A view of HCM City. Việt Nam is an attractive real estate market in Southeast Asia. — VNA/VNS Photo

HCM CITY — JLL, a renowned market research company, anticipates a revitalised Vietnamese real estate sector in 2025, fueled by positive investor sentiment, lower borrowing costs, and increased transaction activity across key asset categories, as highlighted in its latest report, "Vietnam Property Market Outlook 2025: A New Chapter in Economic Growth."

Specifically, implemented FDI reached US$25.4 billion in 2024, increasing by 9.4 per cent year-on-year, with major infrastructure investments accelerating the expansion of real estate hotspots across the country.

“As Việt Nam'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, JLL Vietnam.

“These factors are reinforcing Việt Nam’s position as an attractive real estate market in Southeast Asia,” she added.

As Việt Nam's real estate landscape enters a new phase of economic development, JLL holds a positive outlook for investment opportunities in 2025, citing increased deal flows, robust fundamentals, and ongoing regulatory enhancements as key growth drivers.

“Việt Nam’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, JLL Thailand, Indonesia, Philippines & Vietnam.

“The easing of borrowing costs and a notable boost in investor confidence are key drivers behind this positive trend. Việt Nam’s fundamental strengths – its young, dynamic workforce, developing infrastructure, and investor-friendly policies – continue to make it an attractive destination for real estate investment across a range of sectors. As market conditions continue to improve, we expect to see a surge in transactions and development projects, reinforcing Việt Nam’s position as a prime market for real estate opportunities in Southeast Asia.”

In its analysis, JLL predicts trends in specific segments.

Notably, Việt Nam's office leasing market has shown resilient activity, with net absorption surpassing 43,000 square metres in 2024, highlighting a steady rebound in corporate demand. A growing emphasis on sustainability and well-being is shaping tenant preferences, with green-certified office buildings witnessing heightened leasing interest.

Will Tran, head of office leasing advisory at JLL Vietnam, observed: "Contemporary occupiers are increasingly gravitating towards state-of-the-art, high-caliber workspaces that not only bolster productivity but also champion sustainability. This shift in priorities is fueling an upswing in demand for premium office environments."

This trend is particularly pronounced in HCM City's prime Central Business District, where Grade A and Grade A+ office spaces have witnessed a year-over-year increase of 1.3 per cent in asking rents.

After record-low supply levels in 2024, Việt Nam’s residential sector is set for a resurgence, fueled by new regulatory amendments that are improving transparency and project approval processes. Developers and investors have historically focused on Hà Nội, HCM City and increasingly so on satellite areas, where demand is expected to pick up.

JLL also highlighted the industrial segment, affirming Việt Nam as a top choice for manufacturing in Southeast Asia due to its strategic position and the China+1 strategy. The country is benefitting from changing regulations, global shifts, and substantial infrastructure development, attracting investments in industrial and logistics ventures.

“Việt Nam's logistics and industrial market is evolving rapidly, with record implemented FDI of $25.4 billion in 2024. Manufacturing and real estate lead FDI receivers,” said Vân Nguyễn, head of transactions, Northern Vietnam.

“The sector expands beyond traditional hubs, driven by infrastructure improvements and a shift towards high-tech, eco-friendly developments, reflecting Việt Nam's rising importance in the global supply chain,” she said. — VNS