Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Everything you need to know before buying real estate is included in our Vietnam Property Pack
Why is Vietnam emerging as a prime destination for property investment in 2025? Is it the impressive economic growth, the vibrant tourism sector, or the competitive pricing compared to other Asian markets? What are the key benefits for investors?
We frequently encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Vietnam's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) With more industrial zones, Vietnam sees a rising demand for worker housing
The growth of industrial zones in Vietnam is booming, especially in the northern regions.
By late 2024, industrial land in Northern Vietnam expanded by 16% compared to the previous year, reaching 16,700 hectares. This includes new industrial parks in places like Hai Duong, Vinh Phuc, Bac Ninh, and Hai Phong, adding nearly 2,000 hectares of leasable area. These areas are becoming hotspots for businesses, drawing in more workers who need housing.
Foreign investments are pouring into Vietnam's manufacturing sector, with over USD 23.5 billion invested in 2023, making up a significant chunk of the country's total FDI. By November 2024, this figure jumped to USD 31.4 billion, with the processing and manufacturing industry leading the charge. This influx of investment is a key driver of the demand for worker housing.
As these industrial zones grow, so do job opportunities, which in turn boosts the need for housing. The industrial sector saw an 8.3% growth in the first nine months of 2024, with manufacturing, processing, and automobile industries achieving a 9.8% growth rate. This trend is expected to continue, making housing a critical need for the growing workforce.
With the industrial boom, industrial land rental prices are projected to rise annually by 4–8% from 2024 to 2027. This increase reflects the growing demand for space as more companies set up shop in these zones, further driving the need for nearby housing.
Sources: Vietnam Briefing, Acclime Vietnam, B-Company
2) With e-commerce growing, Vietnam is seeing increased demand for logistics properties
The boom in e-commerce in Vietnam is driving up the demand for logistics real estate.
In the first half of 2024, Vietnamese consumers spent 143.9 trillion Vietnamese dong online, a jump of 54.91% from the previous year. This surge means more logistics facilities are needed to manage the growing volume of goods being bought and delivered. With more people shopping online, the infrastructure to support this activity is expanding rapidly.
Big names like Shopee and TikTok Shop are seeing their revenues soar, which is pushing the need for more logistics infrastructure. As a result, the supply of ready-built factories and warehouses has increased by 31% year-on-year. This growth is a direct response to the demands of these e-commerce giants, who need efficient systems to keep up with their expanding operations.
Quick delivery is now a top priority for online retailers, which means last-mile delivery services are in high demand. Investors are on the lookout for logistics properties that can ensure fast delivery times, especially those near city centers. In bustling urban areas like Ho Chi Minh City and Hanoi, the scarcity of logistics space is a real challenge, prompting developers to get creative in meeting the needs of the e-commerce sector.
Strategically located logistics properties are becoming hot commodities. With the rise of e-commerce, these properties are essential for ensuring that goods can be delivered quickly and efficiently. The pressure is on to find innovative solutions to the space crunch in key urban areas.
As e-commerce continues to grow, the demand for logistics-related real estate is only set to increase. This trend is reshaping the real estate landscape in Vietnam, with developers and investors keen to capitalize on the opportunities presented by the e-commerce boom.
Sources: Vietnam Briefing, ALS, Vietnam News
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam 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.
3) You’ll see property values rise in areas focused on renewable energy projects
Vietnam is making big moves in renewable energy, especially with solar and wind power.
In 2023, the government rolled out a USD 135 billion energy strategy to boost solar PV capacity, which is shaking up the property market. Areas near these renewable projects are seeing a noticeable rise in property values. For example, Ho Chi Minh City is investing 650 billion VND in rooftop solar systems for public offices, which is expected to bump up property values in those neighborhoods.
People are increasingly drawn to eco-friendly regions, and this trend has been on the rise since 2020 when Vietnam added over 7.4 GW of rooftop solar power to the national grid. This shift in consumer preference is driving demand for properties in sustainable areas.
According to a survey by JLL, 51% of respondents now see sustainability as a key factor in new developments. This growing interest in green living is pushing property values higher in areas with renewable energy projects.
Media reports highlight benefits like reduced energy costs and improved air quality, making these areas more appealing to buyers. The focus on renewable energy is not just about the environment; it's also about creating attractive living spaces.
Sources: Vietnam Briefing, Energy Tracker Asia, JLL
4) With rapid urbanization, Vietnam has a growing demand for residential properties
Vietnam is rapidly urbanizing, drawing more people from rural areas to bustling cities.
In recent years, cities like Hanoi and Ho Chi Minh City have seen a surge in population. By 2030, Ho Chi Minh City is expected to house 11.1 million people. This influx means there's a pressing need for more housing to accommodate these new urban residents.
It's not just about quantity; people are looking for quality homes that suit their lifestyles. As the middle class grows, the demand for diverse and better housing options is on the rise. This shift is reshaping the real estate landscape in Vietnam.
The real estate market is booming, with projections showing it could hit USD 25.26 billion by 2024. This growth is fueled by the need for new housing in major cities and industrial areas, driven by an expanding middle class with higher incomes.
Vietnam's urbanization is not just a trend; it's a transformation. As more people move to cities, the demand for residential properties continues to climb. This creates opportunities for investors and developers to meet the needs of a changing population.
With urban areas expanding, the real estate market is poised for further growth, offering a variety of housing options to cater to different preferences and budgets.
Sources: Urbanet, Asian Development Bank, Mordor Intelligence
5) In Vietnam, you’ll feel more confident investing thanks to the improving legal framework for real estate transactions
Vietnam's real estate market is becoming more attractive to investors thanks to its evolving legal framework.
In 2023 and 2024, Vietnam introduced Law No. 29/2023/QH15 on Real Estate Business, which will take effect on January 1, 2025. This law is designed to make the real estate industry more transparent by enforcing stricter regulations, like deposit caps and enhanced documentation requirements. These changes aim to reduce risks and make transactions clearer for everyone involved.
The shift towards e-government services has also made property transactions smoother and more transparent. This digital transformation helps investors navigate the market more easily, reducing the risk of fraud and misinformation. The Vietnam Real Estate Association is another key player, working to regulate and support the industry, creating a more professional environment for all.
Foreign investors have also benefited from the 2015 Law on Residential Housing, which allows them to own property in Vietnam. This law provides clear guidelines for foreign ownership, making it easier for international investors to enter the market. Real estate consultancy firms like Savills have noted that these legal reforms have increased investor confidence, as seen in the growing interest from international buyers.
These changes are not just on paper; they are actively reshaping the market. Investors are finding it easier to trust the system, thanks to the improved legal framework and the support of industry associations. This is a big deal for anyone looking to invest in Vietnam's real estate market.
With these reforms, Vietnam is positioning itself as a more reliable and attractive destination for real estate investment. The combination of legal clarity, digital advancements, and professional support is making a real difference in how investors view the market.
Sources: Vietnam Briefing, The Investor, Vietnam Briefing, Chambers Practice Guides
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6) Smart city development in Vietnam boosts property values
The rise of smart cities in Vietnam is boosting property values significantly.
Take Ho Chi Minh City, for instance. The city has introduced an Intelligent Operations Center, thanks to funding from the U.S. Trade and Development Agency. This center collects real-time urban data, which improves service delivery and economic growth, leading to higher property prices. It's a game-changer for the local real estate market.
In Hanoi, the Smart City Operation Joint Venture between Bespin Global Vietnam and THT Development in Starlake City is making headlines. This project is all about smart technologies, like autonomous driving and smart energy systems, which are expected to drive up property values. With more people working remotely and focusing on sustainability, there's a growing demand for tech-savvy, energy-efficient apartments, attracting foreign investors.
The Vietnamese government is also playing a big role in this growth. They've eased restrictions on foreign ownership, which is increasing demand for properties in these smart city areas. Plus, large-scale infrastructure projects, like better road networks and airports, are enhancing connectivity, making these areas more appealing and potentially raising property prices.
These developments are not just about technology; they're about creating a lifestyle that appeals to modern buyers. The combination of smart city features and improved infrastructure is transforming the real estate landscape in Vietnam. It's an exciting time for anyone looking to invest in property here.
As smart cities continue to evolve, the potential for property value growth seems promising. The integration of technology and infrastructure improvements is reshaping urban living in Vietnam, making it a hotspot for real estate investment.
Sources: USTDA, PR Newswire, Vietnam Real Estate
7) International buyers are drawn to the country's diverse culture and lifestyle
Vietnam's diverse culture and lifestyle are increasingly attracting international buyers.
In the first nine months of 2024, Vietnam welcomed over 12.7 million international visitors, a significant jump from the previous year. This surge highlights the country's allure, with its unique cultural experiences and stunning landscapes drawing people from all corners of the globe. While most tourists hail from Asia, there's a notable influx from Europe, the Americas, Oceania, and Africa, underscoring Vietnam's broad global appeal.
Major cities like Ho Chi Minh City and Hanoi are becoming hotspots for expatriates, showcasing Vietnam's growing attractiveness. These cities boast neighborhoods with international-quality infrastructure and amenities, catering to a diverse range of nationalities. Areas such as Phu My Hung and Tay Ho are particularly favored by expats, offering a lifestyle akin to that of large Western cities, making Vietnam a compelling choice for those seeking to live and work abroad.
Vietnam's rich cultural heritage, highlighted by vibrant festivals like the Lunar New Year, captures global attention. These events offer a glimpse into the country's unique traditions and cultural practices, sparking interest worldwide. The government's initiatives to promote foreign property ownership, along with the rise in international schools and healthcare facilities, further enhance Vietnam's appeal to international buyers.
Sources: VnExpress, Vietnam Teaching Jobs, Kadence, Vinpearl
8) Vietnam's new urban developments provide great investment opportunities
Vietnam's new urban areas are ripe for investment.
With urbanization on the rise, Vietnam's cities are expanding fast. Back in 2023, over 42.6% of the population lived in urban areas, and this is expected to jump to over 50% by 2030. This means there's a growing need for more homes and better infrastructure, making it a hot spot for investors looking to tap into the urban boom.
The Vietnamese government is all in on this urban growth. They're rolling out plans to boost infrastructure and make the country a hub for international trade. These efforts are part of a broader economic strategy that makes investing in new urban areas even more appealing.
Foreign investors are taking notice, pouring money into Vietnam's real estate market. Big names are investing billions in residential, urban, and industrial projects. This influx of foreign direct investment (FDI) shows strong international confidence in Vietnam's urban development potential.
For those considering property investment, Vietnam's urban areas offer a promising opportunity. The combination of government support, rising urbanization, and foreign investment creates a dynamic environment for growth. Investors can expect a vibrant market with plenty of potential for returns.
Sources: Deloitte, VietnamPlus
We have made this infographic to give you a quick and clear snapshot of the property market in Vietnam. 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.
9) With a growing middle class, Vietnam offers increased purchasing power for real estate
The rise of the middle class in Vietnam is boosting real estate purchasing power.
With incomes climbing, the middle class is set to grow from 13% of the population in 2023 to 26% by 2026. This means more people have extra cash to invest in property. Picture bustling cities like Ho Chi Minh City and Hanoi, where urbanization is on the rise. By 2025, Vietnam's urbanization rate is expected to hit at least 45%, driving up demand for housing in these areas.
In these urban centers, the mid-value housing market is hot. High-rise apartments and condos are in demand because land is scarce. The government is also making it easier to own a home. They've rolled out favorable laws for foreign buyers and initiatives for social housing, opening doors for the middle class.
Mortgage options are more available now, which means more people can afford to buy property. This has led to a noticeable uptick in real estate transactions. The combination of these factors is creating a vibrant property market, especially in urban areas.
Sources: Vietnam Briefing, Vietnam Plus, Mordor Intelligence
10) With favorable policies, the government makes it easy for foreigners to invest in property
The Vietnamese government is making it easier for foreigners to own property, boosting investment in the real estate sector.
With changes to the Law on Housing, effective January 1, 2025, foreigners now have clearer guidelines on property ownership. This move has made the process more transparent and accessible, encouraging more international buyers to consider Vietnam as a viable option for real estate investment.
By simplifying the property purchase process, the government is actively reducing barriers for foreign investors. Clearer regulations and transparent guidelines mean that navigating the Vietnamese property market is now less daunting, making it an attractive option for those looking to invest abroad.
Vietnam's tax policies are also a big draw for foreign property owners. With reduced tax rates and exemptions, investors can potentially see higher returns on their investments. This financial incentive is a significant factor in why many are choosing Vietnam over other countries.
These favorable conditions create a welcoming environment for foreign investors. The combination of clear regulations, simplified processes, and tax incentives makes Vietnam a top choice for those looking to invest in property overseas.
For anyone considering buying property in Vietnam, these government policies are a game-changer. They not only make the process easier but also offer financial benefits that are hard to ignore.
Sources: Draft Decree on Foreign Property Ownership, New Law on Housing, Vietnam's Residential Property Market Analysis
11) Vietnam’s booming tech sector draws young professionals looking for homes
Vietnam's tech industry is booming, making it a hotspot for young professionals seeking new opportunities.
In 2023, Vietnam attracted $36.61 billion in foreign direct investment in the tech sector, marking a significant 32.1% increase from the previous year. This surge in investment is fueling innovation and creating a wealth of job opportunities, drawing in talent from all over.
The government is pushing digital transformation with initiatives like the National Digital Transformation Program, aiming to boost the digital economy and foster a digital society. This effort is enticing tech companies and professionals to set up shop in Vietnam, especially in bustling cities like Ho Chi Minh City and Hanoi.
These cities are expanding their tech hubs and coworking spaces, offering modern amenities that are particularly appealing to young, tech-savvy professionals. The vibrant atmosphere and infrastructure make these areas prime spots for those looking to dive into the tech scene.
There's a noticeable rise in tech-related job postings and university enrollments, reflecting a high demand for tech talent. With over 530,000 IT engineers and about 50,000 new IT graduates entering the workforce each year, Vietnam's tech industry is thriving and driving the need for modern housing in tech-centric areas.
As the tech sector grows, so does the demand for housing that meets the lifestyle needs of these professionals. This trend is reshaping the real estate market, making it an exciting time for potential property buyers in Vietnam.
Sources: JDI Group, Cisco Newsroom, Nucamp Blog
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12) With low property taxes, Vietnam is an appealing choice for real estate investment
Vietnam's real estate market is a hot spot for investors, thanks to its low property taxes.
In Vietnam, the income tax on real estate sales is just 2%, which is a stark contrast to the hefty 35% in Thailand and 30% in Indonesia. This means when you sell a property in Vietnam, you get to keep a lot more of your profits. The Vietnamese government is keen on keeping this tax environment stable, which is a big plus for anyone looking to invest. You won't have to worry about sudden tax hikes, making it easier to plan your investments.
International real estate firms are buzzing about Vietnam's tax-friendly policies. They see it as a major reason why foreign investors are flocking to the country. In Ho Chi Minh City, for example, luxury apartment prices are 40-50% lower than in Bangkok or Singapore. This means you can snag a high-end property at a fraction of the cost, and with low taxes, the potential returns are even more enticing.
Vietnam's approach to property taxes is part of a broader strategy to attract foreign investment. The government has been careful not to impose significant annual increases, which adds a layer of predictability for investors. This kind of stability is rare in the region and makes Vietnam's real estate market stand out.
For those eyeing the Southeast Asian market, Vietnam offers a unique blend of affordability and tax advantages. The combination of competitive pricing and low taxes makes it a compelling choice for investors looking to maximize their returns.
With these factors in play, it's no wonder that Vietnam is becoming a go-to destination for real estate investment. The country's commitment to maintaining a favorable tax environment is a key reason why it's on the radar of savvy investors worldwide.
Sources: Vietnam real estate prices increase faster than the US, Australia..., Top 5 Reasons to Invest in Vietnam Real Estate in 2024-2025
13) With the government investing in infrastructure, property values are on the rise
Infrastructure development by the government significantly boosts property values.
When the government invests in roads, railways, and transport systems, it makes areas more accessible, which in turn increases demand for properties. This demand often leads to higher property prices. Take Vietnam, for example, where billions are being spent on infrastructure projects like highways and bridges, especially in bustling cities like Ho Chi Minh City. These projects not only improve transportation but also attract businesses and investors, giving the local economy a solid boost.
As a result, property values in these well-connected areas tend to rise because more people want to live near these conveniences. Improved infrastructure also attracts foreign direct investment (FDI). In 2023, Vietnam saw a notable increase in FDI, particularly in regions with enhanced facilities. This influx of investment often leads to more commercial and residential developments, which can further push property values higher.
Additionally, media coverage and expert analyses frequently highlight the positive impact of infrastructure projects on real estate, reinforcing buyer confidence and interest in these areas. This is especially true in Vietnam, where infrastructure improvements are a hot topic among investors and potential homeowners. The government's focus on these projects is seen as a key driver for the real estate market's growth.
In areas with better infrastructure, the real estate market is expected to recover and accelerate in the coming years. Experts predict that property transactions will strengthen as infrastructure projects continue to develop. This trend is particularly evident in Vietnam, where the government's commitment to infrastructure is paving the way for a more robust property market.
Sources: Open Development Mekong, Vietnam News, Vietcap
14) Vietnam’s political stability offers a secure climate for your investment
Vietnam offers a stable political environment that makes it a secure place for investment.
Over the years, Vietnam has shown consistent GDP growth, averaging 6.23% from 2000 to 2024. This steady rise, including a notable 7.40% growth in the third quarter of 2024, highlights the country's resilience and ability to recover from economic challenges. Such stability is a magnet for investors looking for reliable markets.
Vietnam's involvement in international trade agreements like the CPTPP and EVFTA is another draw. These agreements not only open up new markets but also ensure that Vietnam meets international standards, providing an extra layer of security for investors. The country's strategic location and growing market have attracted multinational corporations, boosting foreign direct investment (FDI) inflows.
Credit ratings also play a crucial role in investor confidence. Vietnam's positive ratings, such as Moody's Ba2 with a stable outlook, reflect its robust long-term growth prospects and dynamic trade environment. These ratings reassure investors about the country's economic stability and potential for future growth.
Vietnam's strategic location in Southeast Asia is a significant advantage. It serves as a gateway to other Asian markets, making it an attractive hub for businesses looking to expand in the region. This geographical advantage, combined with a young and skilled workforce, enhances Vietnam's appeal as a business-friendly destination.
With a government focused on economic reforms and infrastructure development, Vietnam continues to strengthen its position as a preferred investment destination. The country's commitment to improving its business environment is evident in its efforts to streamline regulations and enhance transparency, further boosting investor confidence.
Sources: Vietnam Briefing, Trading Economics, The Investor
We made this infographic to show you how property prices in Vietnam 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.
15) With more international schools, Vietnam is attracting families looking for homes
Vietnam has seen a boom in international schools over the past few years.
From 2017 to 2022, the number of English-medium international schools in Vietnam grew by 25%, reaching 1,905 schools. This surge is especially evident in bustling cities like Hanoi and Ho Chi Minh City, where these schools are popping up to meet the demand.
These schools cater to kids of all ages, from preschoolers to teenagers, and are a major attraction for expatriate families. In 2021, Ho Chi Minh City was ranked sixth among the top ten cities for expats to live and work, with many expats loving their life and work there.
International schools are a big factor in housing demand. Families often look for homes near these schools to make sure their kids have easy access to quality education. This trend is backed by government policies that encourage foreign investment in education, making living near these schools even more appealing.
In Ho Chi Minh City, the presence of international schools is a key reason why expats choose to settle there. The city offers a vibrant lifestyle and a supportive community, making it a top choice for those moving to Vietnam.
Sources: Which School Advisor, Vietnam News
16) Vietnam’s lively arts and culture make city living more attractive
Vietnam's arts and culture scene is a major draw for urban living.
In cities like Ho Chi Minh City and Hanoi, there's been a notable rise in art galleries and cultural events. Take the Sàn Art gallery in Ho Chi Minh City, for instance, which showcased an exhibition by the well-known Vietnamese artist Bui Cong Khanh from November 2024 to February 2025. This boom in cultural spaces means more chances for both locals and tourists to dive into the arts.
Vietnamese artists are also making waves internationally, shining a spotlight on the country's cultural scene. Artists from the Le Ngoc Theatre in Hanoi snagged prestigious awards at the 2024 Asia Pacific Arts Festival in Singapore. This kind of international recognition not only elevates the status of Vietnamese artists but also piques global interest in what Vietnam has to offer culturally.
The Vietnamese government is throwing its weight behind cultural heritage and the arts with initiatives like the national target programme on cultural development. This ambitious plan, running from 2025 to 2035, is set to invest over US$10 billion in cultural activities. Such backing is vital for preserving and boosting the cultural vibe of urban areas, making them more attractive to both locals and visitors.
With this kind of support, urban areas in Vietnam are becoming cultural hotspots. The government's efforts are not just about preserving the past but also about creating a dynamic cultural future that appeals to a wide audience. This makes cities like Ho Chi Minh City and Hanoi not just places to live but places to experience vibrant cultural life.
For anyone considering buying property in Vietnam, the thriving arts scene is a big plus. It's not just about owning a home; it's about being part of a lively cultural community. The blend of traditional and contemporary arts offers a unique living experience that is hard to find elsewhere.
Sources: Vietnam News, Vietnam Plus, Creation Contemporaine Asie
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.