If 2015 has shown us anything, it is just how resilient Malaysia has been despite everything that was thrown at it — declining prices for energy and commodities, a political fiasco, and the falling Ringgit which became one of the worst performing currencies across Asia. While we should expect some squalls in 2016, we don’t see evidence of a storm on the horizon.

Indeed, we believe that over the next couple of years or so, the current macro-environment offers real estate investors an attractive window of opportunity to increase exposure to Malaysia. It is now possible to buy world-class standard real estate in prime locations offering net yields of 6 per cent.

For overseas investors, the Ringgit has fallen 25 per cent against the dollar compared to 12 months ago and is widely thought to be undervalued.

Malaysia has long been a popular investment destination for Middle Eastern investors, who are attracted by the more stable real estate performance relative to other Asian destinations. The fact that it offers freehold ownership is also another differentiator compared to many other Asian markets. Islamic-compliant real estate investing is well-established and relatively straight forward. Investors can fully leverage the comprehensive Islamic financial infrastructure and this is a further reason why Middle Eastern investors are attracted to this market.

Integrated schemes where people want to live, work, eat and shop are in demand and rare in Malaysia. Mid-Valley City, a 20-minute drive from the heart of the city, is a good example of a development that continues to be in strong demand, despite rising competition. Attracting 34 million visitors a year, it consists of two mega shopping malls, three hotels, residential apartments and several office towers where occupancy is consistently high and rental rates that outperform other buildings in the area.

Another example is KL Eco City, a 25-acre mixed-use development project underway from the SP Setia Berhad Group. It includes three luxury residential towers, which are fully sold, a mall and offices. More than 60 per cent of the entire development is dedicated to offices, of which 90 per cent has been sold.

Increasingly, a number of these new developments are built to a very high standard. They are typically Construction Quality Assessment System compliant and fast adopting the Green Building Index (GBI) certification.

In contrast to these well-designed projects, there are plenty of outdated, poorly managed older buildings in Malaysia. Indeed, close to 75 per cent of Kuala Lumpur’s office stock is more than 15 years old and less than 15 per cent is less than five years old.

Older buildings will find it challenging as occupiers upgrade their space. Accessibility and connections to public transport as well as adequate parking are also vital. The outdated office stock present a number of redevelopment opportunities and have attracted overseas investors to enter the Malaysian market.

The Canada Pension Plan Investment Board (CPPIB) made its first direct real estate investment in Malaysia in 2015 by forming a joint venture with Malaysia-based property developer Pavilion Group, investing $118.6 million. The two are investing in a mixed-use development (Pavilion Damansara Heights) in Kuala Lumpur.

We cannot say with certainty how 2016 will turn out. But for medium- to long-term investors, especially those from overseas who can benefit from the undervalued currency, we believe there is an attractive window of opportunity to enter the market.

Malaysia’s economic performance has remained steady despite the headwinds of 2015. It is expected to grow by 4.7 per cent in 2015 (down from 6 per cent in 2014) and 4.9 per cent in 2016. Indeed, Malaysia’s economy has consistently demonstrated its resilience over the years. After the 1997 Asian financial crisis, it continued to post solid growth rates of 5.5 per cent per annum from 2000 to 2008.

Although its economy was affected by the Global Financial Crisis in 2009, it rebounded quickly, posting growth rates averaging 5.7 per cent since 2010.

Non-residents are free to purchase residential and commercial properties in Malaysia although purchasers are subject to restrictions on Malay Reserve Lands and properties allocated for Bumiputras. There is a minimum investment value for property purchases which does vary across the country, ranging from RM1 million to RM2 million.

The tax environment is investor friendly. From January 1, 2010, the effective tax rate on disposal of real property is 5 per cent, subject to the provisions of the Real Property Gains Tax Act 1976. No tax is imposed on profits gained if the property is disposed of after five years of ownership, acquired by an individual. There is no withholding tax on property disposal.

Bank Negara Malaysia does not impose any restriction on the repatriation of profits, rental or proceeds from divestment of investments in Malaysia by a non-resident.

The writer is Executive Director, Capital Markets, Knight Frank Malaysia.