Asia Pacific Real Estate Stabilises In 2026: Viet Nam Emerges As A Growth Leader

Data from Vietnam’s General Statistics Office (GSO) and international research organizations indicate that GDP growth between 2022 and 2025 clearly reflects a recovery trend alongside sustained stability. After achieving 8% growth in 2022, GDP growth moderated to around 5.1% in 2023 amid global economic headwinds before rebounding to 7.1% in 2024 and reaching 8% in 2025. This trajectory positions Viet Nam among the fastest-growing economies in the Asia Pacific region. 

Beyond maintaining strong growth momentum, the quality of economic expansion has also improved significantly. According to the Asian Development Bank (ADB) and GSO, Viet Nam’s GDP per capita grew steadily from US$3,700 in 2022 to US$5,026 in 2025. Growing incomes and the expansion of the middle class are creating a solid foundation for domestic consumption while simultaneously driving demand for transportation infrastructure, logistics, urban development, and commercial services, all of which generate strong spillover effects. 

Across the broader regional landscape, Savills expects demand for Grade A office space in Asia Pacific to remain positive, particularly in emerging talent hubs such as India, Vietnam, and Malaysia. These markets are attracting multinational corporations seeking to expand their presence and access high-quality labor at competitive costs. Meanwhile, the retail sector is benefiting from recovering consumer spending, tourism growth, and the return of international brands, while the supply of high-quality retail space in many markets continues to lag behind demand. 

Within the industrial and logistics real estate segment, the “China Plus One” strategy, supply chain diversification, and the rapid expansion of e-commerce remain key growth drivers. Savills forecasts that rentals across most major regional markets will continue on an upward momentum, reflecting genuine occupier demand and the increasingly critical role of logistics infrastructure within global value chains. 

According to Neil MacGregor, CEO of Savills Vietnam, regional trends are becoming increasingly evident in Viet Nam’s market, albeit with greater depth and quality. 

MacGregor notes,“Viet Nam has moved beyond the phase of attracting investment primarily based on cost advantages. Capital flows are now increasingly directed towards higher value-added sectors such as technology manufacturing, electronics, modern logistics, and industries integrated into global supply chains. This shift is reshaping real estate demand towards higher quality, sustainability, and longer-term development.”  

One of the key factors reinforcing the long-term outlook of the country’s real estate market is the continued stability of high-quality foreign direct investment (FDI). In 2025, total registered FDI reached US$38–40 billion, while disbursed capital achieved a record high, reflecting long-term confidence among foreign investors in Viet Nam’s business environment. Notably, European capital flows are becoming more selective, focusing on high value-added sectors such as technology, electronics, advanced manufacturing, and logistics. The gradual elimination of import tariffs under the EVFTA for more than 99% of export tariff lines to the EU by 2027 is expected to further strengthen Viet Nam’s position within global supply chains while enhancing its attractiveness to long-term investors. 

Alongside FDI inflows, large-scale public investment in infrastructure is increasingly viewed as a key growth engine for the economy and the real estate market over the medium and long term. Accelerated implementation of major projects such as the North–South Expressway, Long Thanh International Airport, Ring Roads in Ha Noi and HCMC, as well as numerous logistics and energy projects, is expected to improve regional connectivity, encourage urban decentralisation, and create new growth hubs along strategic infrastructure corridors. 

MacGregor emphasises, “Infrastructure will be the most important growth driver for the real estate market over the next decade. As transportation and logistics networks are completed, satellite cities and secondary urban centres will emerge as new development hubs, expanding growth space for the entire market.”  

In terms of investment activity, Savills forecasts that total real estate investment volume in Asia Pacific will increase by 7% in 2026, reflecting a more stable cycle compared with the US and European markets. While China continues to weigh on overall capital flows, markets such as Japan, Australia, and South Korea remain attractive due to strong occupier fundamentals and high stability. As global investors become increasingly cautious and selective, markets demonstrating real economic growth, strong domestic demand, and improving regulatory frameworks, such as Viet Nam, are expected to hold long-term advantages. 

MacGregor concludes, “The next phase will not be a game of short-term growth, but rather a capital allocation strategy based on real usage value, infrastructure, and a sustainable development vision. Markets that execute well on these factors will become focal points for capital flows in the years ahead.”