Hanoi office market 2025 in the hands of tenants: consultant

By Vu Pham, Minh Hue
Fri, January 24, 2025 | 10:05 am GMT+7

The Hanoi office market will be a tenants' market by the end of 2025 or even 2026, so developers need to change their financial equation to bring more attractive incentives to tenants, said Hoang Minh Nguyet, senior director for commercial leasing at Savills Hanoi.

Hoang Minh Nguyet, senior director for commercial leasing at Savills Hanoi. Photo courtesy Savills.

Hoang Minh Nguyet, senior director for commercial leasing at Savills Hanoi. Photo courtesy Savills.

What is your assessment of the Hanoi office market trend in 2025?

The 2024 market recorded a good rebound in the second half, when a series of companies had their plans to relocate, expand, or open new offices approved. This will help the market demand in 2025 to rise. We expect the absorption rate of vacant areas in 2025 to be higher than in 2024.

This year, the market will have many new sources of supply, giving tenants more choices. At the same time, it will increase competition among developers in terms of rental prices, building quality, and other rental incentives to attract customers.

Abundant new supply can lower the occupancy rate of the entire market. But the market will have much more positive activities in terms of both supply and demand in the new year.

Regarding tenants’ demand for office space, is there any difference compared to previous years?

At the end of 2024, we conducted a survey with nearly 500 businesses that are currently tenants of class A and class B offices, with an aim of better understanding the demand of the office market in 2025-2026. The results provide interesting information about the continuous shift in office demand.

First, the selected office location. The demand has shifted from the Hoan Kiem district area to Ba Dinh and Cau Giay districts. The percentage of tenants interested in the Hoan Kiem district area decreased from 45% in 2021-2022 to only about 25% in 2024.

In addition, tenants expanded their search, instead of focusing on just one area to find rental space as before. Almost all tenants pay attention to at least two different areas when looking for a new location, which can be Hoan Kiem or Ba Dinh, Cau Giay or Ba Dinh, Dong Da or Tay Ho.

This is understandable as the Hanoi market has achieved diversity and differentiation in terms of administrative/office locations. Therefore, tenants have more choices, and their choices will no longer be limited to one area. This means tenants will have more ability to negotiate with owners to achieve better rental conditions than before.

Taisei Square Hanoi office building in Hanoi. Photo courtesy of the building.

Taisei Square Hanoi office building in Hanoi. Photo courtesy of the building.

Which industries will have high demand for office space this year?

Information technology and manufacturing will still be the leading industries in terms of office space rental, because they often require very large rental spaces, with the average area of up to over 1,000 square meters of floor space.

Taking into account the number of office rental transactions in the 2025-2026 period, companies in the consulting sector, including financial and legal consulting, and the distribution and education industries may take the lead thanks to their rapid development in the coming time.

Is the office real estate market in Hanoi a tenants' market?

With the large supply across the districts as it is now, the Hanoi market is clearly more beneficial for tenants. They now have more choices so they become more demanding.

We believe that until the end of 2025, even 2026, the market will still be largely in favor of tenants. Therefore, developers need to make better financial calculations to bring more attractive incentives to tenants.

What do office owners need to change to attract tenants in 2025?

In the past, owners would simply need to build a building and rent out empty space. Now, they have to provide more to tenants.

Because the market is very competitive, most buildings are built in a meticulous manner and Class A buildings are all aiming for green certification. A green certificate is now almost a must, especially in the context of climate change, air pollution, and environmental pollution, along with the need for businesses to ensure the requirements of achieving Net-Zero goals.

Services in the building are also a concern. Currently, buildings that are built later tend to compete by providing more services to customers. Dining areas for employees, gyms, green spaces are services that many owners add to retain tenants.

Some developers are very flexible in rental policies. They even support tenants to invest in perfecting interiors. Many tenants can sign management and operation contracts in cooperation with serviced offices, coworking spaces, and shared offices. Owners now can add more amenities in service of tenants.

Therefore, to compete amid the large number of office supplies, owners should expect reasonable prices, offer attractive rental policies, and provide more internal services.

Comments (0)
  • Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7

'Precious space' in Vietnam's monetary policy

'Precious space' in Vietnam's monetary policy

The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.

Economy - Mon, September 15, 2025 | 10:15 am GMT+7

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS

The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).

Banking - Mon, September 15, 2025 | 8:04 am GMT+7

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026

A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.

Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7