Illustrative image (Photo: VNA) HCM City (VNA) - Government policies and market forces are expected to propel the realestate sector for continued growth in 2024, with demand inindustrial and office leasing segments expected to increase, according to experts from Savills Vietnam.
The latest report of the company saidhi-tech investment incentives are generating significant demand for industrialreal estate, including warehouses, cold storage facilities, logistics and datacentres. Tax incentives, favourable land policies and streamlined administrativeprocedures have attracted high-tech investors to Vietnam, notably giants fromthe US, the Republic of Korea and Japan.
To meetthe ever-growing demand, developers have heavily invested in industrial realestate projects, especially in areas with potential in attracting hi-tech projects such as HoChi Minh City, Hanoi, Binh Duong, Dong Nai, Bac Ninh, Bac Giang and Thai Nguyen.
Accordingto Savills Vietnam, the Vietnamese office market has defied the global trend,maintaining a high occupancy rate with stable rental growth. Notably, Ho ChiMinh City stands out as one of the potential office markets in the Asia-Pacific,boasting an occupancy rate of over 90%, while Hanoi also witnesses a highoccupancy rate of 85%.
Foreignenterprises and technology companies are increasingly interested in Environmental,Social, and Governance (ESG) standards,leading to a growing demand for certified sustainable offices. In Ho Chi MinhCity, around 28% of Grade A office supply is green certified, and it ispredicted that by 2026, 80% of Grade A and B office supply will be certified.
InHanoi, 20% of Grade A office supply was already green certified as of December2023, with an additional 68,400 sq.m of green office space expected from newprojects such as 27-29 Ly Thai To, Grand Terra, and Tien Bo Plaza.
GeneralDirector of Savills Vietnam Neil MacGregor said there is a growing demand for offices insuburban areas where rental prices are lower and commuting to industrial zonesand high-tech parks is more convenient.
By the end of 2026, Grade Aand B office supply in Ho Chi Minh City is projected to increase by anadditional 200,000 sq.m, representing a 20% increase from the current supply.Hanoi is expected to add 220,000 sq.m, up 13% from the existing supply./.
