Real Estate Poised for Strong Growth Momentum

Delegates gather for a group photo at the conference

According to experts at the conference, despite global fluctuations, Vietnam remains one of Asia’s fastest-growing economies. By 2024, realized capital from Foreign direct investment (FDI) projects reached US$25.4 billion, up 9.4% from 2023. The real estate sector's GDP grew by 3.34% in 2024, reflecting the sector's recovery and rising investment activity. A wave of major infrastructure projects has been launched, further fueling the growth of real estate hotspots nationwide.

"In the context of Vietnam's economy continuing to grow amid market fluctuations, we see an improved investment environment, a growing middle class and increasingly professional investors. These factors have contributed to strengthening Vietnam's position as an attractive real estate market in Southeast Asia", said Trang Le – Country Head of JLL Vietnam.

In Vietnam's real estate market, office rental demand has rebounded strongly, making it a standout sector in 2024. The total net absorption area exceeded 43,000 m². As businesses increasingly prioritize health and sustainability, green-certified office buildings have become the top choice for tenants.

According to Will Tran, Head of Office Leasing Advisory at JLL Vietnam, Vietnamese enterprises tend to look for high-class, modern workspaces to both meet sustainable green criteria and improve work efficiency, and this is also an opportunity for the high-class office rental market to develop. In central Ho Chi Minh City, asking prices for Grade A and A offices rose by 1.3% in 2024 compared to the previous year, an impressive increase despite a record surge in new supply within just six months. This growth highlights the rising demand for high-quality, environmentally friendly workspaces.

The Vietnamese real estate market is demonstrating signs of recovery, with investment activities expected to surge in 2025

For the housing market, experts predicted that housing supply in Vietnam will have a strong recovery thanks to policy adjustments that increase transparency and speed up the project approval process. Beyond the key markets of Hanoi and Ho Chi Minh City, real estate developers and investors are increasingly focusing on satellite areas, where demand for rental housing is on the rise. "The housing market is entering a more sustainable growth cycle thanks to the combination of urbanization, the rise of the middle class and policy reforms. We expect increasing transaction activities in well-planned housing projects, especially in the mid- and high-end segments," said Mr. Bach Ta, Director of Capital Markets at JLL Vietnam.

Regarding the industrial real estate market and supply chain, Van Nguyen, Head of Transactions, Northern Vietnam at JLL, said that Vietnam continued to be a leading destination in Southeast Asia thanks to its strategic location and advantages from the "China1" strategy. In addition, changes in local policies, the shift of global supply chains and ambitious infrastructure development plans also help to enhance the attractiveness of the industrial market and supply chain in Vietnam. "Vietnam's industrial real estate market and supply chain are growing strongly with FDI in 2024 reaching a record of US$25.4 billion. Manufacturing and real estate are the industries receiving the largest FDI. This market is expanding beyond traditional centers thanks to the level of infrastructure improvement and the trend of developing high-tech, environmentally friendly industrial parks. This also shows the role and importance of Vietnam in the global supply chain," Van Nguyen emphasized.

From the above favorable conditions, experts showed a very optimistic view on the prospects for real estate investment in 2025, in which the main supporting factors include increased transaction capital flows, a strong economic foundation and a continuously reformed legal environment.

Mr. Michael Glancy, Managing Director of JLL for Thailand, Indonesia, Philippines and Vietnam, commented that the Vietnamese real estate market is showing clear signs of recovery and investment activities are expected to increase sharply in 2025 thanks to improved investor sentiment, lower borrowing costs and increased transaction activity across key segments. In addition, Vietnam's fundamental advantages such as a young and dynamic workforce, developed infrastructure and open investment attraction policies will continue to make the country an attractive destination for real estate investment projects across many segments. "As market conditions continue to improve, we will witness a strong increase in new transactions and development projects, contributing to strengthening Vietnam's position as a leading vibrant and attractive real estate market in Southeast Asia," Michael Glancy expected.