Stability in the Asia-Pacific Real Estate Market
According to the Asia Pacific Outlook 2026 report by Savills, the region’s real estate market is stepping into 2026 with greater stability than in recent years. This newfound footing is largely attributed to recovering leasing demand, increasing consumer spending, and selective growth opportunities across various sectors. As we delve deeper into the factors influencing this trend, it becomes evident that specific markets, particularly Vietnam, are poised for significant advancement.
Vietnam’s Emerging Prospects
Within the broader context of the Asia-Pacific market, Vietnam stands out as a beacon of positive potential. The country’s solid macroeconomic foundations, coupled with expanding domestic demand, are increasingly positioning it as a critical player in regional supply chains. Recent data from the General Statistics Office, along with insights from international research institutions, indicate a clear pattern of recovery and stability in Vietnam’s economic landscape.
From 2022 to 2025, the country’s GDP growth illustrates a compelling narrative. After a remarkable expansion of around 8% in 2022, growth somewhat moderated to approximately 5.1% in 2023, primarily due to global economic challenges. However, forecasts suggest a rebound to about 7.1% in 2024, ultimately culminating in an impressive 8.02% growth in 2025. This trend positions Vietnam among the faster-growing economies in the Asia-Pacific region, drawing attention from international investors.
Rising Income and Market Demand
Beyond impressive headline growth, the quality of Vietnam’s economic expansion has markedly improved. The Asian Development Bank reports that GDP per capita has steadily risen from about $3,700 in 2022 to nearly $5,026 by 2025. Increasing income levels, alongside a burgeoning middle class, are laying a robust foundation for Vietnam’s domestic market. This rising affluence drives heightened demand for transport infrastructure, logistics, urban development, and commercial services—all of which have significant spillover effects on real estate.
Regional Trends Reflecting in Vietnam
Savills has noted positive expectations for the demand for Grade A office space across the Asia-Pacific, especially in emerging talent hubs such as India, Vietnam, and Malaysia. Multinational corporations are actively expanding their presence in these regions to tap into skilled labor at competitive costs. This trend is also evident in the retail property segment, which is buoyed by recovering consumer confidence, a resurgence in tourism, and the return of international brands, although high-quality supply remains limited in many markets.
Furthermore, in the industrial and logistics real estate sectors, the strategies of “China plus one,” along with supply chain diversification and rapid e-commerce growth, are significant drivers. Most major markets in the region are expected to see rents continue on an upward trend in 2026, reflecting genuine demand and the pivotal role of logistics infrastructure in global value chains.
A Shift Towards Higher Quality
Neil MacGregor, Managing Director of Savills Vietnam, provides insight into these trends, noting that Vietnam is mirroring regional dynamics but with greater depth and quality. “The country has progressed beyond merely attracting investments through cost advantages,” he explains. “Capital flows are increasingly directed towards higher value-added sectors like technology manufacturing, electronics, and modern logistics.” This shift is reshaping the demand for real estate toward higher quality, sustainability, and longer-term horizons.
Infrastructure and Foreign Investment Dynamics
A pivotal element strengthening the long-term outlook for Vietnam’s property market is the sustained inflow of high-quality foreign direct investment (FDI). In 2025, registered FDI reached around $38-40 billion, with disbursed capital hitting record highs—an indicator of long-term investor confidence in Vietnam’s business climate. European capital, in particular, is becoming more selective, focusing on high-value sectors, notably technology and logistics.
The EU-Vietnam Free Trade Agreement is also noteworthy, as it aims to eliminate import tariffs on over 99% of export tariff lines to the EU by 2027. This will further enhance Vietnam’s attractiveness within global supply chains and bolster its appeal to long-term investors.
Moreover, public investment in infrastructure is viewed as a critical growth engine for both the economy and the real estate market in the medium to long term. Major projects like the North-South Expressway, Long Thanh International Airport, and urban ring road systems in major cities will enhance regional connectivity, encouraging urban decentralization and creating new growth poles along strategic infrastructure corridors.
The Future Landscape of Investment
MacGregor emphasizes that infrastructure development will be a vital growth driver for Vietnam’s real estate market over the next decade. As transport and logistics networks are completed, satellite cities and secondary urban centers are anticipated to emerge as new hubs of development, expanding the market’s growth space significantly.
Looking ahead, Savills projects that Asia-Pacific real estate investment will rise by approximately 7% in 2026, reflecting a more stable investment cycle compared to markets like the US and Europe. While China’s influence may weigh on overall capital flows, markets like Japan, Australia, and South Korea continue to attract investors, backed by solid occupancy fundamentals and stability.
As global investors become more cautious and selective, those markets demonstrating tangible growth, strong domestic demand, and improving regulatory frameworks—such as Vietnam—are expected to maintain a long-term advantage. As MacGregor aptly states, “The succeeding phase will not be about short-term gains, but about investing based on real usage value, infrastructure, and a vision for sustainable development.” Markets that excel in these aspects will become focal points for capital flows in the coming years.