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Friday, July 19, 2024

Opportunities ample in Hanoi’s real estate market – report

The Saigon Times

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HCMC – Savills Hanoi said in a recent report that there remain opportunities in Hanoi’s real estate market, with landlords having plans to create dynamic mall concepts and international retailers eyeing the capital city for future expansion.

The recent launch of Lotte Mall West Lake Hanoi with 233 retail stores has provided impetus for the restructuring of several shopping centers and retail spaces in Hanoi.

Blending leisure, entertainment, and brand-building experiences in malls is expected to create dynamic hubs for shoppers, according to experts.

Data showed that shopping centers accounted for 62% of the net leasable area (NLA) in Hanoi in the third quarter of 2023, totaling 1.1 million square meters.

In addition, the city has seen growing demand for offices meeting green standards, particularly with the adoption of environmental, social, and corporate governance (ESG) principles.

Some 68,400 square meters of green office space will be made available by the end of 2025, driven by upcoming developments like 27-29 Ly Thai To, Grand Terra, and Tien Bo Plaza.

Savills forecast that the Hanoi office space would witness more than 256,000 additional square meters from 13 projects by 2026, with Grade A office spaces comprising 77% of the supply.

Regarding the hotel sector, Hanoi’s tourism reached its peak in July this year with seasonal domestic visitors, although international visitors are still below pre-Covid levels, said Troy Griffiths, deputy director at Savills Vietnam.

In September, average hotel room rates increased by 22% year-on-year, reaching VND2.7 million per room per night.

The opening of 3,720 new hotel rooms through 17 under-construction developments in Hanoi, including 12 five-star and 2 four-star projects, is expected to make a major push to attract tourists. Leading brands like Marriott and Hilton will account for 29% and 26% of the total rooms, respectively.

Meanwhile, foreign direct investment inflows continue to drive demand for serviced apartments in the city. In the third quarter of this year, stocks of new Grade A projects, totaling 6,158 units, increased by 4% compared to the same period in 2022.

The monthly rent rose by 2% year-on-year at VND578,000 per square meter.

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