Why Malaysia is South East Asia’s Premier Destination for Airbnb Businesses

Malaysia has quietly emerged as one of the most attractive destinations in South East Asia (SEA) for Airbnb business, thanks to a compelling mix of tourism appeal, affordability, a tolerant regulatory climate, and an abundant supply of condominiums that has made it easier for hosts to enter the market. Unlike some SEA countries with strict short-term rental laws, Malaysia currently has no major nationwide regulations restricting Airbnb operations, creating a more permissive environment for entrepreneurs. As millions of domestic and international tourists continue to visit each year, Airbnb hosts are finding ample opportunities to build sustainable and profitable short-term rental ventures.

So, what makes Malaysia stand out from other popular Airbnb destinations in SEA? Let’s delve into the reasons Malaysia stands out as a top choice for homestay operators.

 

• Robust tourism growth fuels demand

In 2024, Malaysia welcomed over 25 million international tourists, marking a 24.2% increase from the previous year (Source: Tourism Malaysia). By 2025, this figure is projected to surpass 22 million, driven by the country’s appeal and the growing demand for diverse accommodation options, including Airbnb listings.

(Source: https://data.tourism.gov.my)

 

• Why this matters for Airbnb hosts

Unlike traditional hotels, short-term rentals cater to modern travellers seeking authentic, local experiences. Malaysia’s unique blend of cultural heritage, natural beauty, and urban convenience makes it a magnet for tourists who prefer homestays over impersonal hotel rooms. Additionally, domestic tourism remains strong, with Malaysians taking over 220 million trips annually (Source: DOSM), ensuring steady demand even during off-peak seasons.

 

• High occupancy rates & strong ROI outperform regional competitors

According to AirDNA (2024), the average occupancy rate for Airbnb listings in Malaysia stands at 68%, with prime destinations like Kuala Lumpur, Penang, and Langkawi achieving 70 – 80% during peak travel periods.

• How Malaysia stacks up against other Asian markets

 

City	Avg. Daily Rate	Occupancy Rate	Annual Revenue
Kuala Lumpur	RM 250	72%	RM 65,700
Penang	RM 300	78%	RM 85,320
Langkawi	RM 350	68%	RM 86,870
Bangkok	RM 200	65%	RM 47,450
Bali	RM 400	62%	RM 90,480

While Bali commands higher nightly rates, Malaysia’s stronger occupancy levels and lower startup costs make it a more sustainable and profitable market for Airbnb hosts.

 

• Lucrative returns for Airbnb hosts

Data from Airbtics highlights the profitability of Airbnb ventures in various Malaysian cities:

• George Town: Hosts earned an average annual revenue of MYR57,000, with a median occupancy rate of 61% and an average daily rate (ADR) of MYR251. 
• Kuala Lumpur: Hosts reported an average annual income of MYR45,000, with a 58% occupancy rate and an ADR of MYR218. 
• Petaling Jaya: Average host earnings stood at MYR32,000 annually, with a 51% occupancy rate and an ADR of MYR171.

These figures demonstrate the substantial income potential for Airbnb hosts across Malaysia’s key cities.

 

• Lower barriers to entry

Compared to other major Asian hubs like Singapore, Hong Kong, or even Bangkok, Malaysia’s real estate market remains highly accessible for investors:

City	Avg. Property Price (RM/sqft)
Kuala Lumpur	RM 800 – RM 1,200
Penang	RM 700 – RM 1,000
Johor Bahru	RM 500 – RM 800
Bangkok	RM 1,200 – RM 1,800
Singapore	RM 4,000+

(Source: PropertyGuru)

This affordability allows new hosts to enter the market with minimal capital, while experienced investors can expand their portfolios without the exorbitant costs seen in other countries.

 

• Diverse traveller demographics = Year-round bookings

Malaysia’s appeal extends across multiple traveller segments, ensuring consistent demand regardless of season:

• Digital nomads – Kuala Lumpur and Penang rank among South East Asia’s top remote work hubs, attracting professionals seeking monthly rentals.
• Family vacationers – Destinations like Langkawi and Genting Highlands are popular for family getaways, driving demand for larger properties.
• Budget backpackers – Cities like Melaka and Ipoh offer affordable stays, ideal for private rooms and shared spaces.
• Luxury seekers – High-end villas in Langkawi and penthouses/serviced apartments in KL cater to upscale travellers willing to pay premium rates.

According to a survey by Airbnb, here are some trending Airbnb Searches in Malaysia (2025):

“Pet-friendly Airbnb Malaysia” (+45% YoY)

“Luxury villa with private pool” (+30% YoY)

“Monthly rental discount Airbnb” (+50% YoY)

This diversity means hosts can tailor their listings to specific niches, optimising occupancy and revenue.

 

Final verdict: Malaysia is South East Asia’s premier Airbnb investment destination

In summary, Malaysia offers an unparalleled blend of tourism growth, financial returns, and lifestyle diversity that make it the best place in SEA to start and grow an Airbnb business. 

As regulation is often a hurdle in the short-term rental industry, Malaysia offers a comparatively lenient landscape. In major cities such as Kuala Lumpur, Langkawi, and Petaling Jaya, local authorities have taken a generally relaxed approach to regulating short-term rentals. This regulatory friendliness makes it easier for hosts to start their Airbnb ventures without the heavy red tape seen in some other Asian markets. While certain strata properties may have internal policies, the broader legal environment remains favourable.

For those ready to take the plunge into the homestay industry, want to generate additional income, or aim for a full-scale rental business, there’s no better time—and no better place—than Malaysia.

 

One-on-one consultation for your Airbnb business

Want to fast-track your success in Malaysia’s Airbnb market? Scan the QR code below or search for MyRehat on Eventbrite to discover our free events, including monthly learning sessions designed for Airbnb hosts. You can also schedule a consultation with us to explore your pain points and opportunities in property management.

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