REITs originated in the United States in the 1960s, but it wasn’t until 2005 that Axis REIT became the first property trust to be listed on Bursa Malaysia.

In Malaysia, there are now 14 REITs to choose from on the Main Market, offering investors a choice to own stakes in commercial, industrial, plantation and office real estate.

Aside from being more liquid than investing in real estate, one of the reasons why REITs are more appealing than investing in actual real estate is because of its high yield.

Gross dividend yield in the FTSE Bursa Malaysia index is about 2.9%, while the average yield for a REIT in Malaysia is about 8%.

REITs yield higher returns because commercial real estate generates a huge amount of cash flow from rentals.

If one invests in real estate though, it may be hard to charge the most preferred rental rate, even if the property had been purchased for a hefty price, simply due to market forces.

As for REIT prices on the stock market, they generally tend to be “low risk” because their prices are sustained by the yield factor, hence the volatility element is reduced.

Even so, REITs are not immune to economic difficulties.

REITs such as AmFirst, Hektar, UOA and Axis hit their lowest point in the middle of the financial crisis in 2008 but have since recovered to their pre-crisis prices, if not better.

Part of their recovery, says an analyst, is due to good management, good investor relations and a proven track record when it comes to acquisitions.

Still, one critic of REITs says it is probably more worthwhile to purchase stocks of established companies if they want to play safe.

Advocates of the property trust point to the fact that REITs are a different investment class altogether, choosing to view them as an investment that bridges the gap between a fixed deposit and the stock market.

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Kuala Lumpur boasts some extremely high quality real estate and prices to match. While navigating through the stormy waters of Malaysian property law and red tape, it is important to have a trusty real estate agent in KL to support you.

There are many agencies that cater purely to the expat market with staff that speak perfect English and are well briefed on the idiosyncrasies of the Malaysian housing market compared to buying in the West. Those seriously considering purchasing a property in Kuala Lumpur should ensure that they first read our comprehensive guide which contains everything regarding buying houses and land.

Many of the best agents keep well-maintained websites with a comprehensive inventory of their current stock, and this can be a great help for buyers who don’t want to waste their time with inappropriate selections. Many people who are looking to buy property in KL as an expat are busy at work and do not have sufficient time to fully examine all the possibilities.

All our selections below are trusted recommendations although it is important for expats looking for Kuala Lumpur real estate agents to vet their own choice and ask for advice.

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