Vietnam Commercial Real Estate Market 2021-2026 – Growing Demand for Quality Office and Retail Inventory in Centralized Locations, with Hanoi CBD in Focus –

DUBLIN – (COMMERCIAL THREAD)–The “Vietnam Commercial Real Estate Market – Growth, Trends, COVID-19 Impact and Forecast (2021-2026)” the report was added to offer.

The commercial real estate market in Vietnam is expected to experience a CAGR of 14.89% during the forecast period 2021-2026.

Despite signs of cyclical moderation in growth, Vietnam’s outlook remains positive. The Vietnamese economy is experiencing strong growth, with laws forcing foreigners to invest more in its development. As a result, there has been a wave of high-end real estate developments in the country.

Improved infrastructure supporting the tourism industry, which has always been one of Vietnam’s priority investment areas, has catapulted the boom in many tourist cities in recent years. Local demand in Vietnam is also increasing, as Vietnamese entrepreneurs seek investments where they can invest their money.

The long-term outlook for the commercial real estate sector is positive due to continued strong economic conditions in the country, supported by rising consumer spending and the strength of the tourism industry.

In commercial real estate, the hospitality sector in Vietnam is experiencing strong growth. At the end of the third quarter of 2019, it is estimated that there were 442 four and five star hotels in operation in Vietnam, providing 91,236 keys to the market.

In the office segment, the banking / insurance, manufacturing and IT sectors are expected to drive demand, with coworking spaces showing particularly notable growth.

In the retail segment, many new retailers are opening stores or looking to establish a foothold in Vietnam, introducing new concepts to the local market that will attract visitors and would like to expand in the business of the sector. commercial.

Key market trends

Growth trend in Vietnamese e-commerce and industrial real estate

The commercial real estate market in Vietnam is growing at a CAGR rate of 14.89%. Building on the momentum of 2018, Vietnam welcomed nearly 13 million foreign visitors in the first nine months of 2019, an increase of 10.8% year-on-year. Besides hospitality and hospitality, Vietnam is now one of the fastest growing e-commerce markets in Southeast Asia. Amid the COVID pandemic, more and more consumers have chosen to shop online, increasing the demand for cold stores for food and other essentials.

E-commerce requires three times more storage space than traditional logistics activities. According to JLL, domestic and foreign investors have targeted healthcare logistics as they will need more refrigerated warehouses to meet the growing demand for temperature-sensitive products like food, drugs and COVID-vaccines. 19. In the retail sector, according to CBRE Vietnam, Ho Chi Minh City is expected to have over 200,000m² of new retail space through 2023, in both CBD and non-CBD areas. Categories such as F&B, Health and Beauty will continue to thrive on the retail catwalks.

The Vietnamese industrial property market has performed well and is expected to grow. While Samsung Electronics has a huge factory covering 67,088 m². in Ho Chi Minh City, Apple Inc. has plans for further expansions in the country. As Vietnam is poised to become the new manufacturing hub in Asia, the industrial real estate market has outperformed other commercial real estate sectors. In the first three quarters of 2020, nearly 47% of all foreign direct investment (FDI) went to manufacturing.

Workplace real estate continues to grow in Vietnam

In 2020, a work from home experience took place on a global scale and showed that by leveraging technology, businesses can continue to operate efficiently. But for many, the lack of face-to-face interaction has put pressure on teams, and while a number of our clients expect to adopt flexible working practices in the future, for the most part. majority, this will include the office remaining the focal point of commercial activities. Coworking spaces are a growing segment of office real estate in Vietnam.

During the difficult period of the first half of 2021, Toong, one of the first and largest chains of coworking spaces in Vietnam, commissioned new projects. In March 2021, Toong’s first resort under a strategic cooperation project with Wink Hotels was also officially launched at 75 Nguyen Binh Khiem, District 1. According to Cushman & Wakefield, the Vietnamese flexible office space industry in 2020 occupied approximately 160,000 m² space in buildings of category A and B in the two central cities of offices, less than four percent of the total inventory of category A and B. In 2020 and 2021, the number of Coworking offices and serviced offices in Vietnam are expected to exceed this amount.

Competitive landscape

Commercial real estate in Vietnam has an average level of market share concentration. International investors are also drawn to the Vietnamese market and are looking to invest in almost all segments, from offices to retail and upscale hotels. The developers are active in creating new hospitality products for sale, the most notable of which are the coastal boutique / boutique villa in Phu Quoc and Ha Long.

In hotel real estate, Vietnamese developers need to diversify their market by paying attention to the non-traditional market and bringing in professionals to manage their property. There is a growing demand for quality office space and retail inventory in centralized locations, with an emphasis on Hanoi’s business district. Strong manufacturing and tourism will maintain strong demand for retail, office and industrial units.

Profiled companies

  • Vingroup

  • Dat Xanh Group

  • FLC Group

  • Toong

  • Nam Long Investment Company

  • Sun Group

  • Necklaces International Vietnam

  • Savills Vietnam

  • CBRE Vietnam

  • JLL Vietnam

  • Vietnam House

  • Full House Vietnam

  • Luxury stay

  • My turn

  • Vntrip

  • Ivivu and

  • Vietnambooking

  • Vincom JSC

  • Bitexco

  • Lilama land

  • Phat Dat Real Estate

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