Buying real estate in Penang?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

12 hottest real estate areas in Penang in 2025

Last updated on 

Authored by the expert who managed and guided the team behind the Malaysia Property Pack

buying property foreigner Malaysia

Everything you need to know before buying real estate is included in our Malaysia Property Pack

Where are the best places to invest in Penang right now? Is George Town still the top pick, or are areas like Batu Ferringhi, Tanjung Bungah, and Bayan Lepas gaining ground? What makes these locations attractive to both local and foreign investors?

We’re often asked these questions because we work directly with property developers, real estate agents, and clients who invest across the island. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.

Our goal is to highlight the hottest markets in Penang and explain why they’re worth your attention in 2025.

If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.

How this content was created 🔎📝

At BambooRoutes, we study the Penang real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

We built our first area analyses on the insights from these conversations and our observations. But it was not enough. To strengthen our findings, we also consulted well-established sources like Penang Property Talk, EdgeProp.my, and The Star (just to name a few).

We only include the best areas to buy or the hottest real estate markets backed by credible sources, solid context, and clear data.

If we can’t find enough supporting information or context, we leave it out. There’s no point in recommending areas based on vague opinions or unverified trends. Our goal is to provide you with a reliable and well-researched guide to the most promising real estate markets—not just a random list of places.

Every source and citation is clearly listed because we believe in transparency and want to give you the tools to explore further if needed (and you should!).

We also use a bit of AI during the writing process to ensure our explanations are clear, accurate, and free of grammar or syntax mistakes. This way, you get content that’s both professional and easy to read.

When reading this content, you'll see that our team designed custom infographics to summarize and visualize key trends, making it clear why these markets stand out. We hope you’ll find them helpful! All other visuals were crafted in-house to ensure quality and clarity.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Air Itam is gaining interest for its strategic location near Penang Hill and affordable property prices

Air Itam is gaining popularity thanks to its strategic location near Penang Hill.

Living close to Penang Hill means you’re just a stone’s throw away from one of the most beloved natural attractions in the area. This makes Air Itam not just a place to live, but a lifestyle choice for those who love nature and the outdoors. Imagine waking up to the lush greenery and cool breezes that Penang Hill offers, a daily escape from the hustle and bustle.

Another big draw is the affordable property prices in Air Itam. With a median sale price of RM 360,000, it’s a bargain compared to other parts of Penang. This affordability doesn’t mean you’re compromising on value; in fact, the price per square foot here is lower than the state average, making it a smart choice for savvy buyers.

What’s more, the area is buzzing with activity. There’s been a noticeable uptick in property transactions, signaling a growing demand. In 2023, the residential property market in Air Itam saw a significant increase in transactions, a trend that’s catching the eye of real estate agencies. This surge in interest suggests that more people are recognizing the potential of this area.

For those considering a move, Air Itam offers a unique blend of nature, affordability, and growth. It’s not just about buying a property; it’s about investing in a community that’s on the rise. With its strategic location and competitive pricing, Air Itam is poised to become a hotspot for both locals and newcomers.

As the area continues to develop, it’s expected that the demand will only grow. This ongoing interest is a testament to Air Itam’s appeal, making it a wise choice for anyone looking to invest in property in Penang.

Sources: The Edge Malaysia Weekly, EdgeProp.my, EdgeProp.my

2) Batu Maung is booming with industrial and residential growth due to its proximity to Penang International Airport

Batu Maung is booming thanks to its prime spot near Penang International Airport.

Businesses, especially in logistics and distribution, are flocking to Batu Maung. They love the easy access to international markets that the nearby airport provides. This area is becoming a hub for companies looking to expand their reach.

The airport itself is on the rise, with a 5% jump in international passenger movements in March 2024. New routes from airlines like Fly Dubai and Thai Lion Air are making Batu Maung even more connected and attractive for investors.

The government is also stepping up, pouring money into infrastructure projects. A planned light rail transit will soon link Batu Maung with other parts of Penang, boosting property values and making it easier for people to live and work there.

With these developments, Batu Maung is not just a place to pass through; it's becoming a destination. The increased connectivity and infrastructure are turning it into a sought-after spot for both businesses and residents.

As the area grows, expect more businesses to set up shop and more people to call Batu Maung home. The proximity to the airport is a game-changer, making it a hot spot for growth.

Sources: The Star, Routes Online

statistics infographics real estate market Penang

We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

3) Gurney Drive is in demand for its luxury sea-view condos, attracting expatriates and affluent locals

Gurney Drive is a hotspot for luxury condos with stunning sea views, drawing in both expatriates and wealthy locals.

In 2024, property prices in Gurney Drive saw a notable increase, rising by 7% to 10% from the previous year. This surge highlights the steady demand from both local and international buyers. The area is particularly appealing due to its high property appreciation rates, making it a smart investment choice.

Luxury condos in Gurney Drive boast high occupancy rates, underscoring their popularity. In early 2023, condos and apartments dominated residential property transactions in Penang, with many of these deals happening in Gurney Drive. This trend clearly shows the strong interest in this prime location.

Real estate listings frequently feature premium prices for sea-view properties in Gurney Drive. Projects like Lucerne Residences and Queens Residences @ Queens Waterfront are in high demand, with prices ranging from RM730,000 to RM2 million for units with sea views. This pricing reflects the area's desirability and exclusivity.

Gurney Drive is a magnet for expatriates, contributing to the high demand for luxury condos. The area attracts not just local buyers but also investors from abroad. Real estate agents report a significant number of inquiries from affluent buyers in Taiwan, Singapore, and Hong Kong, highlighting the international appeal of Gurney Drive.

Media articles and testimonials from residents emphasize the allure of living in Gurney Drive. The area offers a unique blend of luxury living, breathtaking sea views, and easy access to amenities like shopping malls and restaurants, making it a top choice for a high-end lifestyle.

Gurney Drive is also seeing a boom in luxury developments, such as the Gurney Bay project, which features a public recreational park with a man-made beach and water gardens. This development not only attracts locals but also tourists, further boosting the area's charm.

Sources: The Edge Malaysia, Future Southeast Asia, Penang Property Talk

4) Sungai Ara is gaining attention for its family-friendly vibe and new residential projects

Sungai Ara is quickly becoming a top choice for families due to its welcoming environment and new housing projects.

In recent years, the area has seen a surge in new residential developments like Dahlia @ Botanica.CT and Juru Hills, which cater to families looking for affordable homes. These projects are designed with family needs in mind, making Sungai Ara an attractive option for those seeking a balanced lifestyle.

The property market here is buzzing, with a noticeable increase in transaction volumes. The Northern Region Property Market Report 2023 highlights a 4.3% rise in residential property transactions in Penang, with Sungai Ara playing a key role in this growth. This uptick shows that more families are eyeing the area for its appealing housing options.

Young families are flocking to Sungai Ara, drawn by the demand for spacious homes. The Vodus Malaysia Housing Demand Report 2024 notes that Penang, including Sungai Ara, is a hotspot for first-time buyers and young professionals. This shift is evident in the growing enrollment numbers in local schools, underscoring the area's appeal to families who value good education.

With its family-friendly vibe and new developments, Sungai Ara is becoming a magnet for young families. The community is thriving, and the demand for homes continues to rise, making it a promising spot for potential buyers.

As more families move in, the area is evolving, offering a blend of modern living and community spirit. Sungai Ara is not just a place to live; it's a place to grow and thrive.

Sources: Northern Region Property Market Report 2023, Vodus Malaysia Housing Demand Report 2024

5) Teluk Kumbar is gaining interest with new infrastructure projects improving connectivity and accessibility

Teluk Kumbar is quickly emerging as a promising market due to new infrastructure projects enhancing connectivity and accessibility.

One major development is the Penang South Islands project, which is set to create new islands featuring residential, commercial, and industrial spaces. This ambitious project includes a light rail transit (LRT) system that will link Georgetown to the airport and extend to these new islands, making Teluk Kumbar much more accessible. Imagine hopping on a train in Georgetown and reaching Teluk Kumbar with ease—this is the kind of convenience that’s on the horizon.

In addition, a flyover at Jalan Sultan Azlan Shah is under construction, aimed at improving road connectivity in the area. This is part of a larger initiative to boost infrastructure across Penang, which will make traveling to and from Teluk Kumbar significantly easier. Public transportation is also getting a facelift, with plans for a consolidated bus station at Weld Quay, further enhancing accessibility.

On the local front, the Penang Island City Council is building a new market complex in Teluk Kumbar. This facility will cater to the daily needs of residents and is expected to stimulate the local economy. With property prices rising in nearby areas, there’s a clear sign of growing interest and demand in Teluk Kumbar.

The government's backing of these infrastructure projects is a strong signal of support, making the area even more attractive to both investors and potential residents. The combination of improved transport links and local amenities is setting the stage for Teluk Kumbar to become a sought-after location.

As these projects unfold, Teluk Kumbar is poised to transform into a vibrant community with enhanced connectivity and a thriving local economy, making it a compelling option for property buyers looking for growth potential.

Sources: Malay Mail, Future Southeast Asia, Buletin Mutiara

Get to know the market before you buy a property in Penang

Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.

real estate market Penang

6) Jelutong is gaining interest for its blend of modern apartments and traditional homes, attracting young professionals

Jelutong is becoming a hotspot for young professionals thanks to its mix of modern apartments and traditional homes.

In recent years, property prices in Jelutong have been on the rise, showing that more people are eager to call this place home. This trend is evident from 2020 to 2021, when prices per square foot saw a noticeable jump, highlighting the area's growing appeal.

One major draw is the development of new apartment complexes. An exciting project on the horizon includes two skyscrapers with 1,245 units, each packed with modern amenities like swimming pools and fitness rooms. These features are a big hit with young professionals seeking affordable yet stylish living spaces.

Jelutong is also buzzing with new amenities and lifestyle facilities. Cafes and co-working spaces are popping up, catering to the needs of the young and dynamic crowd. This makes the area not just a place to live, but a vibrant community to be part of.

The location is another plus. With improved public transportation links, Jelutong offers easy commuting and access to city life, making it a convenient choice for those who work in the city but prefer a quieter home base.

All these factors combined make Jelutong a rising star in the property market, offering a unique blend of modernity and tradition that appeals to the younger generation.

Sources: Land Plus, Penang Property Talk

7) Tanjung Tokong is booming with rapid property appreciation due to its closeness to upscale shopping centers and international schools

Tanjung Tokong's property market is booming thanks to its proximity to upscale shopping centers and international schools.

In recent years, especially in 2023 and 2024, property transactions and values have surged in Tanjung Tokong. This area is a magnet for both locals and expatriates who love the convenience and lifestyle offered by nearby amenities.

One major draw is its closeness to popular shopping centers like Gurney Plaza and Straits Quay. These spots offer a variety of shopping, dining, and entertainment options, making Tanjung Tokong a hot spot for those who enjoy a vibrant lifestyle. The presence of these amenities boosts property values and enhances residents' quality of life.

Moreover, Tanjung Tokong hosts several prestigious international schools, such as Dalat International School and Tenby Schools Penang. These schools are a big pull for expatriate families who prioritize quality education for their kids. This demand from families fuels property appreciation in the area.

Real estate agencies have marked Tanjung Tokong as a property hotspot. Luxury condominiums and residential projects like The Latitude and The Peak Residences are in high demand. These developments offer modern facilities and are strategically located near essential services, further driving up property demand and prices.

Sources: Penang Property Talk, Trusted Malaysia, Newsfile

8) Balik Pulau is attracting interest for its peaceful setting and agricultural land investment potential

Balik Pulau is becoming a hot spot for those seeking a peaceful environment and promising agricultural investments.

Since 2023, there's been a noticeable uptick in agricultural land transactions here. This is largely due to the demand for high-quality produce like nutmegs and durians, which thrive in Balik Pulau's fertile soil.

The government is also playing a big role by supporting agricultural development. They've rolled out policies that promote sustainable farming and encourage investment, making Balik Pulau an attractive option for those looking to invest in agriculture.

Community-supported agriculture (CSA) initiatives are gaining traction, showing a strong commitment to sustainable practices. This not only fosters a sense of community but also makes the area more appealing to both residents and investors.

Balik Pulau's natural beauty and tranquility have caught the media's eye, boosting its reputation as a serene getaway. The rise in eco-tourism and agro-tourism is drawing more visitors, eager to explore its lush durian orchards and nutmeg farms.

Tourists are flocking to Balik Pulau, not just for its produce but also for its peaceful retreat, adding to its charm and popularity.

Sources: Balik Pulau - Wikipedia, CASE STUDY of DURIAN AGRITOURISM in BALIK PULAU, PENANG

infographics comparison property prices Penang

We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

9) Gelugor is attracting interest with affordable housing and strong capital growth potential as infrastructure improves

Gelugor is catching eyes for its affordable housing options, especially with projects like Ideal Residency.

By 2023, 97.5% of Ideal Residency's 1,218 units were sold, showing just how much buyers are interested. This project is set to wrap up by early 2025, which only adds to Gelugor's charm.

What's also boosting Gelugor's appeal is the ongoing infrastructure improvements in Penang. While there aren't specific details about new roads or public transport in Gelugor, the overall better connectivity, including links to Singapore, makes it a hot spot for residents and investors alike.

Gelugor is also home to schools and universities, like the University of Science, Malaysia (USM), which draws in younger families and professionals. This shift in demographics is a good sign for capital growth as more people move in, driving up housing demand.

As infrastructure continues to improve, Gelugor's potential for strong capital growth becomes even more promising. The area's development is not just about housing; it's about creating a community that appeals to a diverse group of people.

With these factors in play, Gelugor is becoming a place where affordability meets opportunity, making it a smart choice for those looking to invest in property.

Sources: Penang Property Talk, PropSocial

10) Bayan Lepas is gaining interest for its booming tech industry and rising demand for residential properties

Bayan Lepas is buzzing with investor interest due to its booming tech scene.

Big names like Intel, Motorola, Dell, and Hewlett Packard have set up shop here, drawn by tax perks, affordable labor, and a skilled workforce. This influx has created a wave of job opportunities, pulling in professionals from all over and driving up the need for homes.

The government is all in, pushing the tech industry with initiatives like the Bayan Lepas Free Industrial Zone. Plus, the expansion of Penang International Airport has made the area more accessible, which is a big win for tech pros and investors looking for a place to settle.

New housing projects are popping up, aimed squarely at tech workers, and existing properties are seeing high occupancy rates. Real estate agents are noticing a spike in interest, especially from tech professionals and investors, which speaks volumes about the area's growing appeal.

With the tech industry thriving, Bayan Lepas is becoming a hotspot for those looking to invest in property. The combination of job opportunities, improved infrastructure, and targeted residential developments is making it a prime location for both living and investing.

Sources: Vebro Polymers, Airport IR, Penang Property Talk

11) Batu Ferringhi is booming with high rental yields from tourists seeking beachfront stays

Batu Ferringhi is a hot market thanks to its high rental yields fueled by tourists flocking to its beachfront accommodations.

In recent years, Airbnb listings in Batu Ferringhi have surged, showing a strong demand for short-term rentals. This uptick in vacation rentals suggests that occupancy rates are consistently high. The steady stream of tourists to Penang, with Batu Ferringhi as a key attraction, has significantly boosted the demand for rental properties.

Compared to other areas in Penang, rental yields in Batu Ferringhi stand out. For example, a 2-bedroom property here can fetch a rental yield of about 3.33%, which is quite impressive. Surveys indicate that tourists are drawn to Batu Ferringhi for its beachfront location and diverse activities, further driving up rental yields.

Sources: A Winter Escape, EdgeProp, A Winter Escape

Buying real estate in Penang can be risky

An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.

investing in real estate foreigner Penang

12) Pulau Tikus is gaining interest for its mix of heritage and modern living, appealing to investors and homebuyers

Pulau Tikus is a top choice for investors and homebuyers, thanks to its blend of heritage and modern living.

In recent years, property values have surged in this area, largely due to luxury developments like Codrington Residence and The Anton. These upscale projects offer easy access to amenities and attractions, making them highly attractive to high-end buyers. The neighborhoods are not just about luxury; they are about a lifestyle that combines convenience with elegance.

There's also a growing interest in heritage properties, attracting both local and foreign buyers, including expatriates and young professionals. The state government is actively preserving the area's cultural heritage while promoting urban development. This ensures that Pulau Tikus retains its unique charm while meeting the demands of modern living.

Modern residential projects are popping up alongside heritage sites, offering a luxurious yet serene living experience. These developments are strategically located near shopping malls, entertainment venues, parks, and cultural landmarks, which enhances the area's appeal. Residents love the vibrant community and local attractions, which is evident in the high occupancy rates.

Living in Pulau Tikus means being part of a community that values both its past and its future. The area is known for its vibrant community life, with residents enjoying a mix of cultural and modern amenities. This balance is what makes Pulau Tikus a sought-after location for those looking to invest or settle down.

Whether you're drawn to the luxury condos or the charming heritage homes, Pulau Tikus offers a unique living experience that combines the best of both worlds. It's a place where modernity meets tradition, creating a dynamic environment for all its residents.

Sources: Penang Property Talk, Penang Property Talk, Pavilius Homes

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.