The Vietnam real estate market reached a size of USD 30.0 Billion in 2025 and is projected to grow to USD 34.8 Billion by 2034, reflecting a CAGR of 1.64% during the forecast period from 2026 to 2034. Key growth drivers include rising urban migration, expanding residential projects, and supportive government policies. Foreign direct investment surged by 46% year-on-year in Q1 2025, underpinning investor confidence. The market is recognized as a prime investment hub, especially in commercial and industrial real estate sectors.
Study Assumption Years
Base Year: 2025
Historical Year/Period: 2020-2025
Forecast Year/Period: 2026-2034
Vietnam Real Estate Market Key Takeaways
The market size was valued at USD 30.0 Billion in 2025.
The market is expected to grow at a CAGR of 1.64% from 2026 to 2034.
The forecast period is from 2026 to 2034.
Foreign direct investment (FDI) surged 46% year-on-year in Q1 2025.
Urban migration and expanding residential projects are key growth factors.
The market is a prime investment hub in Southeast Asia, especially in commercial and industrial real estate.
Rapid urbanization is driving demand for residential developments in major cities.
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Market Growth Factors
Real estate grows fast as a business sector of Vietnam. Vietnam's growth of foreign direct investment (FDI) flows into the real estate sector was stronger than in other countries throughout Southeast Asia, seeing a year-on-year growth of 46% in the first quarter of 2025. This growth of FDI is driven by global manufacturing companies diversifying their supply chains and taking advantage of Vietnam's trade agreements. Areas like Bac Ninh, Binh Duong, and Long An demand more industrial parks, logistics centers, and factories after these expansions and because confidence in the Vietnamese regulatory and infrastructure environment improves.
Cities drive residential property to develop in Vietnam, particularly in Ho Chi Minh City, Hanoi and Da Nang. People migrating from rural to urban areas now demand mid-tier apartments, mixed-use projects, and gated communities. Also, developers build more affordable housing in Vietnam. In conjunction with government programs to urbanize and the availability of affordable credit, developers have responded with large housing projects. A demand for development is driven by increased income, expanding middle class aspirations and growing transport infrastructure. As young urban professionals continue to seek residences close to their work, demand continues for compact and affordable housing in cities.
This investment surges because government policies favor. These policies support real estate, attract investment from other countries, and liberalize regulations. Such actions ease a more welcoming business environment for developers and investors in Vietnam. This favorable environment highlights the prominent increase of foreign investment into the real estate sector further, as foreign direct investment increased 19% to USD 6.31 Billion and overall foreign direct investment disbursement reached a record USD 25.35 Billion. This grows the steady market, along with rapid urbanization and industry developing, during the forecast period.
Market Segmentation
Property Type Insights:
Residential Real Estate: Includes apartments, villas, and other residential properties. Rapid urbanization drives demand for mid-range apartments and gated communities, reflecting preferences of the rising middle class.
Commercial Real Estate: Comprises offices, retail, hospitality, and other commercial properties. Attracted by foreign investment and Vietnam's positioning as a regional hub, commercial real estate is growing notably in key urban centers.
Regional Insights
Northern Vietnam, Central Vietnam, and Southern Vietnam are the major regional markets covered in the report. While specific market shares and CAGR by region are not detailed, major urban centers such as Ho Chi Minh City, Hanoi, and Da Nang are focal points for residential and commercial development, driven by rapid urbanization and industrial growth. This regional diversity reflects Vietnam's broad-based real estate growth across the country.
Recent Developments & News
In April 2025, Novaland Group partnered with GreenViet to launch an ESG initiative focused on sustainable development. The partnership aims to create an ESG roadmap for 2025–2030, with Novaland targeting international sustainability standards and top GRESB rankings by 2030. GreenViet, a leader in green building certifications, guides this integration. Additionally, in Q3 2024, Hanoi apartment prices surged 22.3% year-on-year to USD 2,547 per sqm, alongside a 226% increase in sales, whereas Ho Chi Minh City experienced a 2.5% price drop and 4% sales decline. Vietnam recorded over 47,000 property transactions in 2024 with a 72% absorption rate. New housing laws and a 7.09% GDP growth rate supported market recovery. Foreign investment rose 19% to USD 6.31 Billion, and total FDI disbursed hit a record USD 25.35 Billion, boosting investor confidence.
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Customization Note:
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
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