A view of the Hà Nội skyline. While rental properties continue to be in demand, there has also been a notable rise in the number of foreigners looking to buy houses. — VNA/VNS Photo

HÀ NỘI — The demand for housing from foreigners is anticipated to continue, driving an existing upward trajectory in Hà Nội, signalling a positive development for the domestic real estate market.

Over several years, Hà Nội has increasingly become an attractive destination for foreign workers, a trend that is set to accelerate as more opportunities for home ownership open up.

Each year, approximately 10,000 new foreign workers are granted licences to work in Hà Nội. The majority of these are highly skilled professionals, which drives the demand for high-end housing options.

This influx of skilled labour is in line with Việt Nam's broader economic growth and the ongoing wave of foreign direct investment (FDI) into the country.

According to the Việt Nam Association of Real Estate Brokers (VARS), this growing workforce has contributed to Hà Nội becoming a key destination in terms of foreign demand.

A major development in this trend is the implementation of the Housing Law 2023, which officially took effect on August 1, 2024.

This law has made it significantly easier for foreigners to buy homes in Việt Nam, facilitating a surge in demand for real estate ownership among foreigners.

The law provides more favourable conditions for property ownership by allowing foreign buyers to hold property for up to 50 years, with the possibility of a one-time extension. This has incentivised many foreign customers to consider long-term residence options, particularly living in high-end properties.

According to VARS chairman Nguyễn Văn Đính, while rental properties continue to be in demand, there has also been a notable rise in the number of foreigners looking to purchase houses.

The demand for homeownership is especially pronounced among expatriates and skilled foreign professionals who intend to live in Việt Nam over the longer term.

The demand from foreign workers continues to increase, leading to rising the demand for luxury housing. High-end apartments and residential projects in prime locations closing to business hubs and cultural centres, are especially attractive to this consumer cohort. Foreigners working in Hà Nội often prioritise modern living environments equipped with a range of amenities.

While foreign homeownership in Việt Nam has been relatively low in the past, the new legal framework is already showing signs of boosting this market segment.

Between 2015 and the third quarter of 2023, more than 3,000 foreign nationals purchased property in Việt Nam, with Hà Nội accounting for a significant portion of these transactions.

By the first half of 2024, over 1,000 foreigners had already acquired property in the capital.

in addition, the Hà Nội Department of Construction has approved several new residential projects, adding around 3,000 apartments to the market for foreign buyers, many of which are located in high-end urban areas.

These new developments are selling quickly, with approximately 60 per cent of units in prime locations already sold. Prices for these high-end apartments are also about 10 per cent higher than those available to local buyers, reflecting the strong demand from the foreign community.

The growing demand for property ownership among foreigners is seen as a positive indicator for Hà Nội’s real estate market.

According to Phạm Thị Miên, deputy head of VARS’ Market Research, Consulting and Investment Promotion Department, this trend is expected to continue as more foreign professionals seek to settle in Việt Nam.

The country's need for skilled labour makes it an ideal destination for foreign nationals, who are increasingly interested in owning homes during their time in Việt Nam.

Additionally, Việt Nam’s improving business environment and long-term real estate investment opportunities are contributing to the demand for homeownership.

Many foreign nationals are motivated to invest in property as a stable investment in a country with growing economic potential. The increasing appeal of real estate in Việt Nam, coupled with high property prices and stricter regulations abroad, makes homeownership in Hà Nội particularly attractive.

However, there are challenges for developers. To meet the growing demand, investors will need to tailor projects to specific foreign customer groups based on nationality, financial capacity and personal preferences.

In doing so, they can ensure the success of these high-end residential developments and contribute to the ongoing growth of Hà Nội’s real estate market. — VNS