Kuala Lumpur – Family offices worldwide are increasing their exposure to real estate, recognising its potential for long-term growth and wealth preservation, according to The Wealth Report, Knight Frank’s flagship publication.
Between November and December 2024, Knight Frank conducted in-depth interviews with 150 single and multi-family offices globally. The survey panel included 121 single-family and 18 multi-family offices, alongside 11 heads of more diverse structures. Representing 29 cities across Asia, Europe, the Middle East, and the Americas, participants were drawn from key financial hubs such as London, Singapore, New York, Geneva, Sydney, and Hong Kong SAR.
The surveyed family offices (FOs) collectively managed over US$84 billion in assets, with an average US$560 million in assets under management (AUM). Approximately 40% of these FOs had operating businesses with a specific focus on real estate.
Growing Investment in Real Estate
Real estate allocations have increased in the past 18 months, with 28% of family offices expanding their portfolios, compared to only 17% reducing their exposure. The most prominent sectors in current portfolios include:
- Offices (20%)
- Luxury residential (17%)
- Industrial (14%)
- Hotels (12%)
Liam Bailey, Global Head of Research at Knight Frank, commented: “Despite ongoing macroeconomic challenges, real estate remains a key pillar of investment strategies for family offices. Our survey shows that 44% plan to increase their exposure to real estate in the next 18 months, while only 10% expect to scale back. The Living sectors (14%), Industrial/logistics (13%), and Luxury residential (12%) are the top three areas of focus for future investments.”
Malaysia’s Push to Become a Family Office Hub
Malaysia is actively positioning itself as a leading regional hub for family offices, leveraging its strategic location, robust financial infrastructure, and evolving regulatory framework. The Malaysian government is offering incentives to attract ultra-high-net-worth individuals (UHNWIs) and family offices.
According to the Malaysian Investment Development Authority (MIDA), Malaysia’s growing reputation as a wealth management hub is reinforced by tax-friendly policies and diversified investment opportunities. The government has streamlined regulatory processes and introduced tax incentives to encourage family office participation, particularly in real estate and private equity. These efforts aim to increase foreign direct investment and strengthen Malaysia’s position as a financial hub.
Malaysia stands to benefit from the findings of The Knight Frank 150, a special family office survey conducted for The Wealth Report 2025. The survey, which included 150 global family offices managing over US$84 billion in assets, revealed that 44% of family offices plan to increase their real estate allocations over the next 18 months, with strong interest in commercial, industrial, and luxury residential properties.
Keith Ooi, Group Managing Director of Knight Frank Malaysia, said: “Malaysia’s vision of becoming a family office hub is supported by its strong real estate fundamentals and competitive investment landscape. Kuala Lumpur continues to attract wealth management firms, while Johor is gaining traction among investors seeking strategic opportunities in luxury residential and industrial assets.”
Johor is emerging as a key destination for real estate investment, driven by its strategic location near Singapore and its growing industrial and logistics sectors. The rapid expansion of e-commerce and regional trade has fueled strong investor interest. With increasing cross-border capital flows, Johor is strengthening its position alongside Kuala Lumpur as a prime hub for family office investments.
Malaysia’s Real Estate Landscape
Malaysia remains an attractive destination for family offices and high-net-worth individuals seeking diversification in real estate. The country’s strong infrastructure, expanding economy, and stable property market make it a strategic choice for long-term investments.
Allan Sim, Senior Executive Director of Land & Industrial Solutions at Knight Frank Malaysia, commented: “Industrial and logistics real estate emerges as one of the top sectors for family offices seeking strong and sustainable investments with a long-term redevelopment angle. Malaysia’s geographical advantages and proliferating infrastructure continue to drive stable demand for high-specification and sustainable industrial facilities, particularly in Greater KL, Johor and Penang. As global supply chain continues to refine due to geopolitical uncertainty coupled with the government’s effort in attracting FDIs into the country, industrial and logistics real estate should remain resilient.”
Ooi added: “Beyond industrial assets, Malaysia continues to see strong demand for premium office spaces and luxury residences, particularly in key urban centers. Investors are drawn to well-located, high-quality developments that offer stable returns and long-term value.”
Domestic vs. International Investments
Around 70% of real estate investments remain domestic, with family offices in New Zealand (93%), Australia (90%), and the US (86%) being the most domestically focused. Conversely, those in Switzerland (31%), Hong Kong SAR (33%), and Singapore (41%) have the most geographically diverse portfolios.
Most FOs consider real estate a medium- to long-term investment, with only 3% adopting a short-term outlook (under three years). Investment horizons are structured as follows:
- 32% targeting a three-to-six-year outlook
- 28% with a six-to-nine-year horizon
- 37% planning for more than nine years
The Role of Next-Generation Leaders
The generational shift in family office leadership is well underway. While baby boomers (ages 60–78) still hold the primary decision-making role in 50% of FOs, Gen X (44–59 years) leads 36%, and millennials (28–43 years) are beginning to take on leadership positions.
Among family offices actively involving the next generation, 47% have observed some strategic shifts, while 18% report significant changes. A clear trend is emerging:
- 63% of millennials have already allocated capital toward sustainable investments
- Only 35% of baby boomers have done the same
These findings highlight the evolving investment landscape, with younger generations shaping new strategies, particularly in ESG-focused real estate and impact investing.
Luxury Investments and Market Dynamics
Beyond real estate, luxury collectibles remain a significant asset class for high-net-worth investors. According to the Knight Frank Luxury Investment Index (KFLII) Q4 2024, trends in the luxury asset market are shifting:
- Handbags were the best-performing luxury asset in 2024, with a 2.8% price increase
- The overall KFLII declined by 3.3% for a second consecutive year
- Traditional luxury investments saw declines, including fine art (-18.3%), fine wine (-9.1%), and rare whisky (-9.0%)
- Meanwhile, jewellery (+2.3%), coins (+2.1%), and watches (+1.7%) experienced moderate gains
Changing buyer demographics, social media influence, and online marketplaces are reshaping the luxury investment landscape.
Conclusion
Malaysia’s efforts to establish itself as a family office hub align with global trends in wealth management and real estate investment. With strong regulatory support, financial incentives, and a maturing investment landscape, the country is well-positioned to attract more family offices seeking stability, diversification, and long-term growth opportunities.
Amy Wong, Executive Director of Research & Consultancy at Knight Frank Malaysia, commented: “The increasing real estate allocations among family offices underscore a clear shift in investment priorities. As seen in our findings, family offices are strategically increasing exposure to industrial, logistics, and luxury residential properties, particularly in key Asian markets. This trend reflects the long-term resilience of real estate as an asset class, as well as the evolving priorities of next-generation investors who seek stable, income-generating assets.”
Legal Disclaimer: The Editor provides this news content "as is," without any warranty of any kind. We disclaim all responsibility and liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. For any complaints or copyright concerns regarding this article, please contact the author mentioned above.
