|Study Period:||2016 - 2026|
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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.
Scope of the Report
The report provides key Insights into the Vietnam Commercial Real Estate market. It includes technological developments, trends, initiatives taken by the government in this sector. The report sheds a light on the trends in the market like factors driving the market, restraints to the market growth and opportunities going forward. Additionally, the competitive landscape of the commercial real estate market is depicted through the profiles of key players active.
|By Key Cities|
|Ho Chi Minh City|
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.
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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 coworking and serviced offices in Vietnam is set to break through that amount.
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 is 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.
May 25, 2020 - According to Hanoitimes, Hanoi's authorities plan to build a series of sports – cultural centers, square, hotel, and shopping malls around the My Dinh National Stadium in Nam Tu Liem district with the target of transforming the district into a modernized urban area with a focus on services, sports, entertainment, and commerce.
January 18, 2021 - Foxconn gets the green light for the USD 270 million factories in Vietnam. Foxconn is set to build a new factory to produce tablets and computers in Vietnam, which could be part of Apple's plan to widen its iPad and MacBook production lines outside of China. Set to be located in the northern province of Bac Giang, the Vietnamese government said, it is expected the facility will produce eight million units of products per year,
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
4.3 Government Initatives, Regulatory Aspects for Commercial Real Estate Sector
4.4 Insights on Existing and Upcoming Projects
4.5 Insights on interest rate regime for general economy, and real estate lending
4.6 Insights on rental yields in commercial real estate segment
4.7 Insights on capital market penetration and REIT presence in commercial real estate
4.8 Insights on public-private partnerships in commercial real estate
4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
4.10 Market Dynamics
5. Market Segmentation
5.1 By Type
5.2 By Key Cities
5.2.1 Ho Chi Minh City
5.2.3 Quang Ninh
5.2.4 Da Nang
6. Competitve Landscape
*List Not Exhaustive
6.1 Market Concentration
6.2 Company Profiles
6.2.2 Dat Xanh Group
6.2.3 FLC Group
6.2.5 Nam Long Investment Corporation
6.2.6 Sun Group
6.2.7 Colliers International Vietnam
6.2.8 Savills Vietnam
6.2.9 CBRE Vietnam
6.2.10 JLL Vietnam
6.2.11 Vietnam House
6.2.12 Full House Vietnam
6.2.16 Ivivu and
6.2.18 Others (Vincom JSC, Bitexco, Lilama Land, Phat Dat Real Estate)
7. Future of the Market and Analyst Recommendations
9. About Us
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Frequently Asked Questions
What is the study period of this market?
The Commercial Real Estate Market in Vietnam market is studied from 2016 - 2026.
What is the growth rate of Commercial Real Estate Market in Vietnam?
The Commercial Real Estate Market in Vietnam is growing at a CAGR of 14.89% over the next 5 years.
Who are the key players in Commercial Real Estate Market in Vietnam?
Vin Group, Dat Xanh Group, FLC Group, Toong, Nam Long Investment Corporation are the major companies operating in Commercial Real Estate Market in Vietnam.