Colliers: Brighter days ahead for real estate

Is it worth it for foreigners to buy real estate in Vietnam?

Against the volatile backdrop of global geopolitical tensions and economic shocks in 2022 (and are expected to endure in 2023), Vietnam remains one of the world’s fastest growing economies and one of the top investment destinations. For years, its real estate has been one of the most attractive sectors to foreign investors, second only to the manufacturing sector.

In the first 11 months of 2022, FDI inflow into the real estate sector in Vietnam was recorded at about USD 4 billion. The country has an abundant workforce, more than 50% of its 100-million population is under age 35, and a rising middle income class. Rapid urbanization has been recorded in the past 10 years, from 31% in 2011 to 41% in 2022. By 2030, about 50% of the country’s population will live in urban areas and this number will increase to nearly 65% by 2069.

The government is investing heavily into infrastructure development (highways, hospitals, airports, seaports, etc.) to fuel up the national growth. Not to mention the political stability, preferential policies such as land incentives, exemptions and reduction of corporate income tax rates, etc. are in place to encourage companies to invest and do businesses in Vietnam.

Hence, opportunities arise in every real estate sector in Vietnam in the mid to long term. For the time to come, the greatest potential lies in the industrial and office segments, followed by residential, retail, and hospitality assets.

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