Authored by the expert who managed and guided the team behind the Laos Property Pack
Yes, the analysis of Vientiane's property market is included in our pack
If you're looking at rental property investment in Vientiane, this article covers current yields, vacancy rates, and what actually eats into your returns.
We constantly update this blog post with the latest data so you're always working with fresh numbers.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Vientiane.
Insights
- Gross rental yields in Vientiane average around 8.5% in early 2026, notably higher than most Southeast Asian capitals where yields typically hover between 4% and 6%.
- The gap between gross and net yields in Vientiane is roughly 2.5 percentage points, with rental income tax alone accounting for about 10% of what landlords collect.
- Value neighborhoods like Dong Dok near the National University can deliver gross yields above 10%, while prime central districts like Sisattanak often compress below 7%.
- Studios and one-bedroom apartments consistently outperform larger units on yield, typically reaching 8.5% to 11% gross compared to 5.5% to 8% for villas.
- A correctly priced mid-market rental unit in Vientiane sits empty for roughly one month per year, translating to about a 9% vacancy rate.
- Vientiane's monthly rent-to-price ratio of approximately 0.71% means investors can recoup their purchase price through rent in about 12 years.
- Rising electricity and water tariffs through 2026 are quietly increasing operating costs for landlords who include utilities in their rent.
- Property management fees in Vientiane typically run between 8% and 12% of collected rent, with an additional one-month fee for tenant placement.
- The Friendship Bridge corridor in Hadxayfong district benefits from cross-border logistics demand, supporting both rental rates and occupancy.
- Investors targeting "good" yields in Vientiane should aim for at least 8% gross, while anything above 9.5% is considered very strong.
What are the rental yields in Vientiane as of 2026?
What's the average gross rental yield in Vientiane as of 2026?
As of early 2026, the average gross rental yield in Vientiane sits at approximately 8.5%, which is strong by regional standards.
Most residential properties in Vientiane fall within a gross yield range of 7% to 10%, depending on location and whether the property is optimized for renting.
Compared to other Southeast Asian capitals, Vientiane's gross yields are notably higher, as cities like Bangkok and Ho Chi Minh City often hover in the 4% to 6% range.
The most important factor currently influencing gross yields in Vientiane is the gap between purchase prices and achievable rents, where value neighborhoods still offer low entry prices while rents remain steady.
What's the average net rental yield in Vientiane as of 2026?
As of early 2026, the average net rental yield in Vientiane comes in at approximately 6.0% after typical landlord expenses.
The typical difference between gross and net yields in Vientiane is around 2.5 percentage points, reflecting real ownership and operating costs.
The expense that most significantly reduces gross yield in Vientiane is rental income tax, which runs at approximately 10% of collected rent.
Most standard investment properties deliver net yields in the 5% to 7% range, varying based on how well landlords control maintenance, vacancy, and management fees.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Vientiane.
We made this infographic to show you how property prices in Laos compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Vientiane in 2026?
In Vientiane in 2026, a gross rental yield of around 8% or higher is generally considered "good" by local investors.
The threshold separating average from high-performing properties is approximately 9.5% gross, which usually requires buying in value neighborhoods or targeting smaller units.
How much do yields vary by neighborhood in Vientiane as of 2026?
As of early 2026, gross rental yields in Vientiane can vary by as much as 5 percentage points between neighborhoods, ranging from roughly 6% in prime areas to 11% in value zones.
The highest-yield neighborhoods are value areas with steady worker or student demand, such as Dong Dok in Xaythany, airport-side pockets in Sikhottabong, and the Friendship Bridge corridor in Hadxayfong.
The lowest-yield neighborhoods are prime central districts like Sisattanak, Chanthabouly, and Mekong river-adjacent pockets where lifestyle premiums push purchase prices up faster than rents.
Yields vary so much because purchase prices move more dramatically than rents when shifting from value zones to prime locations.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Vientiane.
How much do yields vary by property type in Vientiane as of 2026?
As of early 2026, gross yields across property types in Vientiane range from about 5.5% for high-end villas to around 11% for well-located studios and one-bedroom apartments.
The highest-yield property type is the studio or one-bedroom apartment, typically achieving 8.5% to 11% because these units are easier to keep occupied and purchase prices are efficient relative to rent.
The lowest-yield property type is the expat-grade villa, usually reaching only 5.5% to 8% because high purchase prices and longer vacancy periods compress returns.
Yields differ between property types because smaller units attract a broader renter pool, while larger properties tie up more capital and take longer to lease.
By the way, you might want to read the following:
What's the typical vacancy rate in Vientiane as of 2026?
As of early 2026, the average residential vacancy rate in Vientiane is approximately 9%, or about one month of vacancy per year for correctly priced mid-market units.
Vacancy rates range from 5% to 8% for well-priced studios in renter hubs, up to 12% to 18% for large villas or overpriced premium stock.
The main factor driving vacancy in Vientiane is how well a property matches what renters can afford and want, since expat demand is selective and local demand is price-sensitive.
Vientiane's vacancy rate is relatively moderate because the capital concentrates most formal employment, international organizations, and the expat community.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Vientiane.
What's the rent-to-price ratio in Vientiane as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Vientiane is approximately 0.71%, meaning monthly rent represents about 0.71% of purchase price.
For buy-to-let investors in Vientiane, a monthly ratio above 0.7% is generally favorable, translating to an annual gross yield of around 8.5% when multiplied by 12.
Compared to similar Southeast Asian cities, Vientiane's ratio is notably higher, as many regional capitals sit in the 0.3% to 0.5% range, meaning Vientiane investors recoup their purchase price faster, typically in about 12 years.
We have made this infographic to give you a quick and clear snapshot of the property market in Laos. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Vientiane give the best yields as of 2026?
Where are the highest-yield areas in Vientiane as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Vientiane are Dong Dok in Xaythany, the Friendship Bridge areas in Hadxayfong, and airport-side pockets in Sikhottabong.
In these areas, gross yields typically range from 9% to 11%, significantly above the citywide average of 8.5%.
What these high-yield areas share is that purchase prices remain affordable while rental demand stays steady thanks to nearby employment nodes, universities, or logistics activity.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Vientiane.
Where are the lowest-yield areas in Vientiane as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Vientiane are Sisattanak with its expat-preferred serviced areas, Chanthabouly in the civic core, and prime Mekong river-adjacent pockets.
In these areas, gross yields typically compress to between 6% and 8%, below the citywide average.
Yields are compressed in these prime areas because purchase prices carry significant lifestyle premiums that push values up faster than rents can follow.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Vientiane.
Which areas have the lowest vacancy in Vientiane as of 2026?
As of early 2026, the top three neighborhoods with the lowest vacancy rates in Vientiane are central Sisattanak, Chanthabouly, and Xaysettha corridors where international schools and organizations cluster.
In these areas, vacancy rates typically sit in the 5% to 7% range, notably tighter than the citywide average of around 9%.
The main demand driver keeping vacancy low is the concentration of expat-friendly amenities, international organizations, and employment hubs.
The trade-off investors face in these low-vacancy areas is that higher purchase prices compress gross yields, so you get reliable occupancy but smaller returns on capital.
Which areas have the most renter demand in Vientiane right now?
The top three neighborhoods with the strongest renter demand in Vientiane are Sisattanak for expat and NGO convenience, Dong Dok in Xaythany for university and employment access, and Hadxayfong for logistics and cross-border worker demand.
In Sisattanak, demand comes mainly from expats and professionals seeking serviced apartments, while in Dong Dok and Hadxayfong, renters are students, local workers, and business travelers.
In these high-demand neighborhoods, correctly priced studios and one-bedrooms typically get filled within two to four weeks.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Vientiane.
Which upcoming projects could boost rents and rental yields in Vientiane as of 2026?
As of early 2026, the top projects expected to boost rents in Vientiane are the Vientiane Logistics Park and Thanaleng dry-port ecosystem, continued Special Economic Zone activity, and transport connectivity improvements.
The neighborhoods most likely to benefit are Hadxayfong along the Friendship Bridge corridor, Xaysettha for SEZ-adjacent development, and the broader Thanaleng area.
Once these projects reach full operation, investors might realistically expect rent increases of 5% to 15% in the most directly affected pockets.
You'll find our latest property market analysis about Vientiane here.
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What property type should I buy for renting in Vientiane as of 2026?
Between studios and larger units in Vientiane, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments in Vientiane outperform larger units in both yield and occupancy.
Studios typically achieve gross yields of 8.5% to 11% (roughly 450 to 700 USD or 415 to 645 EUR monthly on a 50,000 to 80,000 USD purchase), while larger apartments deliver 7% to 9%.
Studios outperform because the renter pool is broader, including single professionals, couples, and shorter-term expats, which keeps occupancy high.
One scenario where larger units might be better is when targeting long-term family tenants near international schools, who stay longer and reduce turnover costs.
What property types are in most demand in Vientiane as of 2026?
As of early 2026, the most in-demand property type in Vientiane is the serviced or semi-serviced one to two bedroom apartment.
The top three property types by demand are serviced apartments in central districts, clean modern condos, and simple family houses near job corridors.
The primary trend driving this pattern is the concentration of international organizations, NGOs, and businesses in the capital, combined with a growing local professional class.
One property type underperforming in demand is the oversized luxury villa, which faces a shallow tenant pool and longer marketing times.
What unit size has the best yield per m² in Vientiane as of 2026?
As of early 2026, the unit size delivering the best gross yield per square meter in Vientiane is between 25 and 45 square meters, covering studios and compact one-bedrooms.
For this optimal size, gross yield per square meter works out to roughly 10 to 15 USD (around 9 to 14 EUR or 220,000 to 330,000 LAK) monthly rent per square meter.
Smaller or larger units have lower yield per square meter because renters pay for function and location rather than every extra square meter.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Vientiane.
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 costs cut my net yield in Vientiane as of 2026?
What are typical property taxes and recurring local fees in Vientiane as of 2026?
As of early 2026, annual property tax for a typical rental apartment in Vientiane is relatively modest, with land tax often amounting to 50 to 200 USD (roughly 45 to 185 EUR or 1,100,000 to 4,400,000 LAK) per year.
Other recurring fees include rental income tax at approximately 10% of collected rent, which for a 500 USD monthly rental equals about 600 USD (550 EUR) annually.
Combined, these taxes and fees typically represent around 12% to 15% of gross rental income.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Vientiane.
What insurance, maintenance, and annual repair costs should landlords budget in Vientiane right now?
Annual landlord insurance in Vientiane typically runs around 50 to 150 USD (45 to 140 EUR or 1,100,000 to 3,300,000 LAK) per year.
The recommended annual maintenance budget is approximately 1% of property value, translating to roughly 700 USD (645 EUR) for a 70,000 USD property.
The repair expense that most commonly catches landlords off guard in Vientiane is air conditioning maintenance and replacement, as the climate wears units down faster than expected.
In total, landlords should budget around 750 to 1,000 USD (690 to 920 EUR) annually for combined insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Vientiane right now?
For long-term rentals in Vientiane, tenants typically pay electricity and water if they have separate meters, while landlords cover utilities in serviced apartments with bundled services.
When landlords cover utilities, monthly costs run from 40 to 120 USD (37 to 110 EUR) for studios, and 120 to 300 USD (110 to 275 EUR) for houses.
What does full-service property management cost, including leasing, in Vientiane as of 2026?
As of early 2026, full-service property management in Vientiane costs between 8% and 12% of collected monthly rent, which for a 600 USD rental equals roughly 48 to 72 USD (44 to 66 EUR) per month.
The typical tenant-placement fee is approximately one month of rent, so for that 600 USD rental you would pay around 600 USD (550 EUR) each time a new tenant is placed.
What's a realistic vacancy buffer in Vientiane as of 2026?
As of early 2026, landlords in Vientiane should set aside approximately 8% to 10% of annual rental income as a vacancy buffer, with higher-end villas needing closer to 12% to 15%.
This translates to roughly four to five weeks of vacancy per year for a typical correctly priced mid-market unit.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Vientiane, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| IMF 2025 Article IV Mission | The IMF is a top-tier global institution for macroeconomic conditions affecting rents and financing. | We used it to anchor the early 2026 macro backdrop. We then translated that into rent, demand, and vacancy implications for Vientiane. |
| IMF 2025 Concluding Statement | It's the IMF's most up-to-date view on growth drivers like tourism and FDI. | We used it to justify why renter demand concentrates near job nodes. We also supported vacancy and yield thresholds. |
| World Bank Lao Economic Monitor | The World Bank is a gold-standard source for economic conditions affecting housing markets. | We used it to cross-check macro direction entering 2026. We mapped that to rent resilience across neighborhoods. |
| World Bank Economic Updates Hub | This is the official library of World Bank monitoring reports for Laos. | We used it to validate we're not relying on one publication. We sanity-checked longer-run themes shaping micro-markets. |
| PwC Tax Summaries (Lao PDR) | PwC's summaries are widely used and regularly reviewed for landlord cost assumptions. | We used it to frame the tax environment hitting net yield. We applied relevant tax items to landlord budgets. |
| PwC (Other taxes incl. land tax) | It's a clear description of land and property taxes from a major professional services firm. | We used it to identify recurring taxes and how they're assessed. We translated that into annual net yield impact. |
| PwC (Income determination) | It's one of the most straightforward references for rental income taxation. | We used it to model rental income tax for net-yield estimates. We avoided guessing on transfer taxation rules. |
| Global Property Guide | It's a long-running international real estate data publisher with transparent methodology. | We used it as a secondary cross-check on tax interpretation. We kept our budgeting aligned with global conventions. |
| RentsBuy (Vientiane listings) | It's a major Laos-focused portal showing live asking rents and prices with location tags. | We used it as one of our asking market datasets. We computed gross yields by dividing annual rent by asking price. |
| RentsBuy (Lao Center pricing) | It provides a clear price-per-square-meter reference tied to a named project. | We used it to anchor prime condo prices. We compared against rent examples to triangulate yields. |
| RentsBuy (Crowne Plaza apartments) | It's a concrete rent quote with unit mix and recognizable landmark. | We used it as a mid-market rent datapoint. We paired it with purchase prices to estimate gross yields. |
| AsiaVillas (Vientiane rentals) | It's an established regional portal aggregating listings with standardized fields. | We used it to cross-check RentsBuy rents. We sanity-checked rent ranges by district and unit type. |
| ESMAP Electricity Pricing | ESMAP is part of the World Bank ecosystem with methodology-heavy utility pricing work. | We used it to understand residential electricity pricing mechanics. We turned that into budgeting rules of thumb. |
| Laotian Times (Water tariffs) | It's a major English-language Lao news outlet reporting on official tariff approvals. | We used it to reflect rising water costs into 2026. We baked that into utilities budgeting. |
| Nation Thailand (Electricity) | It's a mainstream regional outlet providing concrete tariff numbers. | We used it as secondary confirmation of rising electricity costs. We factored utilities into rent competitiveness. |
| McDonald Patafta & Associates | It's a recognized law firm explaining how leases work under Lao contract rules. | We used it to ground leasing discussions in local practice. We translated it into friction costs for landlords. |
| Vientiane Logistics Park | It's the project's own site, the most direct source for location claims. | We used it to support job-node logic for nearby rental demand. We connected it to benefiting districts. |
| Baselane (Management fees) | It's a well-documented property management resource with clear fee breakdowns. | We used it to establish baseline management and leasing fee ranges. We applied those conservatively to Vientiane. |
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