded approximately AED 286 billion in property sales during H1 2026, the second-highest first-half result on record. Rental yields remain near 7%, while freehold ownership, tax-free rental income and Golden Visa eligibility continue to attract international investors.
Saudi Arabia is emerging as a new foreign investment destination following the introduction of its non-Saudi property ownership law in January 2026. Riyadh offers gross yields of around 7% to 9%, while apartment rents have risen nearly 20% year-on-year. More than 780 multinational companies have also committed to establishing regional headquarters in the Kingdom.
Malaysia and Japan Offer Different Strengths
Malaysia remains one of ASEAN’s most accessible growth markets. Property transactions reached RM241.9 billion in 2025, while Johor attracted a record RM110 billion in approved investment.
The upcoming Rapid Transit System Link between Johor Bahru and Singapore is strengthening interest near station locations, where selected units have already appreciated 18% to 20%. Prime transit-linked properties in the Klang Valley continue to offer yields of approximately 4% to 5%.
Japan provides a more defensive opportunity. The average price of a new condominium in Tokyo’s 23 wards reached ¥137.8 million, up 18.5%, while supply fell to its lowest level since 1973. High occupancy, transparent ownership rules and a weaker yen continue to support demand.
Outlook
The strongest property opportunities in the second half of 2026 are likely to be found in markets where policy reform, infrastructure investment and genuine demand support long-term returns.
The UAE and Saudi Arabia offer stronger yields, Malaysia provides accessible growth, while Japan remains a stable portfolio anchor.
