New research suggests that the number of Malaysian property buyers that are coming from the Middle East is increasing as investors look for safe havens during the political turmoil in the region.

Economic uncertainty and the availability of Islamic finance is driving Middle Eastern real estate investors to look East to markets such as Malaysia, it is claimed by IP Global, which reports that investment into Malaysian real estate projects increased by 11.4% in the third quarter of 2011 compared with the same period in 2010.

Malaysian property prices have risen by 5.3% year on year and Kuala Lumpur is the country’s fastest rising market with growth of 11.4% year on year, according to IP Global.

According to the research there has been a significant rise in property investors coming from the UAE, perhaps looking for alternative markets now that Dubai property is oversupplied, but also possible concerned about a similar uprising in the UAE to that which has occurred in many nearby countries.

Tim Murphy, IP Global’s founder and managing director, reportedly said: “Malaysia is a sensible market and tends to perform more steadily than the rest of Asia. The property market is well regulated, such that speculators cannot buy and sell quickly so it doesn’t tend to create a boom and bust scenario.”