Hanoi’s office market will grow stably in 2021, Director of Savills Hanoi Matthew Powell has projected.

Leasing growth will be fuelled by customers with headquarters in Vietnam and confidence about expanding their businesses in the country’s capital.

According to figures from Savills, as of the end of 2020, all segments in the office market have achieved growth over the last five years. Grade B captured the strongest annual growth, of 6%, while the figures for Grade A and Grade C were 4% and 3%, respectively.

The total leasing area offered by the market amounted to nearly 2 million sq.m, up 6% annually.

Interest in the city’s Grade A office space from Japanese and Korean investors and companies has been marked.

Hoang Nguyet Minh, commercial leasing director at Savills Hanoi, said that currently, many companies have changed their working style in a more flexible manner rather than only having staff working at desks. The requirements of an office will also be based on the criteria of work efficiency and convenience in the workspace and especially focus on developing common areas.

The pandemic is driving demand for more flexible and creative office spaces and an employee-friendly environment to increase productivity and creativity. However, this is a challenge for older buildings.