Hanoi’s office market increasingly attractive to foreign tenants: Savills Hanoi

Illustrative image (Photo: VNA)

Hanoi (VNA)- Hanoi’s office market is said to bemore attractive than its counterparts in other Southeast Asian cities and even inthe Asia-Pacific region because of cheaper rentals and greater supply, accordingto real estate consultants Savills Hanoi.

It is also believed to possess the factors necessary for it to developfurther in the future.

According to the director of Savills Hanoi, MatthewPowell, Vietnam is a target market of multinational companies, especially thoseoperating in technology, financial services, and life insurance.

Hoang Nguyet Minh, commercial leasing director at Savills Hanoi, said the capitalwelcomed three Grade A office projects in the fourth quarter of 2020 and thefirst quarter in 2021 - Capital Place, with 93,000 sq m, Thaiholdings Tower with23,000 sq m, and Leadvisors Tower with 18,000 sq m.

Occupancy at Grade A buildings stood at over 80 percent in the period, sheadded.

As of the end of the first quarter of this year, the total office areaavailable for leasing in the market amounted to more than 2 million sq m, a 10 percentincrease year-on-year.

Grade A posted the highest growth, of 24 percent, while the figure for Grade Bwas 9 percent.

Foreign direct investment (FDI) directly influences the number of foreign tenantsand has been on the rise in recent years, except in 2020.

Vietnam attracted 38 billion USD in FDI in 2019 - the highest in a decade -then 28.5 billion USD last year. The figure for the first quarter was 10.13 billionUSD, up 18.5 percent year-on-year.

Over 70 percent of tenants in Hanoi arelocal businesses and those from Japan, the Republic of Korea, the US, and Singapore,and the figure is predicted to continue to increase in the time to come./.

VNA