KUALA LUMPUR (Oct 28): Demand for green buildings in Malaysia is projected to surge significantly in the coming years, potentially reaching around 10 million square feet annually.

However, this demand is currently unmet, according to JLL Appraisal & Property Services Sdn Bhd (JLL Malaysia).

JLL Malaysia's head of research and consultancy, Yulia Nikulicheva said that an adequate supply of green buildings could be achieved either by upgrading the existing inventory or by constructing new structures.

“I believe this is a complex issue because many older buildings have the potential to be upgraded with green features.

“However, currently, the financial aspects are quite challenging, and some buildings may also be repurposed for other uses,” she said at a press conference for the third-quarter (3Q) 2024 Office Market Dynamics Report.

JLL Malaysia is a unit of Jones Lang LaSalle IP Inc, a global commercial real estate and investment management company listed on the New York Stock Exchange.

Nikulicheva noted that the green building market in Malaysia is performing well, although it still lags behind Singapore, which has a higher proportion of green space.

“Compared to Hong Kong, where the ratio of green space is relatively low, we are performing quite well,” she said.

Nikulicheva pointed out that some older office markets, such as those in Japan and Hong Kong, face greater challenges in transformation.

“In Malaysia, we are quite well-positioned because many of the buildings have been constructed recently. Even though they may not have green features, we see that the landlords of these buildings can implement green transformations.

“Starting this year, we have seen more landlords undertaking customer initiatives in green practices, and next year will probably be significant for these developments. I believe that in the coming years, we will see considerable progress,” she added.

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