DUBLIN–(BUSINESS WIRE)–The “Commercial Real Estate Market in Vietnam – Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)” report has been added to ResearchAndMarkets.com’s offering.
The Vietnam Commercial Real Estate market is expected to witness a CAGR of 14.89% during the forecast period of 2021-2026.
In spite of the signs of cyclical moderation in growth, Vietnam’s outlook remains positive. Vietnam’s economy is seeing strong growth, with laws that made foreigners invest in its development further. As a result, there’s been a surge of high-end real estate developments in the country.
The improvement in infrastructure supporting the tourism industry, which has always been one of the prioritized investment areas by Vietnam, has catapulted the rise of many tourist cities in recent years. Local demand in Vietnam is also rising as Vietnamese entrepreneurs are looking for investments where they can put in their money.
The long-term outlook for the commercial property sector is positive as a result of continuing strong economic conditions in the country, supported by rising consumer spending and strong tourism industry.
In commercial real estate, the hospitality sector in Vietnam is experiencing high growth. By the end of Q3 2019, it is estimated that there were 442 four- and five-star hotels under operation in Vietnam, providing 91,236 keys to the market.
In the office segment, the banking/insurance, manufacturing, and IT sectors are expected to drive demand, with co-working spaces showing particularly notable growth.
In the retail segment, many new retail brands are setting up stores or looking to set up stores in Vietnam, introducing new concepts to the local market which will attract visitors and liked to develop in commercial sector activities.
Key Market Trends
Growth Trend in Vietnamese e-Commerce and Industrial Real Estate
The commercial real estate market in Vietnam is growing at a CAGR rate of 14.89%. Continuing the momentum from 2018, Vietnam welcomed nearly 13 million foreign visitors in the first nine months of 2019, an increase of 10.8% y-o-y. Apart from the hospitality and hotel industry, Vietnam is now one of the fastest-growing e-commerce markets in Southeast Asia. Amid the COVID pandemic, more and more consumers opted to shop online, raising demand for cold storage warehousing for food and other essential goods.
E-commerce needs storage space three times larger than that of traditional logistics activities. As per JLL, Both domestic and foreign investors have targeted healthcare logistics, as they will need more refrigerated warehouses to meet the rising demand for temperature-sensitive products like food, medicine, and, COVID-19 vaccines. In the retail sector, as per CBRE Vietnam, Ho Chi Minh city is expected to have over 200,000 sqm of new retail spaces until 2023, both in CBD and non-CBD areas. Categories such as F&B, health & beauty will continue to expand at retail podiums.
Vietnam’s industrial property market has performed well and is expected to grow. While Samsung Electronics has a massive factory covering 67,088 sq.m. in Ho Chi Minh City, Apple Inc. has plans for further expansions in the country. As Vietnam is set to become the new manufacturing hub in Asia, the industrial property market has outperformed other commercial property sectors. In the first three quarters of 2020, almost 47% of all foreign direct investments (FDI) were allocated to the manufacturing industry.
Workplace Real Estate Continues to Grow in Vietnam
In 2020 a work from home experiment took place globally and showed that by leveraging technology, businesses can continue to operate effectively. But for many, the lack of face-to-face interaction has put pressure on teams, and whilst a number of our clients expect to adopt flexible working practices in the future, for the majority, this will include the office remaining the central point for business activities. Co-working spaces are one segment in office real estate that is showing growth in Vietnam.
During the challenging period of the first half of 2021, Toong, one of the first and largest co-working space chains in Vietnam, put new projects into operation. In March 2021, the first Toong station in a strategic cooperation project with Wink Hotels was also officially launched at 75 Nguyen Binh Khiem, District 1. According to Cushman & Wakefield, the flexible Vietnamese office space industry in 2020 occupied approximately 160,000 sq.m of space in A and B grade buildings across the two office hub cities, less than four percent of total A and B grade inventory. In 2020 and 2021, the number of co-working and serviced offices in Vietnam is set to break through that amount.
Competitive Landscape
The Commercial Real Estate in Vietnam has a medium level of market share concentration. International investors are also attracted to the Vietnamese market and are looking to invest in almost all segments from office to retail and high-end hotels. Developers are active in creating new hospitality products for sales, most notable of which are coastal shophouse/shop villa in Phu Quoc and Ha Long.
In hospitality real estate there is a need for developers in Vietnam to diversify its market by paying attention to the non-traditional market and bringing in professionals to manage their property. There is rising demand for quality office and retail stock in centralized places, with the Hanoi CBD in focus. The strength of the manufacturing and tourism sector will keep demand buoyant for retail, office and industrial units.
Companies Profiled
For more information about this report visit https://www.researchandmarkets.com/r/l1ftxv
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
HANOI, VIETNAM – Media OutReach Newswire - 22 November 2024 - By capitalizing on its…
HANGZHOU, CHINA - Media OutReach Newswire - 22 November 2024 - As the 2024 World…
BEIJING, CHINA - Media OutReach Newswire - 22 November 2024 - The 2024 Beijing Changping…
Tickets Now Available via Urbtix HONG KONG SAR - Media OutReach Newswire - 22 November…
iShopChangi is throwing a year-end bash like no other! From now till December, get ready…
HONG KONG SAR - Media OutReach Newswire - 22 November 2024 - As a leading…
