The Hanoi property retail market recorded a 3% increase in ground-floor rents across all areas, reaching VND1.3 million (US$49.4) per square meter per month, while occupancy rose by one percentage point to 85%.

In its latest market report, Savills Hanoi said that the total modern retail supply reached 1.8 million square meters, with shopping centers remaining the dominant format. The inner city reached a retail density of 0.5 square meters per person, reinforcing its role as the city’s primary shopping hub.

Inside a shopping mall in Hanoi. Photo: Kinh te & Do thi Newspaper

According to Savills Hanoi’s Director Matthew Powell, lifestyle and food and beverage brands continue to expand, reflecting consumers’ growing preference for experience-based and sustainable spending.

Emerging retail hubs such as Cau Giay, Thanh Xuan and Ha Dong are benefiting from improved transport infrastructure, including metro lines and increasing customer traffic.

From now to 2028, the city expects over 330,000 square meters of new retail space, mainly in the Starlake area, which could heighten competition if projects lack clear differentiation strategies.

Office market stable with inner-city dominance

By the end of Q3/2025, Hanoi’s total office supply reached 2.3 million square meters from 190 buildings. The occupancy rate increased slightly to 85%, while rental prices remained stable.

The inner city continued to account for the largest share of supply, indicating a gradual shift away from the traditional central business areas.

Hoang Dieu Trang, Senior Director of Commercial Leasing at Savills Hanoi, said that with increasing supply, developers should balance completion timelines and create distinctive products to maintain competitive rental rates.

New leasing activities mainly stemmed from companies relocating to optimize costs and improve workspace quality, led by the finance, insurance and real estate sectors, she said.

In Q4/2025, projects such as Tien Bo Plaza, The Marc 88 and Oriental Square will add premium office space. Between 2026 and 2027, more than 1.2 million square meters, mostly Grade A offices, will enter the market.

Hotels and serviced apartments rise on tourism and FDI growth

By Q3/2025, Hanoi had 65 hotels with a total of 10,900 rooms, down slightly as three three-star hotels were removed from the rating list.

Occupancy reached 72%, up one percentage point from the previous quarter and five percentage points year-on-year, while the average daily rate declined 3% quarter-on-quarter.

Trang said hotel performance remained strong, supported by abundant international arrivals, MICE tourism and high-quality supply.

In January-September, Hanoi welcomed 5.5 million international visitors, up 26% year-on-year, reaching 86% of the full-year target. The increase of outbound visitors pushed serviced apartment segment up with nearly 6,400 units from 65 projects.

Occupancy reached 87% and rents rose 4% year-on-year, driven by strong demand from foreign professionals and growing FDI, especially in nearby industrial provinces.

According to Trang, the inflow of FDI and improved infrastructure have made Hanoi an attractive destination for expatriates and international management brands.

Matthew Powell noted that Hanoi’s commercial real estate landscape is gradually reshaping toward greater balance. "While land in the city center remains limited, expanding inner districts and the western area are emerging as new destinations for capital and consumers," he said.

Savills forecast that from 2026 to 2028, Hanoi’s commercial property market will continue to benefit from FDI, infrastructure improvements and tourism. However, it will also face oversupply risks.

Quality, customer experience and flexibility will be the key factors determining competitiveness in the coming years, the company added.