REAL estate firm Zerin Properties' chief executive officer Previndran Singhe said almost 30 per cent of high-end condominiums in the vicinity of the KLCC have been sold to foreigners, largely made up of Arabs.

"The Arabs have come in strongly with the presence of the three Arab-Islamic banks in Malaysia that update their clients back home on what's happening in the real estate market," he said.

He said besides Indians, Arabs, South Koreans and Singaporeans, investors from Hong Kong, Europe and Japan have also started to buy properties in Malaysia.

"They are buying properties to live in and for investments, and usually taking more than one unit. Some actually pay for their purchases in cash. We are an attractive proposition in terms of value per dollar spent and this is attractive to them," Previndran told Business Times.

Investors were also attracted to Malaysia's investment incentives, real estate law that is transparent, and robust economy.

Previndran foresees the buying of properties here by foreigners to continue for another 10 years.

He said they are keen to invest in high-end condominiums, bungalows, shop offices, and office buildings, malls, hotels and warehouses that have good tenants.

He added that the Klang Valley has been the main pull, followed by Penang and Johor. Sabah is also becoming a hotbed for foreigners, especially for resort homes.

"Foreigners are attracted to developments at the KLCC. Owning a piece of prime condominium near there has become a dream for many," he said.

A few thousand condominium and serviced apartment units have been launched near the KLCC in recent years, some as high as over RM1 million each. There are penthouse units, which cost more than RM10 million and sold like hot cakes.

"I think the niche products for units priced above RM2 million are going to increase in price and Malaysians will have to compete with international buyers as well," Previndran said.

Condominium projects within the KLCC area include Avenue K Residence, The Avare, The Binjai, Dua Residency, Suria Stonor, The Marc, The Meritz, 2 Hampshire, Park Seven, Binjai Residency, myHabitat, Lot 163, Idaman Residences, Four Seasons Residences, The Oval and The Troika.