ECONOMY

Ha Noi’s GDP growth improved by 5.8% YoY in Q1/2023, higher than the national average of 3.3% YoY. Industry and construction expanded by 2.4% YoY, and services saw robust growth of 7.4% YoY. Administration and services recorded the greatest increase at 35.1% YoY, followed by finance, banking, and insurance at 9.7% YoY, real estate at 9.4% YoY while warehousing and transportation increased by 6.9% YoY.

In Q1/ 2023, foreign direct investment (FDI) into Ha Noi increased by 260% YoY to US$1.71 billion, which is approximately equal to total FDI in 2022. Distribution, construction, information technology, telecommunications, and manufacturing received the largest investment. The influx and expansion of foreign businesses in Viet Nam  will almost certainly stimulate office demand and further investor interest.

SUPPLY

Thirty-six new office buildings have been completed since 2019. By Q1/2023, stock reached 2.17 million sq m net leasable area (NLA), increasing by 4% per annum since 2019; Grades A and B increased by 5% per annum and Grade C trailed at 2% per annum. 

With seven projects or a 40% share, the Secondary area had the greatest Grade A stock while The West contributed a 33% share from five projects, and the CBD had a 27% share from 15 projects.

By the end of 2023, office stock is expected to reach 2.24 million sq m NLA. By 2025, 12 new projects totalling 265,370 sq m are expected. Starlake in the Secondary area is expected to have a 30% share or 80,900 sq m.