Key Trends in the Office Real Estate Sector in Vietnam
Transportation and utility infrastructure Improving: Vietnam has been investing to improve public utilities and infrastructure. Vietnam now has over 2000 Km of highways. Ho Chi Minh City is planning to launch a city wide metro network which will help travel between the CBD and other areas of the city. Various expressway projects are being planned or under construction to improve connectivity within major cities. Steps like these raise the moral of speculators and Investors who will start to invest in Vietnam Residential Market.
Young Homeowners: Population Rising: As of 2018, Vietnam has a population of over ~ Million people, a statistic which has grown at a CAGR of ~ % 2013-2018.
Among this population the number of working professional in the age group of 25-40 has increased at a CAGR of ~ %, People who are most likely to be the new sources of demand for the market.
How is Vietnam’s Hotel Real Estate MARKET Positioned?
Vietnam has become a tourist hotspot in recent years, with the number of international tourists growing at a rate of ~% from 2013-2018. With Business destinations such as Ho Chi Minh City and Hanoi and upcoming Tourist Destinations like Da Nang, Vietnam’s Hotel industry is sure to witness a boom in demand. The market is not only driven by foreign tourism but also by domestic travel. Both local and foreign tourism drive the demand for hotel rooms upward. As the disposable income continues to increase, domestic travelers seek better and more luxurious hotels. Additionally, foreign visitors, might be price sensitive, but still seek higher-end hotels when visiting Vietnam, whether for leisure or meeting-incentives-conference-exhibition (MICE) purposes.
Cities such as Da Nang and Hoi Phong, will serve as the next hubs for the tourism industry, so global brands will try to increase the presence in these cities to gain the early advantage, making the hotel market tin Vietnam highly competitive.
Key Trends in the Hotel Real Estate Sector in Vietnam
Rising number of Domestic Tourists: Vietnam has witnessed a rising influx of Domestic tourists as disposable income per individual increases. Vietnam recorded the presence of ~ million domestic tourists in 2018, while Ho Chi Minh City and Hanoi witnessed ~ million and ~ million domestic tourists in 2018. Vietnam is expected to increase this number to ~ million by 2025 which is a positive indicator for the industry.
Influx of Foreign Brands within Vietnam: Vietnam’s potential as a tourist hotspot has become clear to global hotel brands as is evident from the increase in number of branded operators from ~ in 2010 to ~ in 2018. Vietnam is putting in efforts to improve public infrastructure and tourism services, this makes hotel brands willing to invest in Vietnam.
Rising number of foreign tourists: Foreign Tourists in Vietnam have been increasing over the years. With ~ million foreign tourists in 2013, the number has grown to ~ million foreign tourists by 2018 at a CAGR of ~ %. This number is expected to rise to ~ billion by 2025. This showcases the strong demand pool for Hotels in Vietnam’s Hotel Market.
Key Segments Covered:-
Vietnam Office Real Estate Market
Grade A Office
Grade B Office
Grade C Office
Ho Chi Minh
Vietnam Retail Real Estate Market:-
CBD (Central Business District)
Non CBD (non central business district)
Ho Chi Minh
Vietnam Residential Real Estate Market:-
Villas and Townhouses
Ho Chi Minh
Vietnam Hotel Real Estate Market:-
3 Star Hotels
4 Star Hotels
5 Star Hotels
Others (Less than 3 Star Hotels)
Ho Chi Minh
Key Target Audience:-
Real Estate Developers
Real Estate Consulting Companies
Third Party Real Estate Companies
Time Period Captured in the Report:-
Historical Period – 2013 – 2018
Forecast Period – 2019F – 2025F
Case Studies Covered:-
For More Information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications