Real estate fever in Vietnam is stronger than ever with increasing attention from many domestic and foreign investors, who have recorded a record amount of investment in recent years.
Vietnam posted one of the strongest growth figures in the latest ranking in the World Competitiveness Index, recently released by the World Economic Forum. Driven by this growth and the tremendous power of attraction to its cultural riches and multitude of landscapes. The real estate market is igniting; energized by a young, educated middle class that is growing rapidly, and the ever increasing number of tourists who discover this wonderful country every year.
- Very high-end at attractive prices; from 90,000 €
- Strong rental returns of 5 to 8% Net per year.
- Strong appreciation potential.
- Huge rental demand
- No double taxation of property income
- Attractive taxation: no property tax. No inheritance fees
Dynamism and economic competitiveness; The Vietnamese economy experienced the strongest growth in ASEAN (Association of Southeast Asian Nations) in 2019. Competitiveness; infrastructure, information technology, economic stability, health sector, skills, tourism sector, biodiversity, natural resources, labor market, financial system, market size, business dynamism and capacity for innovation, national GDP to its highest level, strong economic growth, inflation control, favorable policy on foreign investments are all positive and buying signals that encourage and reassure investors around the world as the explosion and the influx of foreign direct investment in recent years.
Under supply, strong local and foreign demand, high profitability, stable currency…
After a property correction in 2015; a rather positive long-term signal, foreign investment in the Vietnamese real estate market has steadily increased. Benefiting from low prices; Hanoi being the cheapest city in Asia; the majority of mergers and acquisitions in Vietnam relate to real estate (apartments and offices) and hotels. In 2018, Vietnam welcomed 15.5 million foreign tourists, an increase of 20% compared to the previous year, while the number of domestic holidaymakers reached 80 million, up 10%.
According to JLL, a global real estate consulting company, the growth of the industry has increased demand for hotels in all regions of the country. Visa exemptions, the introduction of new direct routes and image promotion efforts have attracted many visitors.
The price per square meter in Vietnam is very competitive compared to other Asian countries and more affordable than in European countries (up to 50% cheaper). Real estate prices average $ 2,269 per square meter in central areas, while in the suburbs average $ 1,083 per square meter. If you are tempted by a luxury real estate purchase, you should know that the luxury real estate market grew by 18% in 2018 due to strong demand from wealthy locals and foreign buyers.