Table of Contents
- Executive Summary: Why Brunei’s Property Market is Gaining Global Attention
- Key Market Statistics: Residential, Commercial, and Industrial Sectors (2025)
- Government Policies & Economic Drivers: Insights from the Ministry of Development
- Foreign Ownership Rules: Legal Pathways and Latest Taxation Updates
- Major Ongoing & Upcoming Real Estate Projects (Sources: mod.gov.bn, BEDB.gov.bn)
- Housing Affordability, Mortgages, and Lending Environment
- Compliance, Zoning, and Environmental Regulations in Brunei
- Risks: Market Volatility, Legal Pitfalls, and Fraud Prevention
- Future Outlook: Predicted Growth Areas and Shifting Demand (2025–2029)
- Strategic Recommendations for Investors, Developers, and Homebuyers
- Sources & References
Executive Summary: Why Brunei’s Property Market is Gaining Global Attention
Brunei’s real estate market is increasingly drawing global attention in 2025, driven by a confluence of regulatory modernization, strategic investments, and a stable macroeconomic environment. The nation’s property sector, traditionally characterized by conservative growth, is now experiencing renewed interest from both domestic and foreign stakeholders due to ongoing infrastructure development and government-led urban revitalization projects.
Recent legislative updates have played a pivotal role in enhancing transparency and investor confidence. The Attorney General’s Chambers of Brunei Darussalam oversees the Land Code (Cap. 40) and related real property laws, which have seen incremental reforms to streamline land acquisition processes, clarify foreign ownership regulations, and strengthen due diligence requirements. Compliance with the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) guidelines—supervised by the Brunei Darussalam Central Bank (BDCB)—is now strictly enforced, especially for property transactions, reducing risks and aligning Brunei with international best practices.
Statistically, Brunei’s property market demonstrates resilience and cautious growth. According to the latest data published by the Department of Economic Planning and Statistics, transaction volumes in residential and commercial segments showed a steady upward trend through late 2024 and into 2025, with housing supply modestly outpacing demand in urban centers, particularly Bandar Seri Begawan. The average price index for residential properties remained stable, reflecting consistent demand among locals and expatriates. Notably, the government’s Vision 2035 initiative continues to prioritize affordable housing and sustainable urban development, ensuring that new supply meets evolving demographic needs.
- Events: Launch of new mixed-use developments and government-backed housing schemes are transforming the urban landscape and attracting regional investors.
- Law & Compliance: Ongoing regulatory reforms enhance legal clarity for foreign investors and enforce AML/CFT compliance, promoting a transparent investment climate.
- Key Statistics: The national homeownership rate remains above 60%, with rental yields in key districts averaging 3–5% per annum (2024–2025 data, Department of Economic Planning and Statistics).
- Outlook (2025 and beyond): With government commitment to infrastructure, digitalization of land records, and investor-friendly reforms, Brunei is poised for sustainable, regulated growth in its real estate market. The country’s political stability and fiscal prudence further underpin positive long-term prospects.
As the regulatory environment matures and strategic projects come online, Brunei’s property sector is well-positioned to offer compelling opportunities for regional and international investors seeking stable, compliant, and growth-oriented markets.
Key Market Statistics: Residential, Commercial, and Industrial Sectors (2025)
The real estate sector in Brunei is shaped by a combination of demographic trends, government policy, and economic developments, all of which are reflected in the latest key market statistics for 2025. This section presents a snapshot of the residential, commercial, and industrial property markets, referencing data from official sources and highlighting compliance and regulatory considerations.
- Residential Sector: Brunei’s residential market remains dominated by landed properties, especially detached and semi-detached houses, reflecting strong cultural preferences and government support for home ownership. As of early 2025, the Ministry of Development continues to oversee the allocation of public housing under the National Housing Scheme, with over 30,000 houses delivered to citizens since inception. Demand for private residential developments remains subdued due to population stability and limited inward migration. Official statistics indicate a modest annual increase in residential transactions, with average prices for detached houses in Bandar Seri Begawan stabilizing at around BND 280,000–350,000, following several years of subdued growth (Ministry of Development).
- Commercial Sector: The commercial property market, particularly office and retail space, continues to face challenges from subdued economic growth and evolving business models post-pandemic. Vacancy rates in prime office locations hover between 15–20%, and rental rates remain competitive in an effort to attract tenants. The government’s push for economic diversification under Brunei Vision 2035 has spurred interest in mixed-use developments, but speculative construction is limited by prudent lending and regulatory oversight. Retail properties, especially in key urban centers, see stable demand but limited expansion, with a shift toward service-oriented tenants (Brunei Economic Development Board).
- Industrial Sector: Industrial real estate is a key focus for government-led development, primarily in support of the Halal industry, downstream oil and gas, and light manufacturing. The Sungai Liang Industrial Park (SPARK) and the Salambigar Industrial Park continue to attract investment, with occupancy rates for purpose-built facilities exceeding 80% in 2025. The government provides incentives and regulatory support for foreign direct investment in these zones, in line with the Foreign Direct Investment (FDI) Act and industrial land allocation policies (Ministry of Finance and Economy).
- Regulatory and Compliance Developments: The Land Code and the Housing Developers (Control and Licensing) Act remain central to real estate regulation, with ongoing compliance requirements for developers and agents. Recent amendments emphasize transparency in transactions, anti-money laundering (AML) controls, and stricter foreign ownership laws, including restrictions on non-citizen property ownership and leasing limits to protect local interests (Attorney General's Chambers).
Looking ahead, Brunei’s real estate sector is expected to remain stable, supported by government interventions, population trends, and cautious lending practices. While no rapid expansion is forecast, ongoing infrastructure investment and economic diversification initiatives may stimulate select segments, particularly in industrial real estate and mixed-use urban developments through 2025 and beyond.
Government Policies & Economic Drivers: Insights from the Ministry of Development
Brunei’s real estate sector in 2025 remains closely shaped by proactive government policies and economic frameworks implemented by the Ministry of Development (MOD). The MOD’s oversight encompasses land administration, urban and rural planning, and housing development, all of which directly influence property market trends and investment behavior.
Key policy initiatives continue to prioritize affordable housing and sustainable urban growth. Through the National Housing Scheme (Rancangan Perumahan Negara), the government aims to address housing demand and ensure equitable homeownership, with over 32,000 houses allocated to citizens as of 2024. The MOD’s strategy extends into 2025, focusing on new developments in areas such as Kampong Lambak Kanan and Kuala Belait, supporting Brunei’s target of providing quality housing while managing urban expansion and infrastructure needs (Ministry of Development).
On the economic front, Brunei’s Vision 2035 continues to be a guiding blueprint. The government’s push for economic diversification—reducing reliance on hydrocarbons—has direct implications for real estate demand in commercial and industrial segments. The establishment of industrial parks and support for SMEs is expected to spur increased demand for commercial properties, while reforms in business licensing and land use facilitate smoother transactions (Department of Economic Planning and Statistics).
Compliance and legal frameworks are governed by the Land Code (Chapter 40) and the Land Acquisition Act, both administered by the MOD and the Attorney General’s Chambers. These laws regulate land ownership, transfer, and foreign participation. Notably, foreign ownership is generally restricted, with leasehold arrangements (up to 60 years) available for non-citizens and foreign companies, subject to approval. All transactions require land title registration, and recent digitalization efforts have streamlined conveyancing and land data access (Land Department, Ministry of Development).
Statistically, residential property demand remains robust, driven by a youthful population and government-backed financing schemes. The MOD reports steady application rates for new public housing, while the private residential market sees moderate activity, with prices largely stable due to supply-side interventions. Commercial real estate is expected to expand modestly through 2025 as economic diversification accelerates.
Looking ahead, the real estate outlook in Brunei hinges on continued government intervention and economic reforms. Planned infrastructure upgrades, comprehensive urban planning, and an emphasis on sustainability—such as the Green Building Initiatives—are positioned to shape the sector. The MOD’s ongoing monitoring and policy tweaks are likely to maintain market stability, support homeownership, and foster controlled growth in the coming years.
Foreign Ownership Rules: Legal Pathways and Latest Taxation Updates
Brunei maintains a cautious approach toward foreign ownership of real estate, rooted in safeguarding national interests and preserving land for citizens. The Land Code (Chapter 40), administered by the Attorney General's Chambers, generally restricts non-citizens from acquiring land ownership except through specific legal mechanisms and government consent. As of 2025, foreigners are prohibited from owning land in perpetuity but may obtain limited rights through leases or by purchasing strata-titled properties under certain conditions.
The Brunei Darussalam Authority for Building Control and Construction Industry (ABCi) oversees compliance with development and property regulations. Foreign investors can participate in real estate mainly via long-term leases, typically up to 99 years, or by investing in properties held by registered companies in which Bruneians retain majority ownership. The Labuan Financial Services Authority facilitates regional investment structures, but direct land ownership remains limited.
Recent developments include government reviews of the strata title regime to encourage foreign investment in high-rise residential and commercial projects. The Brunei Land Department has clarified that foreigners may acquire strata-titled units in approved projects, provided they comply with ownership caps and local partnership requirements. These policy refinements reflect Brunei’s cautious opening to foreign capital while keeping majority control with citizens.
Taxation on real estate transactions has also evolved. As of 2025, there is no capital gains tax or inheritance tax in Brunei, making the country relatively attractive for property holding. However, buyers—regardless of nationality—must pay a stamp duty on transfer of property, ranging from 1% to 3% of the property’s value, as stipulated by the Ministry of Finance and Economy. Rental income from real estate is subject to personal or corporate income tax, depending on the ownership structure, with the Revenue Division ensuring compliance.
Looking ahead, Brunei is expected to maintain its conservative land policies, balancing the need for foreign investment with local interests. Regulatory updates may further streamline leasehold or strata-title pathways for foreign buyers, particularly in designated economic zones or special projects. However, substantive liberalization of direct land ownership remains unlikely through at least 2027, as national policy continues to prioritize Bruneian ownership and long-term societal stability.
Major Ongoing & Upcoming Real Estate Projects (Sources: mod.gov.bn, BEDB.gov.bn)
Brunei’s real estate landscape is undergoing significant transformation, driven by major government-backed developments and aligned with national economic diversification goals. The coming years are expected to see the completion and initiation of several landmark projects, primarily in the residential, commercial, and industrial segments, with the government playing a central role in master planning and execution.
A flagship ongoing project is the Brunei Vision 2035 urban expansion, which includes mixed-use developments and extensive housing schemes. The Ministry of Development continues to oversee large-scale public housing under the National Housing Scheme (Rancangan Perumahan Negara, RPN). As of the latest updates, over 30,000 houses have been allocated, with additional estates under construction to meet rising demand from Brunei’s growing population and young families. The next phase of RPN targets new clusters in areas such as Kampong Lugu, Kampong Katok, and Kampong Meragang Ministry of Development.
In the commercial and industrial domain, the Brunei Economic Development Board (BEDB) spearheads the development of industrial parks, special economic zones, and infrastructure projects to attract FDI and nurture local enterprises. The Sungai Liang Industrial Park (SPARK) and Bio-Innovation Corridor (BIC) remain key focal points, with ongoing expansion to accommodate downstream oil & gas, petrochemical, and biotech industries. Looking ahead to 2025 and beyond, the Salambigar Industrial Park and the Lumapas Industrial Park are set to receive fresh investments and new tenants, boosting demand for logistics, warehousing, and supporting real estate Brunei Economic Development Board.
The government also prioritizes smart urban planning and sustainability in new projects. Several upcoming mixed-use developments are designed with green building standards, enhanced connectivity, and social amenities, reflecting Brunei’s commitment to the United Nations’ Sustainable Development Goals. Notable is the planned Tanjong Batu Mixed-Use Waterfront Development, which aims to blend residential, retail, and recreational spaces along the Brunei River.
Compliance remains stringent, with all projects requiring approvals and periodic reviews by the Town and Country Planning Department and adherence to the Land Code (Chapter 40) and Building Control Order, 2014. Regular inspections and enforcement ensure safety, environmental, and zoning compliance Ministry of Development.
Looking toward 2025 and the next few years, Brunei’s real estate sector is expected to remain stable yet active, with moderate growth propelled by public investment, industrial diversification, and continued demand for quality housing and commercial spaces. These developments aim to enhance Brunei’s urban fabric, economic resilience, and quality of life.
Housing Affordability, Mortgages, and Lending Environment
Housing affordability in Brunei remains a significant policy focus in 2025, shaped by a combination of government intervention, stable economic conditions, and evolving financial sector regulations. The Brunei government continues to play a central role in providing affordable housing through initiatives such as the National Housing Scheme (Rancangan Perumahan Negara, RPN) and the Landless Indigenous Citizens Housing Scheme (Skim Perumahan Negara Bagi Rakyat Tanpa Tanah, STKRJ). These programs are designed to support Bruneian citizens, particularly those from low- and middle-income groups, by granting subsidized land and homes at below-market rates. According to the Ministry of Housing and Urban Planning, over 30,000 families have benefited from such schemes as of late 2024, with new phases regularly announced to meet ongoing demand.
Mortgage lending in Brunei is regulated primarily by the Autoriti Monetari Brunei Darussalam (AMBD), which oversees banks and finance companies. The mortgage market is dominated by local banks, which offer Shariah-compliant home financing products in addition to conventional loans. The AMBD maintains strict loan-to-value (LTV) limits—typically a maximum of 90% for first-time homebuyers—and prudent debt service ratio (DSR) requirements, aiming to prevent household over-leverage. These measures have helped keep the non-performing loan ratio in the residential mortgage sector below 2% as of Q4 2024, according to published banking sector statistics from the Autoriti Monetari Brunei Darussalam.
Interest rates on housing loans remain relatively low, supported by Brunei’s currency peg to the Singapore dollar and stable macroeconomic conditions. Typical mortgage tenures range between 15 and 25 years. However, private market housing remains expensive relative to average incomes, particularly for younger buyers and those not eligible for government schemes. The government has responded by increasing the availability of affordable housing land and exploring new financing models, including potential public-private partnerships for housing development.
From a compliance perspective, all property transactions must follow the provisions of the Land Code (Chapter 40) and related subsidiary legislation. Foreign ownership of residential land is highly restricted, with exceptions generally requiring ministerial approval. The government has also streamlined land registration and payment processes through digitalization, as outlined by the Attorney General’s Chambers of Brunei Darussalam.
Looking ahead, the outlook for housing affordability in Brunei is cautiously optimistic. Continued government investment in public housing, stable mortgage lending standards, and a steady regulatory environment are expected to support homeownership rates. However, ongoing challenges include keeping pace with population growth and ensuring that private market housing remains within reach for all segments of society.
Compliance, Zoning, and Environmental Regulations in Brunei
Brunei’s real estate sector operates within a well-defined regulatory framework shaped by government objectives, Shariah compliance, environmental priorities, and social policies. In 2025, compliance with zoning and environmental regulations remains a central concern for developers, investors, and property owners, as the authorities continue to strengthen oversight and enforcement.
- Compliance and Licensing: All real estate transactions, developments, and property management activities are governed by the Land Code (Chapter 40) and related subsidiary legislation. Land ownership by foreigners remains highly restricted, with most freehold and long-term leasehold titles reserved for citizens and permanent residents. The Land Department, Ministry of Development oversees approvals, title registrations, and compliance checks, while the Town and Country Planning Department handles development control and planning permissions.
- Zoning Regulations: Brunei utilizes a master planning approach, as seen in the District Development Plans and the Brunei Structure Plan 2035. These plans categorize land into residential, commercial, industrial, agricultural, and special use zones, with clear requirements for plot ratios, setbacks, and building heights. Unauthorized land use changes or construction without approval can trigger legal action, including demolition orders.
- Environmental Regulations: Environmental impact assessments (EIA) are mandatory for major developments under the Environmental Protection and Management Order, 2016. The Department of Environment, Parks and Recreation (JASTRe) reviews EIA submissions and enforces compliance with pollution controls, waste management, and biodiversity protection. Developers must integrate green spaces and adhere to limits on emissions and effluents.
- Recent Developments and Enforcement Trends: In 2024–2025, authorities have intensified site inspections and digitalized the planning approval process, aiming to expedite compliance checks and reduce approval lead times. The government also promotes sustainable construction and energy-efficient building standards, aligning with Brunei’s sustainability commitments under Brunei Darussalam National Climate Change Policy.
- Outlook: Over the next few years, the regulatory environment is expected to become more stringent as Brunei advances its Vision 2035 goals. Enhanced digital compliance tools, stricter enforcement of zoning restrictions, and increased emphasis on environmental stewardship will shape the operating landscape for real estate stakeholders.
Risks: Market Volatility, Legal Pitfalls, and Fraud Prevention
The real estate sector in Brunei in 2025 faces a distinctive risk landscape shaped by evolving market dynamics, regulatory changes, and the need for robust fraud prevention mechanisms. While Brunei’s property market has traditionally been characterized by relative stability due to strong government influence and land use planning, recent years have seen increased volatility influenced by macroeconomic shifts, policy adjustments, and global uncertainties.
- Market Volatility: The Brunei government remains a primary actor in land ownership and allocation, with most land classified as state property. However, market volatility arises from fluctuations in demand for residential and commercial properties, driven in part by demographic trends and economic diversification efforts. As the country advances its Wawasan Brunei 2035 vision, shifts in employment and population distribution are expected to cause periodic imbalances in supply and demand, particularly in urban centers. Interest rate adjustments and global energy market changes also influence property investment sentiment, making vigilance essential for both investors and developers.
- Legal Pitfalls: Real estate transactions in Brunei are governed primarily by the Land Code (Chapter 40) and Strata Titles Act (Chapter 189). Non-citizens face significant restrictions on property ownership, with only limited leasehold interests available, and all land dealings require approval from the Land Office. Failure to comply with prescribed procedures—such as proper registration, obtaining consent for transfers, and adherence to zoning requirements—can result in nullified transactions, forfeiture of rights, or protracted legal disputes. Recent court cases highlight the importance of clear title verification and the risks of informal or undocumented agreements.
- Fraud Prevention: Brunei’s authorities have prioritized anti-fraud measures in response to rising concerns about property scams, title forgery, and misrepresentation. The Anti-Money Laundering and Combating the Financing of Terrorism (AMLCFT) Brunei Darussalam regime imposes strict due diligence obligations on real estate agents, lawyers, and financial institutions involved in property transactions. Enhanced Know Your Customer (KYC) procedures, mandatory identity verification, and cross-checks with national registries have become standard, and any suspicious transactions must be promptly reported to the authorities. The Brunei Darussalam Monetary Authority has also issued specific compliance guidelines to minimize vulnerabilities to fraud and money laundering within the property sector.
Looking ahead, the outlook for risk management in Brunei’s real estate market hinges on continued regulatory vigilance, digitalization of land records, and sustained public awareness campaigns. Stakeholders are advised to stay abreast of legal updates, adhere strictly to compliance protocols, and leverage official channels for verification and reporting to mitigate exposure to market and legal risks.
Future Outlook: Predicted Growth Areas and Shifting Demand (2025–2029)
Brunei’s real estate sector is positioned for gradual transformation in the coming years, driven by evolving government policies, demographic factors, and the nation’s economic diversification agenda. As of 2025, the sector remains relatively small compared to regional peers, but targeted initiatives and shifting consumer preferences are expected to shape its trajectory through 2029.
- Economic Diversification and Infrastructure Development: The Brunei government’s Vision 2035 (Wawasan Brunei 2035) continues to guide the nation’s long-term planning, emphasizing infrastructure upgrades and the development of non-oil sectors. Increased investment in tourism, logistics, and modern urban amenities—such as the Ministry of Finance and Economy projects—are likely to stimulate demand for mixed-use developments, hotels, and commercial properties in designated growth corridors.
- Residential Market Trends: Demand for affordable housing remains robust, particularly among younger Bruneians and first-time buyers. The Land Department continues to prioritize public housing schemes, and ongoing releases of government land are expected to support steady construction activity. However, the high rate of home ownership and limited population growth may temper speculative activity and keep price inflation moderate.
- Foreign Investment and Regulatory Environment: Foreign ownership of land remains restricted under Brunei’s laws, with leasehold arrangements (up to 60 years) permitted in selected cases. Regulatory compliance—including adherence to the Land Code and the Companies Act for commercial entities—is under continued scrutiny by the Attorney General’s Chambers and the Ministry of Primary Resources and Tourism. Any future policy adjustments or incentives for foreign direct investment (FDI) in real estate will likely focus on niche segments such as hospitality, logistics, or industrial parks.
- Commercial and Industrial Property: Growth in the commercial and industrial segments is anticipated, particularly in support of the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) initiatives. Strategic projects like the Pulau Muara Besar industrial park and logistics hubs are expected to attract new tenants and investment, as documented by the Brunei Economic Development Board.
- Compliance and Sustainability: Brunei’s real estate market will face increasing compliance requirements around building codes, sustainable development, and land use planning. The Ministry of Development is actively updating standards to improve safety, resilience, and environmental stewardship in new projects.
Overall, while Brunei’s real estate sector is expected to grow at a measured pace, targeted investments, regulatory evolution, and a focus on sustainability will define its outlook from 2025 to 2029.
Strategic Recommendations for Investors, Developers, and Homebuyers
Brunei’s real estate sector in 2025 remains defined by its distinctive regulatory environment, modest but stable market size, and evolving demand patterns. Investors, developers, and homebuyers should carefully align their strategies with prevailing laws and market realities, while anticipating gradual shifts in the country’s economic and demographic landscape.
- Understand Land Ownership Laws: Brunei’s land ownership regime is governed by the Land Code (Chapter 40) and related regulations. Foreigners are generally restricted from direct land ownership and may only acquire strata-titled properties (typically apartments) or leasehold interests (up to 60 years, with possible extensions). Investors and developers must structure projects and acquisitions accordingly, ensuring compliance with all Ministry of Development and Land Department requirements (Ministry of Development).
- Prioritize Compliance and Due Diligence: All real estate transactions require approval and registration with the Land Department. Strict adherence to anti-money laundering (AML) and property transaction laws is essential. Developers must obtain housing development licenses and comply with planning, environmental, and construction standards prescribed by the Department of Town and Country Planning and Public Works Department. Homebuyers should verify land titles and check for encumbrances or government reservations before purchase.
- Leverage Government Housing Initiatives: Brunei’s National Housing Scheme continues to expand, offering affordable homeownership opportunities for citizens (Department of Housing Development). Developers can explore partnerships through public-private arrangements or by pursuing projects that align with national social housing goals.
- Monitor Market Segments and Economic Trends: Brunei’s real estate market remains stable, with moderate demand and relatively low transaction volumes compared to regional peers. The government’s focus on economic diversification and infrastructure upgrades may stimulate demand for industrial and logistics properties. Investors should track demographic trends, including the growing youth population and shifts in household formation patterns (Department of Economic Planning and Statistics).
- Anticipate Regulatory and Sustainability Developments: The government is likely to introduce stricter environmental and sustainability requirements in property and urban development, in line with national visions for sustainable growth (Department of Environment, Parks and Recreation). Developers and investors should integrate green building standards and resource-efficient designs to future-proof their assets.
In summary, Brunei’s real estate sector offers stable, low-risk prospects for compliant investors and developers. Strategic focus on compliance, government priorities, and emerging market trends will be essential for long-term value creation.
