What is the average rent in Laos?

Authored by the expert who managed and guided the team behind the Laos Property Pack

Everything you need to know before buying real estate is included in our Laos Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Laos. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Laos real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Vientiane, Luang Prabang, and Pakse. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average rents in Laos by property type?

Rental costs in Laos show clear variations between property types and quality levels as of September 2025.

In Vientiane's city center, one-bedroom apartments average $622 monthly, while similar properties outside the center rent for $332-$470. Basic or substandard apartments nationwide range from $200-$600 monthly, appealing to budget-conscious tenants and students.

Modern apartments and condominiums in Vientiane command premium prices, with one-bedroom units renting for $850-$1,400 monthly. Luxury condominiums exceed $1,500 monthly, targeting expatriate professionals and diplomatic staff. Houses show wider price ranges, with older properties renting for $500-$800 monthly, while quality three to four-bedroom houses range from $1,000-$2,000 monthly.

High-end and luxury houses in prime Vientiane locations start at $2,000 monthly and can reach significantly higher for premium features and locations. These properties typically serve embassy staff, international business executives, and affluent local professionals.

It's something we develop in our Laos property pack.

How do rents vary between Vientiane and secondary cities?

Vientiane maintains the highest rental rates in Laos due to its status as the capital and economic center.

Secondary cities including Luang Prabang, Pakse, and Savannakhet typically offer rents 30-50% lower than Vientiane. These markets have fewer luxury options but provide substantial affordability for both local and international tenants. Luang Prabang, despite its UNESCO World Heritage status and tourism appeal, shows one-bedroom apartments averaging $350 monthly.

Rural and suburban areas present the most affordable options, with rental prices sometimes falling below $200 per square meter for purchase and proportionally low rental rates. These areas attract young families, rural migrants moving to urban centers, and budget-conscious individuals seeking basic accommodation.

Vientiane's premium stems from superior infrastructure, international business presence, diplomatic missions, and educational institutions. The capital offers the best amenities, healthcare facilities, and international connectivity, justifying higher rental costs for quality-conscious tenants.

What is the typical rent per square meter across different property types?

Property Type	Location	Price per m²
Condominiums	Vientiane	$10-$15/m²
Central Business District	Vientiane CBD	$14-$18/m²
Suburban Houses	Vientiane Suburbs	$8-$12/m²
Older Apartments	Vientiane Citywide	$6-$10/m²
Secondary City Properties	Luang Prabang/Pakse	$4-$8/m²
Rural Properties	Outside Major Cities	$1-$3/m²
Luxury Properties	Prime Vientiane	$18-$25/m²

What are the average total rental costs including fees and utilities?

Rental costs extend beyond base rent to include utilities, fees, and additional expenses that tenants must factor into their budgets.

Utilities for an 85-square-meter apartment average $85 monthly, while a smaller 60-square-meter unit in Vientiane costs approximately $72 monthly for basic utilities. Internet services add $7.11 monthly, and mobile contracts typically cost $20 monthly. These utility costs remain relatively stable across property types but vary with usage patterns and building efficiency.

Long-term rental contracts often require six to twelve months of upfront payment, creating significant initial financial commitments for tenants. This practice is standard in the Laos rental market and helps landlords secure reliable income streams while protecting against default risk.

Property management fees, building maintenance charges, and security deposits add additional costs that can increase total monthly housing expenses by 15-25% above base rental rates. Tenants should budget for these expenses when calculating affordability and comparing properties across different price ranges.

How do financing and mortgage costs influence rental yields for investors?

Financing options in Laos remain limited for foreign investors, with most purchases requiring substantial cash investments.

Regional mortgage rates typically range from 4-5% fixed for five-year terms, though access varies significantly for non-residents. Limited financing availability forces many investors to purchase properties outright, affecting cash-on-cash returns but eliminating interest rate risk and monthly debt service obligations.

Higher interest rates in regional markets may reduce property demand, potentially pushing landlords to increase rents to maintain desired yields. However, Laos rental yields of 5-10% gross in Vientiane remain attractive compared to regional alternatives, even accounting for financing constraints.

Investors focusing on cash purchases can achieve stronger net yields by avoiding interest expenses, though this requires larger initial capital commitments. The limited financing landscape actually benefits cash-rich investors by reducing competition from leveraged buyers.

What are the most attractive rental options for short-term versus long-term tenants?

Short-term and long-term rental markets in Laos serve distinct tenant profiles with different preferences and requirements.

Short-term rentals benefit from booming tourism, particularly in heritage cities like Luang Prabang and cultural sites near Vientiane. These properties generate higher per-night earnings but require active management and face higher vacancy periods between bookings. Tourist-focused properties near transport hubs and attractions command premium rates during peak seasons.

Long-term rentals attract expatriate professionals, diplomatic staff, students, and local professionals seeking stable housing. These tenants prefer modern condominiums and houses in central Vientiane, large suburban properties, and new developments with international amenities. Six to twelve-month contracts provide stable income streams with lower management requirements.

Serviced apartments and furnished properties appeal to both markets, offering flexibility for short-term stays while attracting long-term tenants who prefer move-in-ready accommodations. Well-located city apartments near business districts and educational institutions perform best across both rental strategies.

It's something we develop in our Laos property pack.

Can you provide specific examples of rental prices across different property types?

Real-world rental examples illustrate the diversity of options and pricing across Laos's property market as of September 2025.

A one-bedroom apartment in Vientiane's city center, approximately 50 square meters, rents for $622 monthly, attracting expatriate couples and single professionals. Modern two-bedroom apartments of 80 square meters command $1,000 monthly, appealing to expatriate families and senior professionals requiring additional space.

Suburban three-bedroom houses of 120 square meters rent for approximately $1,200 monthly, serving local professionals, diplomatic families, and small business owners. Central business district condominiums of 70 square meters achieve $980 monthly, targeting investors and high-income professionals seeking prestige locations.

In Luang Prabang, one-bedroom apartments of 45 square meters rent for $350 monthly, attracting tourists, students, and budget-conscious professionals. Rural properties outside Vientiane, including four-bedroom houses of 200 square meters, rent for $400 monthly, serving migrant families and those seeking affordable larger spaces.

What are the typical renter profiles in Laos?

1. **Expatriate Professionals** - NGO workers, embassy staff, multinational company employees, and business owners concentrated in Vientiane and Special Economic Zones2. **International Students** - Clustered near universities and English-language schools in urban centers, seeking affordable accommodations with basic amenities3. **Local Professionals** - Young families and upwardly mobile rural migrants increasingly moving to urban areas for career opportunities4. **Tourism Workers** - Short-term rental demand in heritage cities like Luang Prabang, seasonal workers, and hospitality industry employees5. **Diplomatic Personnel** - Embassy staff and international organization workers requiring high-quality housing with security features and international standards

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Laos versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the current vacancy rates across property types and locations?

Vacancy rates in Laos reflect the impact of recent construction booms and changing market dynamics.

Vientiane shows estimated vacancy rates around 21% and rising as new projects reach completion in 2024-2025. This increase stems from significant new supply entering the market faster than tenant absorption, particularly affecting mid-range and luxury segments. Developers rushed to complete projects during the construction boom, creating temporary oversupply conditions.

Secondary cities maintain lower vacancy rates due to limited new construction and steady local demand. Luang Prabang benefits from consistent tourism demand, while industrial cities like Pakse see stable occupancy from manufacturing and logistics workers.

Rural areas experience minimal vacancy issues due to limited rental stock and local demand patterns. Most rural properties serve owner-occupants rather than rental markets, creating different supply-demand dynamics than urban centers.

Property types showing highest vacancy include luxury condominiums and premium apartments where supply growth exceeded demand from target tenant demographics. Budget and mid-range properties maintain better occupancy rates due to broader tenant appeal.

Which property types and locations represent the smartest investment choices currently?

Investment opportunities in Laos favor specific property types and locations based on current market conditions and future prospects.

Central Vientiane condominiums and apartments offer the most stable rental markets with gross yields of 5-10%. These properties benefit from consistent demand from expatriates, professionals, and students while maintaining relatively stable occupancy rates despite broader market challenges.

Luxury properties and Special Economic Zone developments show strong potential due to expatriate demand and business professional requirements. These segments command above-regional-average yields with moderately rising rents, though they require higher initial investments and target specific tenant demographics.

Rural and semi-urban land and house investments present the lowest entry prices with rising demand from young families and urban migrants. While yields may be lower initially, these areas offer significant capital appreciation potential as urbanization continues.

Properties near educational institutions, business districts, and transportation hubs consistently outperform isolated locations. Well-maintained modern properties with international amenities attract premium tenants willing to pay above-average rents for quality and convenience.

What is the current breakdown of rental yields and recent trends?

Rental yields in Laos remain attractive compared to regional markets, though recent trends show some moderation from peak levels.

Vientiane properties currently achieve 5-10% gross rental yields for most apartments and condominiums as of September 2025. These yields exceed regional comparisons including Hanoi at approximately 4.2% and Bangkok at 4.8%, while falling below markets like Tbilisi at 8.2%. The Laos market provides competitive returns for investors seeking emerging market exposure.

Five years ago in 2020, yields peaked at 10-12% due to lower property acquisition costs and limited supply. Market conditions have moderated in 2023-2025 as construction booms increased available inventory and property prices rose with economic development. Despite this moderation, yields remain attractive for patient investors.

Current yield compression reflects natural market maturation as Laos develops economically and attracts more investment capital. Quality properties in prime locations continue achieving higher yields, while secondary locations and older properties face greater pressure from new supply competition.

It's something we develop in our Laos property pack.

What are the forecasts for rents and yields over the next 1, 5, and 10 years?

Rental market forecasts for Laos reflect ongoing urbanization trends and economic development patterns expected through 2035.

Over the next year through 2026, moderate rent growth of 3-7% annually is expected in Vientiane, with yields remaining stable despite potential further moderation from new supply. Current construction projects will continue affecting vacancy rates before market absorption improves conditions.

Five-year projections through 2030 anticipate continued urbanization driving demand in Vientiane and key secondary cities. Yield compression appears likely but yields should remain attractive at 5-8% compared to regional alternatives. Growing local and expatriate populations will support steady rent increases and property value appreciation.

Ten-year forecasts through 2035 expect rapid urbanization to continue as Laos develops economically. Growing populations, improved infrastructure, and increased international business presence should drive steady rent increases and property values. However, yields may moderate to 4-6% as the market matures and approaches regional norms.

Regional comparisons suggest Laos will maintain competitive yields as economic development creates sustained rental demand while property values appreciate. Early investors in quality locations should benefit from both rental income and capital appreciation over the forecast period.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Move to Asia - Cost of Living in Laos
2. BambooRoutes - Vientiane Price Forecasts
3. Move to Asia - Rent Apartment in Laos
4. Global Property Guide - Laos Price History
5. Exiap - Cost of Living in Laos
6. BDEEX - Vientiane Prices
7. BambooRoutes - Vientiane Real Estate Trends
8. Global Property Guide - Laos Rent Yields
9. BambooRoutes - Laos Property Investment
10. Numbeo - Cost of Living in Laos