This article first appeared in City & Country, The Edge Malaysia Weekly on November 3, 2025 - November 9, 2025

Langkawi’s property market, particularly the hospitality and holiday home segment, has seen an uptick in recent times.

“Langkawi has always been a tourism-led property market — that’s its DNA,” says Zerin Properties Group founder and group CEO Previndran Singhe. “But what we’re seeing now is a sharpened investor focus on hospitality-aligned real estate, such as hotels, serviced apartments and mixed-use lifestyle assets in prime beachfront zones.”

Knight Frank Malaysia (Penang branch) senior executive director Mark Saw concurs, adding, “Pantai Cenang is the most active property location in Langkawi, with the tourism-driven residential and hospitality sectors dominating the market. The area stands out for several compelling reasons — highest tourist footfall, strong short-term rental returns, high density of commercial activity and a development hotspot (because of Tropicana Cenang).”

Tropicana Corp Bhd’s (KL:TROP) high-rise project Tropicana Cenang is among the new and upcoming properties on Pantai Cenang. This project, which will have three serviced suite towers, is the first development along Pantai Cenang in a while and offers investors and homeowners a prime seafront location.

One of the newest hotels on Pantai Cenang is the Parkroyal Langkawi Resort. It opened in February 2023 with 300 guest rooms plus seven villas. 

Other properties in the pipeline include The Nautilus Resort, Curio Collection by Hilton, located next to Tropicana Cenang. According to Previndran’s research, the hotel was scheduled to be completed by 2023, however, was delayed due to the termination of the main contractor’s contract in 2024. However, in a September 2025 press release, Hilton continued to list the hotel as one of its upcoming hotels in Langkawi. However, its timeline status is unclear, he says.

Older properties, especially in Kuah, Langkawi’s capital, are seeing slowing demand due to ageing infrastructure, limited refurbishment and rising tourist expectations, Previndran notes.

“Duty-free retail, once a major draw, is struggling with perception — high prices, outdated stock and lack of experience-driven offerings are turning off repeat visitors. Large-scale, concept-driven projects without clear execution like the Langkasuka reclamation have stalled or been cancelled, highlighting the risks of over-ambition without strong delivery mechanisms,” he adds.

The Langkasuka reclamation project by Bin Zayed International LLC, a subsidiary of Dubai-based conglomerate BZI Group, was a RM40 billion 99-island project. The company officially withdrew its interest in 2024, citing limited growth prospects.

Saw highlights that visitors to Langkawi prefer Pantai Cenang’s more vibrant atmosphere including its modern beachfront retail options like Cenang Mall, compared to the dated shops in Kuah. Furthermore, e-commerce has reduced demand for traditional retail space, leaving some shops in Kuah empty.

To reverse this trend, Previndran says, “The state government and Lembaga Pembangunan Langkawi (Lada) are shifting focus toward placemaking and experience-orientated upgrades such as the Kuah waterfront rejuvenation and promoting marine, heritage and wellness tourism to expand Langkawi’s appeal.

“There’s a growing realisation that Langkawi’s next phase can’t just be about adding rooms. It’s about curating better experiences, ensuring sustainability and revitalising underutilised zones to deliver stronger returns and community value.”

Saw explains that Kuah is being repositioned through a comprehensive urban renewal initiative under the Langkawi Local Plan 2040.

“This includes beautification efforts, enhanced streetscapes and transit-oriented improvements such as upgrades to the bus terminal. The plan also emphasises cultural and heritage branding to revitalise Kuah’s identity, with the overarching goal of making the town more liveable for residents, and more walkable and attractive for tourists,” he says.

Saw highlights that the Greater Kedah 2050 Plan, which proposes Langkawi be turned into a green tourism hub, retirement destination, and wellness and eco-living capital, is among the ways the local authorities are trying to diversify economic activities.

Lada is also taking the lead to deal with unregulated short-term rentals by working with local councils to register them, and create and encourage professional management for vacation rentals.

Along with the Kedah government, Lada is also looking into growing foreign investment by promoting investor education, having clearer foreign buying procedures and a smoother Malaysia My Second Home (MM2H) reapplication process.

Meanwhile, Previndran highlights that Langkawi has become increasingly aggressive in securing international air links.

In May this year, LOT Polish Airlines started a new Warsaw-Langkawi charter route, with a second round of charters planned. Over the past year, Flydubai, IndiGO (Chennai) and Uzbekistan Airways (Tashkent) have all launched direct services to Langkawi. There are charter flights from Chengdu, China, that bring over 2,000 tourists monthly.

Moreover, visa-free access for Chinese and Indian travellers have boosted arrivals, with Indian visitor numbers rising 70% year on year to late 2024.

Previndran believes there will be greater traction if the authorities work with airlines to create tourism bundles in their original markets, and with tourism boards and tour operators to craft curated Langkawi packages aligned with school breaks, festivals or honeymoon seasons.

“Focus not just on charter arrivals but also on sustained repeat visitations by enhancing the on-ground visitor experience and offering perks like duty-free upgrades, returnee discounts or loyalty partnerships with airlines,” he says.

Previndran highlights how Prime Minister Datuk Seri Anwar Ibrahim is pushing for a focus on Langkawi’s local legends, heritage sites and storytelling assets such as Mahsuri’s Tomb, Makam Purba and Pulau Dayang Bunting.

In 2023, Langkawi Geopark was revalidated as a Unesco Global Geopark and, through Langkawi Invest Day, Lada has outlined plans for eco-tourism, health tourism, aquaculture and green tech. In addition, there is the MasPlan Lada 2030, which aims to align all future developments with nature-based and heritage-sensitive guidelines.

“These are the right steps toward positioning Langkawi as a premium sustainable destination but [Langkawi] would benefit from stricter eco-certification for new developments, green building codes and Green Building Index-linked incentives for resorts,” says Previndran.

According to the Lada website, Langkawi Invest Day is a programme to promote new investment opportunities, especially in the tourism service sector, that are yet to be explored while MasPlan Lada 2030 was created to provide comprehensive guidance to investors interested in doing business in Langkawi.

Previndran points out some infrastructure upgrades in the pipeline such as the RM21 million upgrade of the Eagle Square (Dataran Lang) and the RM2.5 million revitalisation of Pantai Kok R&R Centre by Tropicana Corp.

“Langkawi is also being primed as a 5G-enabled tourism island, following Edotco and DNB’s (Digital Nasional Bhd) announcement in March 2025 to roll out full island-wide coverage.”

According to the press statement on the tie-up, Edotco and DNB will work with Lada to provide high-speed connectivity at key tourism hotspots, including Langkawi Sky Bridge, Geosites, Pantai Cenang and major hotels. This will enable seamless digital experiences, such as real-time high-definition streaming of attractions and events, artificial intelligence-powered concierge services and interactive augmented reality tourism guides.

Established in 2012, Edotco Group is a digital connectivity infrastructure services company that provides end-to-end integrated solutions in the tower services sector. It has over 58,000 towers in nine countries.

DNB was established in 2021 to accelerate the deployment of 5G infrastructure and network in Malaysia, in order to spur economic activity, promote service-based competition within the communications industry and bridge the urban-rural digital divide.

There are several ongoing projects in Langkawi. Both consultants point to Tropicana Cenang by Tropicana Corp, which offers freehold serviced suites in three blocks — the 831-unit Assana, 60-unit Merissa and 806-unit Clarissa that were launched in September 2021, June 2023 and April 2025 respectively.

According to Zerin’s data, the units at Assana, which have a built-up of 380 to 1,310 sq ft, were launched at prices starting from RM500,000. Merissa’s launch price started at RM1.71 million for the larger units of 1,066 to 1,302 sq ft. Meanwhile, Clarissa’s starting launch price was RM668,800 for units between 536 and 1,356 sq ft. The take-up rate as at March 2025 was 97% for Assana and 88% for Merissa, with details for Clarissa yet to be released.

Both consultants also highlight the development of the 270-room Sheraton Resort & Spa Langkawi @ Tropicana Cenang with a gross development value (GDV) of RM352 million. The beachfront development is expected to be completed in 2029 or 2030.

Previndran highlights several other projects happening on the island. There is the 251-room Hilton Burau Bay Resort Langkawi by Tradewinds Corp Bhd, which is expected to be completed this year. There is also the 220-bed expansion of Hospital Sultanah Maliha at Bukit Tekoh, Kuah, with a GDV of RM429 million.

There is the 8-storey serviced apartment called The Cahaya Langkawi Resort at Mukim Padang Matsirat on Pantai Tengah by Pembinaan Mitrajaya Sdn Bhd, which was awarded the construction contact on May 14. The units are not for sales and is developed for Tenaga Nasional Bhd (KL:TENAGA). It will be used as a training centre and staff recreational facilities.

In addition, there is BDB Forest Chalets, which is to be developed by BDB Land Sdn Bhd in partnership with Enfiniti Escapes (M) Sdn Bhd. Located at Darulaman Sanctuary, Lubuk Semilang, the sustainable development will sit on four hectares of land within the Unesco Global Geopark.

Saw draws attention to D’Citrine by Vantage Freeway Sdn Bhd in Kuah. This mixed-use development comprises 48 units of 3-storey townhouses and 66 condominium units in a 15-storey tower. The townhouses have built-ups ranging from 1,249 to 1,722 sq ft, while the condominium units range in size from 1,389 to 4,973 sq ft. Prices for the townhouses are from RM472,800 to RM505,800 while those for the condo units are between RM572,800 and RM1.79 million. The project is scheduled for completion in the first quarter of next year.

According to Saw’s research, residential property transactions on the island showed a recovery after the pandemic due to the revival of tourism and renewed investor confidence. 

“After peaking at 261 units in 2023, activity moderated in 2024 with a 19.2% decline, though the first half of 2025 showed signs of stabilisation with a 5.6% increase year-on-year (y-o-y),” he says.

“Correspondingly, the total value of transactions rose from RM46.9 million in 2020 to RM80.9 million in 2023, reflecting stronger market sentiment and a shift toward mid-range and upper-tier properties, before easing to RM68.8 million in 2024.”

For y-o-y contrast, Saw highlights how in 1H2024 compared to 1H2025, the residential property transaction value rose from RM29.17 million to RM35.85 million. 

As for the average value per transaction, his research shows that from 2020 to 2024, it remained stable between RM310,000 and RM350,000 before rising to RM380,000 in 1H2025, which Saw says, “Suggests firmer pricing, improving buyer confidence and growing interest in higher-value homes supported by Langkawi’s tourism-led recovery.”

Meanwhile, commercial real estate had a more varied performance, which reflects the island’s dependence on tourism and hospitality-related activities.

“Volume of transactions declined from 41 units in 2020 to 26 units in 2021 during the pandemic, before surging to 90 units in 2022 as the reopening of borders reignited investor interest. Activity then eased in 2023 but partially recovered to 58 units in 2024, while 1H2025 recorded 17 transactions, indicating a temporary slowdown amid limited new supply. 

“Correspondingly, the total value of transactions rose sharply from RM43.95 million in 2020 to RM226.57 million in 2022 and further to RM261.48 million in 2024, highlighting several large-scale or hospitality-related deals,” says Saw. 

For y-o-y contrast, he highlights 1H2024 compared with 1H2025, the commercial property transaction value rose from RM19.73 million to RM32.48 million. 

Saw also points to how the average value per transaction rose from RM1.07 million in 2020 to RM4.51 million in 2024. For y-o-y contrast, in 1H2024 the average value per transaction was RM620,000 compared with 1H2025’s RM1.91 million, which according to Saw, “underscores firmer pricing and renewed interest in higher-value commercial assets as tourism and retail activity continue to strengthen.”

Both consultants believe Langkawi’s property market will continue to grow despite the ongoing challenges faced.

“The outlook for Langkawi’s property market is cautiously optimistic, shaped by the island’s evolving tourism dynamics, strategic investments and rising appeal as a lifestyle-driven destination. While growth potential is real, it favours those with a thoughtful, long-term approach,” says Previndran.

He adds that there are some positive growth drivers such as a sustained tourism recovery, government backing and infrastructure plans, rising interest in income-generating lifestyle properties, premium and eco-niche potential and greater property affordability compared with regional peers such as Bali or Phuket.

However, some key factors need to be taken into account.

“The market is not one-size-fits-all. Success hinges on product market fit, especially offerings aligned with Langkawi’s tourism rhythm and seasonal patterns. Cookie-cutter luxury developments may struggle without strong differentiators.

“Efforts are also needed to address perceptions of price inflation, ghost-town pockets and uneven visitor flows. Revitalising secondary commercial areas and diversifying offerings will help ensure balanced, inclusive growth,” says Previndran.

He also highlights the importance of environmental and regulatory sustainability, which hinges on responsible planning, environmental integrity and clear regulatory frameworks, policy and programme stability — such as MM2H which could unlock foreign buyer interest if made more accessible and better communicated — and improving accessibility and connectivity, especially flights, to the island.

According to Saw, “In the short term, Langkawi’s property market is projected to maintain steady growth, supported by increasing tourist arrivals, strong demand for short-term rentals and government-driven tourism campaigns, such as Visit Kedah 2025 and Visit Malaysia 2026.”

“High-performing segments include short-term rental apartments, beachfront villas and branded residences in prime locations, such as Pantai Cenang, Pantai Tengah and Datai Bay, driven by rising tourist arrivals, improved infrastructure and strong interest from both local and foreign investors.”

He also points out that the revitalisation initiatives as well as other projects in Kuah aim to reposition the town as a commercial and cultural hub. 

“Emerging sectors like wellness tourism, eco-resorts and retirement living present new growth frontiers. With continued investment, careful planning and environmental stewardship, Langkawi is well-positioned to develop into a year-round, high-value destination with strong lifestyle and investment appeal.”

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