The Gross Domestic Product (GDP) growth in the first quarter for Hanoi has brought a very promising outlook to the real estate market.
Hanoi’s GDP reached 8.7% for the first quarter of 2010, which is higher than the national average rate of 5.83%.
The tourism industry achieved a growth rate of 3.8% compared with the same period of last year.
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| Tourism development will boost hotel markets |
During the first quarter, Hanoi licensed a total of 65 foreign direct investment (FDI) projects and it had disbursed $50 million.
In addition, many construction investment projects in Hanoi, including transportation infrastructure development, have made traveling more convenient for the tourists.
Moreover, a construction master plan for Hanoi is in the process and Hanoi will be receive a face lift.
Benefiting from economic growth, the real estate market had made a promising start this year, especially in housing and hotel segments.
According to CB Richard Ellis Property Company (CBRE), there were 5,000 apartments for sale in Hanoi during the first quarter.
Along with expansion towards the West (My Dinh area) and infrastructure development in this area, many Hanoian's want to buy houses here in areas such as the apartment building projects located in Cau Giay, Dong Da, Ha Dong and Tu Liem Districts.
Regarding the hotel market, average occupation rate was at 60%. Revenue per available room (RevPAR) of 3 star hotels went up 26% or $22.81 while RevPAR of 4 star hotels was at $32.52.
Savills consulting company revealed that political turmoil in Thailand might create a promising chance for the Vietnamese hotel industry in the future.
As expected, there would be over 1,000 available rooms at 3-5 star hotels in Hanoi within the year.
