Foreign direct investment (FDI) plays a crucial part in stimulating economic growth in developing nations. To magnify its influence, foreign capital inflows need to be efficaciously integrated into the host nation’s development strategies to increase productive capacity, improve global competitiveness, and encourage real estate development. It is important to understand the influence of FDI on the property market within industrial zones, especially as Malaysia attempts to bring in greater FDI and fortify the real estate sector, besides promoting balanced regional development. This study focuses on the limited research on the connection between FDI and residential property prices in the industrial zones of Malaysia, particularly areas surrounding the Kulim Hi-Tech Park (KHTP) and Batu Kawan Industrial Park (BKIP). Based on statistics from 2000 to 2022, the finding unveils a positive correlation between FDI inflows and residential property prices in these two zones. The results highlight the seriousness of constituting targeted policies and strategies within the industrial master plan and housing frameworks, with the objectives of boosting economic resilience and stabilizing the housing market to propel sustainable development in Malaysia.