Positive Performance in Hanoi’s Property Market: Q3/2025 Insights from Savills
THE HANOI TIMES — In a promising development for Hanoi’s real estate sector, Savills Hanoi recently reported a robust performance across retail, office, and hospitality sectors in Q3/2025. Rising occupancy rates and stable rents are being largely attributed to a rebound in tourism and sustained interest from foreign investors.
Retail Market Growth
The retail landscape in Hanoi witnessed a significant upturn, highlighted by a 3% increase in ground-floor rents across various districts, bringing the average to VND 1.3 million (approximately US$49.4) per square meter per month. With occupancy rates climbing by one percentage point to 85%, the city’s modern retail supply has soared to 1.8 million square meters.
Savills’ report emphasizes that shopping centers remain the dominant retail format, reinforcing the inner city as the primary shopping hub with a density of 0.5 square meters per person. Matthew Powell, Savills Hanoi’s Director, noted the ongoing expansion of lifestyle and food and beverage brands. This trend reflects a shift towards experience-based and sustainable consumer spending.
Emerging Retail Hubs
Hanoi’s retail scene is further punctuated by the rise of emerging suburbs like Cau Giay, Thanh Xuan, and Ha Dong, benefiting significantly from enhanced transport infrastructure, including newly constructed metro lines. These improvements have spurred increased customer foot traffic.
Looking forward, the city is set to see a substantial influx of over 330,000 square meters of new retail space primarily centered in the Starlake area. This influx could intensify competition among retailers unless they adopt clear differentiation strategies.
Stability in the Office Market
Shifting focus to the office sector, by the end of Q3/2025, Hanoi’s total office supply reached 2.3 million square meters across 190 buildings. The occupancy rate slightly increased to 85%, while rental prices remained stable, indicating resilience in the market.
The inner city continues to dominate office space supply, showing a gradual departure from traditional business districts. Hoang Dieu Trang, Senior Director of Commercial Leasing at Savills Hanoi, suggests that as supply grows, developers need to strike a balance between timely project completion and the creation of distinctive properties to sustain competitive rental rates.
Recent leasing activities have predominantly arisen from companies looking to optimize costs and enhance workspace quality, particularly in the finance, insurance, and real estate sectors. Notable new projects like Tien Bo Plaza, The Marc 88, and Oriental Square are set to introduce premium office spaces in Q4/2025, with an additional 1.2 million square meters of primarily Grade A offices anticipated between 2026 and 2027.
Hospitality Sector Flourishes
The hospitality sector also demonstrated resilience, with Hanoi hosting 65 hotels that collectively offer 10,900 rooms. Although this figure reflects a slight decline due to the removal of three three-star hotels from the rating list, the occupancy rate reached 72%, marking a one-percentage point increase from the previous quarter and five points year-on-year.
Hotel performance has been buoyed by a surge in international arrivals, especially via MICE tourism (meetings, incentives, conferences, and exhibitions) and an influx of high-quality hospitality infrastructure. Between January and September, Hanoi welcomed 5.5 million international visitors, representing a 26% year-on-year increase, achieving 86% of the full-year target.
This surge in international tourism has positively influenced the serviced apartment segment as well, which now includes nearly 6,400 units from 65 projects. Occupancy rates here have soared to 87%, with rents increasing by 4% year-on-year, primarily driven by demand from foreign professionals and an uptick in Foreign Direct Investment (FDI) in the region.
The Role of FDI and Infrastructure
According to Hoang Dieu Trang, the combination of strong FDI inflow and improved infrastructure has turned Hanoi into an attractive hub for expatriates and international management brands. Matthew Powell has also indicated that the city’s commercial real estate landscape is undergoing transformation, with growing potential in expanding inner districts and western areas, which are emerging as new epicenters for investment and consumer activity.
Future Outlook
Looking ahead, Savills projects that from 2026 to 2028, Hanoi’s commercial property market will continue to thrive on the back of burgeoning FDI, infrastructural advancements, and increasing tourism footfall. However, the report warns of potential oversupply challenges. Going forward, quality, customer experience, and flexibility will emerge as key determinants of competitiveness in this evolving landscape.