Apartment buildings in HCM City. — VNA/VNS Photo
Infrastructure will be the most critical growth driver for Vietnam over the next 10 years, with around USD 49 billion currently being invested nationwide, Savills Vietnam said.
Key projects include the North South Expressway, Long Thanh International Airport, ring road systems and liquefied natural gas infrastructure. Once completed, these networks are expected to reshape Vietnam’s urban landscape and expand development corridors linking secondary cities such as Binh Duong, Dong Nai, Haiphong and Quang Ninh.
Savills forecasts that by 2035, Vietnam’s gross domestic product will triple compared with current levels, with average annual growth of 7-8 per cent.
The urbanisation rate is projected to reach 50 per cent, equivalent to about 51 million urban residents, while the middle class could account for up to 75 per cent of the population. This is expected to drive strong demand across residential, commercial, hospitality and healthcare property segments.
Together with rapid urbanisation, satellite cities will become the next centres of real estate development, said Troy Griffiths, deputy managing director of Savills Vietnam.
Despite global economic volatility, Vietnam continues to stand out as one of the region’s most resilient economies, supported by stable growth, policy reforms and steady inflows of high quality foreign investment, he said.
The period from 2025 to 2035 is expected to mark a new phase of structural transformation, with investment and production shifting toward high technology industries that generate higher value and strengthen Vietnam’s position in regional value chains.
Vietnam combines strong growth momentum, a young population, proactive policy reforms and large scale infrastructure investment, Griffiths said, adding that these fundamentals will support a decade of sustainable expansion with real estate remaining a core pillar of economic development.
The Government is accelerating legal reforms and capital mobilisation, including infrastructure bonds and digital transformation in market governance, to create a more transparent and modern investment environment capable of attracting long term capital.
Climate change poses significant challenges but also opens opportunities for green investment. As one of the countries most vulnerable to sea level rise and saline intrusion, Vietnam has also emerged as a regional leader in Net Zero commitments and green infrastructure development.
Sustainable, energy efficient and climate adaptive real estate projects are expected to become the new market standard, Griffiths said.
According to Savills’ third quarter report, Vietnam’s property market maintained positive growth momentum. In Ho Chi Minh City, office and retail occupancy remained around 90 per cent, reflecting stable demand from technology, finance and service sectors.
The apartment market saw the launch of about 5,200 primary units with an absorption rate of 51 per cent, while low rise housing liquidity improved thanks to reasonable pricing and infrastructure projects such as Ring Road 3 and the Ben Luc Long Thanh Expressway.
In Hanoi, office and retail segments continued to record stable growth, with rising rents and occupancy. Apartment supply reached about 6,300 units, with absorption exceeding 80 per cent, driven mainly by owner occupier demand.
Looking ahead to 2025, authorities are expected to tighten market monitoring alongside new legal regulations, while economic stabilisation and infrastructure investment are forecast to further support real estate demand.
Emerging trends such as smart cities, artificial intelligence in property technology and sustainable development are shaping the market. Affordable housing is also gaining attention, supported by policies promoting public private partnerships and integrated urban development.
