JLL: Vietnam’s real estate grows strongly

Vietnam’s real estate market is experiencing strong growth due to improved investor sentiment, lower borrowing costs, and increased transaction activity across key segments.

According to the lastest report from renowned market research company JLL, titled 'Vietnam Property Market Outlook 2025: A New Chapter in Economic Growth,' providing an in-depth analysis of the market forces shaping 2025.

Economic foundation remains strong

Vietnam remains one of the fastest-growing economies in Asia despite global fluctuations. The realized capital of foreign direct investment (FDI) stood at $25.4 billion in 2024, increasing 9.4 per cent year-over-year (YoY). Major infrastructure investment projects have contributed to the development of real estate hotspots nationwide.

According to Ms. Trang Le, Country Head of JLL Vietnam, the investment environment is improving, the middle class is rising, and investors are becoming more professional. These factors are strengthening Vietnam’s position as an attractive real estate market in Southeast Asia.

Office market: Shifting towards quality investment

Over 43,000 sq m of net absorption in 2024 was recorded in Vietnam’s office leasing market, demonstrating a strong recovery in corporate demand. Green offices, which prioritize sustainability and tenant well-being, are now becoming the preferred choice for leasing.

“Businesses are seeking high-end, modern workspaces that not only enhance productivity but also meet sustainable criteria. This trend is driving demand for premium office spaces,” Mr. Will Tran, Head of Office Leasing Advisory at JLL Vietnam, shared.

This shift is particularly evident in the center of Ho Chi Minh City, where asking rents for Grade A and A+ offices have increased by 1.3 per cent YoY. This is an impressive figure, considering the record-high new supply introduced to the market within six months, reflecting the growing demand for high-quality and environmentally friendly workspaces.

Residential market: Strong rebound

After hitting a low in 2024, Vietnam’s residential supply is predicted to rebound strongly, aided by policy adjustments, enhanced transparency, and accelerated project approvals.

Developers and investors continue to focus on Hanoi and Ho Chi Minh City. However, they are increasingly shifting attention to satellite areas, where demand is showing significant growth.

According to Mr. Bach Ta, Director of Capital Markets Transactions at JLL Vietnam, the market is entering a more sustainable growth cycle, driven by urbanization, an expanding middle class, and policy reforms.

“We expect transaction activity to be more vibrant in well-planned residential projects, especially in the mid-to-high-end segments,” Mr. Bach shared.

Industrial & supply chain market: Elevating Vietnam’s global position

Vietnam remains a top manufacturing destination in Southeast Asia, benefiting from the “China Plus One” strategy. Moreover, the country is now capitalizing on local policy shifts, global supply chain adjustments, and ambitious infrastructure development plans, further enhancing the attractiveness of its industrial and supply chain market.

According to Ms. Van Nguyen, Head of Transactions for Northern Vietnam at JLL Vietnam, Vietnam’s industrial and supply chain market is expanding rapidly, with realized FDI reaching a record $25.4 billion in 2024.

“Manufacturing and real estate remain the largest sectors attracting FDI. Additionally, the market is expanding beyond traditional hubs, driven by infrastructure improvements and the rise of high-tech, eco-friendly industrial parks, reinforcing Vietnam’s importance in the global supply chain,” Ms. Van shared.

Get ready for a breakthrough

Vietnam’s real estate sector is entering a new chapter of economic growth, supported by rising transaction volumes, a strong economic foundation, and ongoing regulatory reforms. Consequently, JLL experts remain optimistic about the investment outlook for 2025.

Mr. Michael Glancy, Managing Director for Thailand, Indonesia, the Philippines & Vietnam at JLL, stated that Vietnam’s real estate market is clearly recovering, with investment activity expected to surge in 2025.

Lower borrowing costs and improved investor sentiment are key drivers of this positive trend. Moreover, Vietnam’s fundamental strengths, including a young and dynamic workforce, developing infrastructure, and investment-friendly policies, are positioning the country as an attractive destination for real estate projects across various segments.

“As market conditions further improve, we expect an increase in transactions and new developments, reinforcing Vietnam’s status as a leading real estate market in Southeast Asia,” Mr. Glancy shared.