Hanoi’s housing market has been benefiting from a rare combination of favorable conditions, including the 100-year Capital Master Plan, a major wave of infrastructure investment, and institutional reforms, including the Capital Law passed by the National Assembly. These measures are designed to support Hanoi’s development as a polycentric city, expand its urban footprint, and create more space for long-term housing development.
From 2026-2027, Hanoi is expected to see increasingly visible benefits from the completion of Ring Roads 3.5 and 4, along with a number of new bridges, including Tu Lien, Tran Hung Dao, Thuong Cat, Van Phuc, Ngoc Hoi, Me So, and Hong Ha. By 2028-2029, infrastructure benefits are expected to extend further to growth hubs in the west, southwest, and south of the city.
By 2030, as metro lines, Ring Road 5, and the development vision for Hoa Lac Hi-Tech Park take shape, areas outside of the city center are expected to attract more residents, jobs, and economic activity, creating long-term momentum for the housing market.
Infrastructure boosts suburban housing
Savills expects Hanoi’s infrastructure priorities to boost real estate demand in the short term while laying the groundwork for long-term growth. Major infrastructure projects are also creating opportunities to expand access to affordable housing in suburban areas and neighboring localities.
The impact of infrastructure is already becoming evident in price trends and absorption rates in some areas. Savills has observed that projects along Metro Line No. 2A and Metro Line No. 3 have experienced smaller price adjustments than the broader market, highlighting how connectivity is becoming an increasingly important factor in determining the competitiveness of residential properties.
At the same time, improvements to connectivity between Hanoi and neighboring Hung Yen province are expanding residents’ housing options and increasing competition among neighboring markets. This competitive advantage is expected to strengthen further as Ring Roads 3.5 and 4 are completed and a series of new bridges open. These projects will not only improve connectivity between Hanoi and Hung Yen but also expand the scope for urban development east of the city.
According to Savills’ research, Hanoi’s housing supply is expected to continue expanding, supported by new large-scale urban developments and policies aimed at facilitating market growth. In the apartment segment, 22 new projects are expected to launch during the remainder of the year, bringing approximately 13,700 units to the market.
The outlook for villas and townhouses is also positive, with future supply coming from both existing and new projects. Savills forecasts nearly 6,000 units to be launched during the remainder of 2026, followed by approximately 28,000 units between 2027 and 2029.
Affordability remains a challenge
Hanoi’s housing market is entering a transition period, with both short and long-term factors influencing buyers’ decisions.
In the short term, affordability remains the biggest challenge, as housing prices continue to hold at elevated levels while affordable supply remains limited. As a result, liquidity in both the apartment and landed-housing segments has tended to slow compared with previous periods. In addition to interest rates and credit conditions, the announcement of numerous major master plans and infrastructure projects has also made many buyers more cautious. Buyers are taking more time to assess changes in connectivity and the development potential of individual areas before making decisions.
Over the long term, however, the market is developing a stronger foundation for its next growth cycle. The Capital Master Plan, the expansion of Hanoi’s urban footprint, and the accelerated development of ring roads, bridges, and transport links are creating the conditions for Hanoi to evolve into a polycentric city, extending development into areas beyond the urban core. As infrastructure improves, the development land bank will expand, creating opportunities for large-scale urban projects with a more diverse mix of housing products rather than the previous concentration in core areas.
At the same time, growing interest in social housing, affordable housing, and, in particular, rental housing is expected to help the market better meet residents’ actual housing needs.
Savills believes that expanding the development land bank, implementing large-scale projects and introducing dedicated credit policies for these segments could increase supply for groups currently facing difficulties accessing housing.
Looking ahead, integrated development models combining commercial housing, social housing, and rental housing will play an important role in meeting residents’ needs while contributing to the sustainable development of Hanoi’s housing market.
(*) Ms. Do Thi Thu Hang is the Senior Director, Advisory Services, at Savills Hanoi.
Google translate