Why Foreigners Should Invest Real Estate In Hanoi in 2023?
Calling all global investors!
Are you looking for a city with limitless opportunities and a real estate market on the verge of extraordinary growth?
Ha Noi, the vibrant capital of Vietnam, holds the key to your financial success.
Why YOU should invest in Hanoi Real Estate right now?
Location
Hanoi is the capital of Vietnam which located in the north of the country. This city continued to benefit from Vietnam’s status as a China-plus One destination.
Hanoi’s prime location, easily connecting to Northern developed countries like China, Hongkong, Taiwan, Korea, Japan…
The Trade War, unstable economy in Europe, conflicts between Russia and Ukraine make the city enjoy its unique location which connects easily to all industrial provinces around and Northern developed countries: China, Hongkong, Taiwan, Korea, Japan… These countries see Ha Noi, Vietnam is the closest, the most potential location and with the cheap set up and labor costs to move their factories away from China.
Population
Hanoi, with a population of 5 million, is secondly crowded in Vietnam after Ho Chi Minh City, experiencing a 3-5% population increase year on year. This year, it increased 3.67% from the last one. Now, Hanoi has more than 5.5 Million people, and keeps increasing. This led to the rising demand for housing from the locals.
Rapidly increasing population of Hanoi city
FDI
And not only locals have housing demand needs. It turns out Ha Noi is just after Ho Chi Minh City with the highest Foreign Direct Investment (FDI) in Vietnam.
Hanoi – Top 9 cities for cross-border investment
Hanoi made it to Top 9 Cities for Cross-Border Investment: right after other famous cities like Tokyo, Singapore, Ho Chi Minh City, Shanghai… and above Seoul, Korea.
“End-users, developers and opportunistic investors are all eyeing opportunities in this market”.
As a result, Hanoi faces housing pressure due to population growth, both from local residents and foreigners, as well as from people from other regions, similar to the situation in Ho Chi Minh City.
GDP
In 2022, Hanoi’s GDP reached 8.89%, surpassing the target of 7-7.5%. Particularly, Hanoi attracted over 1.7 billion USD foreign investment, representing a 10.3% year-on-year increase. These factors contribute to Hanoi’s position among the top 9 cities globally with the highest investment in 2023.
Hanoi’s economy growing well and stably
Office, Retails & Industrial Sectors
Office
When evaluating a city’s international appeal, the office sector is the most obvious indicator, with a higher number of Grade A offices and an increasing number of foreign companies renting office spaces, the growth in Foreign Direct Investment (FDI), the number of expatriates in Hanoi is increasing.
Foreigners are attracted to Hanoi because of the presence of many foreign companies and job opportunities in the city center. With its proximity to major Asian economic powerhouses such as China, South Korea, Taiwan, and Japan, Hanoi has seen an increase in large companies establishing their presence.
The business district formed in Hanoi, often called Hanoi’s Silicon Valley at Midtown
This has led to a rise in the supply of Grade A office spaces, including buildings like Capital Place, Lotte, and Kangnam 72…
Retail
The retail sector has also experienced a decreasing vacancy rate. The vacancy rate in the latest report in 2023 is only 4.8%, decreased 8% year on year, super low, indicating a growing interest in the Hanoi retail market.
Vacancy rate in Hanoi’s retail market is decreasing y-o-y
Industrial Market
And this is the most active sector: there is a high demand for industrial properties in Hanoi, particularly from Taiwan and Hong Kong. These investors see the vibrant investment activity in warehouse and industrial spaces, as Hanoi offers more favorable rental prices, licensing processes, and planning regulations compared to the Southern region of Vietnam.
Favorable rental of industrial properties in Hanoi comparing to Southern region
Additionally, the proximity to Taiwan and Hong Kong has prompted them to consider relocating their operations to Hanoi.
Residential Market
Well, you see a capital with an increasing population.
You see a top 9 FDI attraction in the world.
You see the offices, retails demand increasing from a lot of foreigners.
Then of course, all of those accumulated in increasing demand for housing from both locals and foreigners.
Residential market in Hanoi is booming with more high-end projects introduced
The leading sectors for investment include logistics, industrial, office, and residential properties.
Since July 2015, when the laws allowed foreigners to invest in real estate in Vietnam, the focus was mainly on Ho Chi Minh City. The comparison between Thu Thiem and Pudong, Shanghai, was prominent.
Foreign investors were introduced to Ho Chi Minh City due to its political stability and better infrastructure, as the city was more open-minded.
Don’t get me wrong, Ho Chi Minh is still the lead of the Vietnam economy!
However, after the COVID-19 pandemic and a period of significant price increases in Ho Chi Minh City, the real estate market became considerably expensive.
For example, in District 1, prices reached 7,000-8,000 USD/m2, and in Vinhomes Grand Park, District 9, prices reached 3,500 USD/m2. Issues related to land and legal matters in Ho Chi Minh City have led the government to reevaluate many projects.
Primary price and rental yield in Hanoi are both attractive
This situation has provided an opportunity for Hanoi, where high-end projects such as Masteri West Heights offer prices as low as 2,500 USD/m2.
Hanoi Residential Areas and price ranges
With Masteri West Heights, the location is also different from Vinhomes Grand Park in HCMC. It takes only 15 minutes to reach the business districts and 25 minutes to the old city center (Old Quarter).
The proximity and advantages make the current property market in Hanoi appealing to foreign investors. Similar to the situation in Ho Chi Minh City in 2016-2017, when high-end projects like Nassim, Gateway, and Vinhomes Central Park… emerged to cater to the demands of foreign investors.
Hanoi is currently experiencing a similar trend. This represents a second opportunity for foreign investors who may have missed the chance to invest in Ho Chi Minh City in 2015.
In the next article, we will continue to explore how the development of Ha Noi’s infrastructure, the MOST POWERFUL MOTIVATION for your investment.
Don’t miss out – stay tuned!
Realtique Vietnam Real Estate
+84866810689 (WhatsApp/Viber/Zalo/WeChat)
