MM2H visa holders face potential property risks under proposed URA
The draft Urban Renewal Act could allow compulsory acquisition of MM2H-owned homes, affecting retirees with Silver, Gold or Platinum tiers.
The short version
- URA may permit redevelopment of properties as old as 30 years with majority owner consent.
- Dissenting MM2H owners could be forced to sell under the Land Acquisition Act.
- Compensation rules under URA remain unclear, raising concerns for foreign retirees.
- Property values in designated renewal zones may become volatile.
- The bill has been temporarily withdrawn but may return in revised form.
How the URA works
The Urban Renewal Act is a draft law intended to speed up the redevelopment of ageing or under‑utilised urban land. Under the proposal, property developers would trigger the process, and any building that is 30 years old or older could be earmarked for renewal. A consent threshold of roughly 75% to 80% of owners is required before work can begin, although the exact figure is still being debated in Parliament.
Prime Minister Datuk Seri Anwar Ibrahim has publicly assured that the URA will not result in forced evictions or alter land status for original owners. Nevertheless, urban planners, community groups and the National House Buyers Association warn that the draft could erode constitutional property protections and diminish minority owners’ rights, especially where developers can proceed without unanimous consent.
Impact on MM2H owners
MM2H participants – whether on the Silver, Gold or Platinum tier – must meet financial criteria that include fixed deposits of USD 150,000, USD 500,000 or USD 1 million and must use a licensed agent to purchase property. They are allowed to buy residential units priced above RM1,000,000 and hold freehold or strata titles identical to Malaysian citizens. If such a property is later classified within a URA renewal zone, the same consent rules would apply, potentially overriding the visa holder’s ownership preference.
The draft gives the government the power to compel dissenting owners to sell or to have their land acquired under the Land Acquisition Act once the majority threshold is met. For foreign retirees, this raises questions about the adequacy of compensation, which the Bill suggests could be a one‑for‑one replacement or cash, but no clear formula has been set. Strata‑titled blocks with multiple owners could see complex legal battles, especially if owners reside overseas during the process.
Market and legislative outlook
The mere prospect of compulsory acquisition is already influencing buyer sentiment. Properties located in areas earmarked for potential renewal are experiencing price swings, with some investors demanding discounts while others speculate on future value gains. This uncertainty may deter MM2H applicants from purchasing older strata units that are over 30 years old, a segment that has traditionally formed a significant portion of the programme’s sub‑sale market.
Parliament has temporarily withdrawn the URA from the immediate agenda, citing the need for further refinement before it returns to debate. Stakeholders, including the MM2H Association, tourism and expatriate groups, have called for clear guidelines on compensation and protection of foreign owners. Until a final version is enacted, MM2H visa holders should monitor renewal zone maps and consider legal advice to safeguard their investments against possible future redevelopment.
“Prime Minister Datuk Seri Anwar Ibrahim has publicly assured that the URA will not result in forced evictions or alter land status for original owners.”
What it means
What this changes for an applicant
- If your MM2H home falls within a renewal zone and the consent threshold is met, you may be required to sell even if you object.
- Any compensation you receive will depend on guidelines that are still being debated, so cash or replacement property is not guaranteed.
- You may need to engage legal counsel, potentially from abroad, to protect your rights during the acquisition process.
- Until the legislation is finalised, property values in affected areas could fluctuate, influencing resale plans.
Source
This article was written by Malaysia Visa Guide, based on reporting by The Star. We summarise and explain the news in our own words; we do not reproduce it. Read the original report for the publisher's full account.
Last updated 26 July 2026.
Written and reviewed by Jason Yap, Managing Director of MYPVIP.
Last reviewed 26 July 2026.
News is a starting point, not advice.
For what this means in your own case, the verified figures live in the MM2H guide, or run the eligibility checker.