Market Size of Vietnam Real Estate & Mortgage Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 47.59 Billion |
| Market Size (2029) | USD 87.46 Billion |
| CAGR (2024 - 2029) | > 12.94 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Real Estate & Mortgage Market Analysis
The Vietnam Real Estate & Mortgage Market size is estimated at USD 47.59 billion in 2024, and is expected to reach USD 87.46 billion by 2029, growing at a CAGR of greater than 12.94% during the forecast period (2024-2029).
The COVID-19 pandemic significantly impacted the real estate and mortgage market in Vietnam. The real estate market somewhat stagnated even before the COVID-19 outbreak. In the last two years, the situation turned worse. Due to the pandemic, enterprises were under severe stress to keep their business running. Meanwhile, the government identified public investment as a key solution to boost growth. A better infrastructure system, therefore, could also be welcoming news for the real estate market for further development over the coming years.
In commercial real estate, the hospitality sector in Vietnam is experiencing high growth. The domestic hospitality market is expected to recover strongly with the gradual resumption of domestic and international tourism. In 2021, 32 hotels with 11,993 rooms were launched. A further 27 schemes and 18,303 keys were completed in 2022, while 26 hotels with 6,859 keys have been earmarked for 2023, and 38 projects and 14,360 rooms are already on the books for 2024 and beyond.
In the residential segment, the government is supporting affordable housing for the low-income group, which is anticipated to promote the residential real estate business in the nation. The Tecco Town project in Binh Tan District costs about VND 24 million (USD 1,050) per square meter, and the East Gate in Thu Duc City costs about VND 27 million (USD 1,180) per square meter.
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 to attract visitors and develop commercial sector activities.
Another key factor to support the market includes the new legal mechanisms, including recent regulations to issue land use rights certificates for condotel and the Ministry of Natural Resources and Environment (MARD) easing regulations for the sale of land plots in suburban areas of Hanoi and Ho Chi Minh City.
Growth in urbanization and population in Vietnam over the coming years is expected to drive the residential and commercial sectors in the country, which, in turn, is expected to propel the demand for real estate over the coming years.
