Hanoi is expected to welcome new office supply of 24,500 sq m in 2025, according to Cushman & Wakefield, a global real estate services firm.

In 2024, the capital city witnessed the office supply of some 35,000 sq m.

On average, Hanoi’s total stock will grow by at 7.7% per annum through the 2025–2029 period.

Net absorption is forecast to reach around 40,400 sq m by the end of 2024, mainly thanks to leasing demand from tenants looking to capitalize on market conditions with better negotiation advantages and better offers.

In 2025 and 2026, the vacancy rate will gradually ease to around 23% to 24% as demand starts to recover. Starting from 2027, the vacancy rate will climb to 27% or 28% due to the influx of new supply.

Primary leasing activities still came from key industry sectors such as banking, manufacturing, IT/technology, insurance, and logistics.

Rents are expected to increase only slightly, by 0.2% by the end of 2024. Accordingly, the citywide average gross rent is projected to reach $32 per sq m per month. Landlords are open to negotiations with tenants. These adjustments and incentives are designed to attract new tenants to fill vacant space and to facilitate leasing of remaining available areas.

Rents are expected to increase at around 1.7% to 2.2% in 2025-2026 with the influx of new supply. From 2027, rent growth is projected to be at around 1.0% per year.