Vietnam’s Real Estate Sector Poised for Growth in 2025, JLL Reports
Hanoi, The Gulf Observer: JLL, a leading market research company, forecasts a revitalized Vietnamese real estate sector in 2025, driven by strong investor confidence, lower borrowing costs, and increased transaction activity across key asset categories. These insights are outlined in its latest report, Vietnam Property Market Outlook 2025: A New Chapter in Economic Growth.
Implemented foreign direct investment (FDI) reached US$25.4 billion in 2024, marking a 9.4 percent year-on-year increase. Major infrastructure investments are further accelerating the expansion of real estate hotspots across the country.
“As Vietnam’s economy continues to grow amid market fluctuations, we are seeing an improving investment landscape, a rising middle class, and an increasingly sophisticated investor base,” said Trang Lê, Country Head of JLL Vietnam. “These factors are reinforcing Vietnam’s position as an attractive real estate market in Southeast Asia.”
JLL remains optimistic about investment opportunities in 2025, citing increased deal flows, robust fundamentals, and ongoing regulatory enhancements as key growth drivers.
“Vietnam’s real estate market is showing clear signs of strengthening, and we anticipate a significant uptick in investment activity as we progress through 2025,” said Michael Glancy, Managing Director of JLL Thailand, Indonesia, Philippines & Vietnam. “The easing of borrowing costs and a notable boost in investor confidence are key drivers behind this positive trend.”
Key Sectoral Insights:
Office Leasing Market:
Vietnam’s office leasing market has demonstrated resilience, with net absorption surpassing 43,000 square meters in 2024, signaling a steady rebound in corporate demand. Green-certified office buildings are experiencing heightened leasing interest due to increasing focus on sustainability and well-being.
“Occupiers are increasingly seeking high-caliber workspaces that enhance productivity and support sustainability,” noted Will Tran, Head of Office Leasing Advisory at JLL Vietnam. This shift is particularly visible in Ho Chi Minh City’s Central Business District, where Grade A and A+ office spaces saw a 1.3 percent year-over-year increase in asking rents.
Residential Sector:
Following record-low supply levels in 2024, Vietnam’s residential sector is set for a resurgence. Regulatory amendments are improving transparency and streamlining project approvals, attracting developers and investors. Demand remains strong in Hanoi and Ho Chi Minh City, with growing interest in satellite areas.
Industrial and Logistics Sector:
Vietnam continues to be a top destination for manufacturing in Southeast Asia, benefiting from changing regulations, global market shifts, and substantial infrastructure development.
“Vietnam’s logistics and industrial market is evolving rapidly, with record implemented FDI of $25.4 billion in 2024,” said Vân Nguyễn, Head of Transactions for Northern Vietnam. “The sector is expanding beyond traditional hubs, driven by infrastructure improvements and a shift towards high-tech, eco-friendly developments.”
As market conditions continue to improve, JLL anticipates a surge in real estate transactions and development projects, reinforcing Vietnam’s position as a prime market for investment opportunities in Southeast Asia.
