The Economy’s Upward Trend: Why Luxury Condos Are the Smart Investor’s Choice

Strong Economic Recovery: A Golden Opportunity for Inner-City Real Estate to Ride the Wave

As of Q1 2025, Vietnam’s economy continued its strong recovery, achieving a GDP growth rate of 6.9%, while the CPI remained stable at 3.2%. Within this broader context, foreign direct investment (FDI) continues to be a bright spot, demonstrating international investors’ confidence and opening up significant development opportunities for the real estate market, especially in central urban areas.

According to the latest data, in the first three months of the year, Vietnam attracted $11 billion in registered FDI, with $5 billion already disbursed. This growth reflects international investors’ confidence and the strong inflow of production and service capital into Vietnam. Consequently, tens of thousands of experts, senior managers, and highly skilled engineers will continue to flock to major economic centers such as Hanoi, Ho Chi Minh City, and surrounding areas.

Along with attracting FDI, the demand for high-standard housing for foreign experts and middle to senior-level executives in FDI enterprises is emerging as a promising segment. In reality, this group has a high demand for apartments in inner-city areas, especially studio and two-bedroom apartments with suitable areas that cater to the needs of young people or nuclear families.

The strong recovery in international visitor numbers, with 6 million arrivals in Q1 – almost a third of the total for 2024 – also indicates a growing demand for short and long-term accommodation, boosting the luxury rental market in central Hanoi.

According to real estate exchanges, many luxury apartment projects in Hanoi’s inner-city areas have recorded high absorption rates by meeting the accommodation needs of the above-mentioned customer groups: central locations with convenient connections, enclosed utilities, a secure and civilized living environment, and internationally standardized professional management services. Luxury apartments in central areas, by maximizing the satisfaction of these demands, always attract a large source of demand from both Vietnamese and foreigners. This creates significant rental business potential and long-term price appreciation opportunities.

Thus, inner-city luxury real estate is expected to continue to be an attractive “profit destination” for both investors and owner-occupiers.

Limited Supply of Inner-City Luxury Apartments Increases Appeal to Investors

The trend of “living to international standards in the heart of the city” is the top choice not only for foreigners but also for young Vietnamese experts working in a globalized environment. Capturing this demand, the Hanoi real estate market in Q1 2025 witnessed a wave of premium and luxury project launches, but most of the supply was concentrated in outer districts such as Gia Lam, Dong Anh, Tay Ho, and Nam Tu Liem.

According to the latest survey, Hanoi currently has only a few premium inner-city projects in Ba Dinh and Cau Giay districts, with asking prices ranging from VND 130-150 million/sqm, or The Ninety Complex (Dong Da) with prices ranging from VND 90-100 million/sqm. In contrast, most of the new supply has shifted to peripheral areas such as Dong Anh, Gia Lam, and Nam Tu Liem, with prices ranging from VND 60 to over VND 120 million/sqm.

Young people, experts, and nuclear families often prioritize living in luxury apartments in the inner city due to their unique advantages. Firstly, the prime location offers proximity to the administrative and financial center, international educational institutions, large hospitals, and cultural and entertainment spaces, allowing residents easy access to high-quality services within a few minutes of travel.

Additionally, the urban transport infrastructure is becoming increasingly integrated with the metro system, ring roads, and radial routes, facilitating quick connections to work, study, and airport areas. Living in the inner city saves considerable travel time, a factor that is increasingly valued in the modern lifestyle, demanding efficiency and balance.

Projects near metro stations always attract great attention

Not just a place to live, luxury apartments in the inner city also serve as ideal living spaces thanks to their modern design, optimized functionality, reasonable area, high-quality materials, and strict construction standards. Additionally, on-site amenities such as swimming pools, gyms, spas, commercial centers, and landscaped gardens meet the needs of living, working, and relaxing in one space.

Professional property management services are another significant advantage, as inner-city apartment complexes are often operated by professional management companies, ensuring 24/7 security and dedicated resident care – a feature particularly suited to the modern lifestyle and stringent requirements of foreign experts.

Luxury apartments in the inner city, which embody many valuable aspects of life, are almost absent from new project launches, making central luxury apartments a “rare commodity” in the market.

This creates a unique appeal for high-end customers, especially foreign experts, successful individuals, and young urban families. According to experts, in the future, the supply of luxury real estate in central areas is unlikely to increase significantly due to limited land funds and strict planning regulations.

This scarcity is driving up the value of inner-city apartments, making them a strategic choice for investors seeking sustainable, high-end products that appreciate over time.