The latest report from Savills Vietnam reveals that Hanoi’s real estate market in Q2/2025 remains stable amid the city’s intensified infrastructure investment. With plans to increase infrastructure spending to 7% of GDP in 2025, Hanoi has allocated VND 87 trillion (USD 3.4 billion) for 12 key transportation projects, including major bridges and the Ring Road 4. The integration of infrastructure and housing development strategies is expected to drive new momentum, expanding the real estate market in the medium to long term.
In the retail sector, Hanoi recorded an occupancy rate of 86% in the first half of 2025, with average ground floor rents at approximately VND 1.3 million/m²/month. Leasing activity was primarily driven by F&B brands and convenience stores, given the limited new supply. Savills anticipates that sustainable consumer trends and the recovery of global retail capital will continue to support this segment in the coming period.
The retail market is increasingly polarized. In the central area, new supply is limited, with only about 4,800 m² of net leasable space expected over the next three years. In contrast, non-central areas are witnessing robust supply prospects, accompanied by diverse retail models. Approximately 172,000 m² of new retail space is projected to be completed by 2027, significantly contributing to Hanoi’s overall market supply.
Tây Hồ and Eastern Hanoi have emerged as new hotspots, driven by large-scale projects such as Lotte Mall West Lake, Vincom Mega Mall Ocean Park, and Vinhomes Global Gates.
Lotte Mall West Lake is a strategic multi-service complex by Lotte Group in Vietnam, with a total investment of over USD 600 million.
In the office segment, Hanoi’s total supply reached 2.28 million m² of net leasable area (NLA) across 193 projects, concentrated in the West and non-central areas. Average rents stood at VND 564,000/m²/month, with an occupancy rate of 83%. Central business districts (CBDs) continue to face a shortage of Grade A supply, maintaining high rental levels.
According to Matthew Powell, Director of Savills Hanoi, “Hanoi’s retail sector in Q2/2025 demonstrated stability, yet polarization is evident. A key shift is that retail is no longer viewed as a passive investment but increasingly as an operational asset. This demands proactive management strategies, investment in refreshment and innovation based on consumer behavior insights, and targeted marketing to precisely position customer segments.”
Amid limited central supply, the market is shifting toward non-central areas. Notably, the development of large-scale commercial and entertainment projects in the West, coupled with rapid population growth in Eastern metropolitan areas, is generating significant appeal for retailers, bolstering positive market prospects for Hanoi in the coming years.
Unlocking Cash Flow: Real Estate Opportunities Along the Beltway 2 Infrastructure
The Hai Phong Ring Road 2 project, valued at nearly 7.5 trillion VND, is unlocking lucrative investment opportunities in the region’s real estate market. With a projected price appreciation of 20-30% and the potential for steady rental income from strategically located properties along the route, this development promises attractive returns for savvy investors.
City to Invest Nearly $430 Million in Flood Control, Climate Resilience, and Infrastructure Upgrades
Haiphong City is set to invest nearly VND 10,000 billion in two major initiatives: urban flood control and the construction of Ring Road 3. These projects aim to achieve sustainable infrastructure development and enhance resilience to climate change.
Will Hanoi Apartment Prices Continue to Reach New Heights in the Coming Period?
Ms. Do Thu Hang, Senior Director of Research & Consultancy Services at Savills Hanoi, predicts that Hanoi’s real estate market will see a clear differentiation in the upcoming period, based on both location and project quality. As a result, it’s essential to monitor and assess the market rather than drawing premature conclusions about current housing price trends.
Hanoi’s Old Quarter House Prices Hit Record High, Reaching 2 Billion VND per Square Meter
Hanoi’s townhouse prices continue to shatter records, with central areas surpassing 1 billion VND/m² and even exceeding 2 billion VND/m² in the ancient quarter. At such staggering prices, who will be the ones to invest?
“No House in the Alley: Young Couple with 6 Billion VND Makes a Surprising Decision”
With 6 billion VND in hand, Mr. Hung and his wife made a bold decision: they chose to forgo cramped, dimly lit alleyway houses. Instead, they opted for a surprising alternative—renting a centrally located apartment. This choice not only offered them a comfortable living space but also provided the financial flexibility they desired.
