Macroeconomic stability, infrastructure – key catalysts for real estate growth
Macroeconomic stability and infrastructure development are set to be the key drivers propelling Vietnam's real estate market to new heights in 2025, according to industry experts.
Hanoi (VNA)♏ – Macroeconomic stability and infrastructure development are set to be the key drivers propelling Vietnam's real estate market to new heights in 2025, according to industry experts.
Dr. Can Van Luc, Chief Economist at the Bank for Investment and Development of Vietnam (BIDV), stressed that the stable economic growth witnessed during the 2024–2025 period will provide a robust platform for real estate development. He pointed out factors such as controlled inflation, low interest rates, and eased exchange rate pressures have boosted purchasing power and uplifted investment confidence among businesses and individuals.
Nguyen Chi Thanh, Vice Chairman of the Vietnam Association of Realtors (VARS), echoed this view, believing that the domestic real estate market is on the cusp of a transformative phase. Supported by a new legal framework, the government's decisive intervention, and favourable economic and financial climate, 2024 set the stage for a pivotal recovery phase in 2025. This recovery is expected to drive robust growth in the coming years, he said.
Duong Duc Hieu, Director and Senior Analyst, Corporates, at VIS Rating, noted that quicker legal processes will make life easier for developers. Faster project approvals mean more homes, offices, and commercial spaces hitting the market sooner, which equals better cash flow and less financial stress for builders. This could mean a healthier real estate sector ready to tackle any debt challenges.
A surge in foreign direct investment (FDI) observed in 2024 is another positive sign for the real estate market. With 3.72 billion USD in newly-registered FDI, this sector emerged as a key player, ranking second only to manufacturing and processing. The figure represented 18.8% of the total new FDI inflows, signaling strong international interest.
Illustrative image (Photo: VNA)
David Jackson, CEO of Avison Young Vietnam, observed that foreign investors remain bullish about Vietnam's market prospects. This optimism is reflected in the total FDI disbursed in Vietnam in 2024, which reached 25.35 billion USD, marking a 9% increase compared to 2023. Real estate transactions alone reached 1.84 billion USD of this total, up by 60%.
Moreover, the stock market has become an essential avenue for capital raising among real estate companies. The trend of issuing shares within this sector not only saw substantial growth in 2024 but is expected to keep its momentum into 2025, providing yet another financial lifeline./.
Foreign direct investment (FDI) in the real estate sector for 2024 reached 3.72 billion USD, making up 18.8% of the total FDI that Vietnam attracted in the year, second only to the manufacturing sector, reported the General Statistics Office (GSO).
The supply of new apartments in 2025 is predicted to reach 40,000 units in the two major markets of Hanoi and Ho Chi Minh City, however it will remain difficult to cool down prices, even with a significant increase in supply, said insiders.
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