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Many businesses have also called Vietnam a silver lining in economic development in Southeast Asia. Therefore, the office market would remain an attractive investment channel.

In its review on the fourth quarter of 2022, Savills Vietnam said Hanoi’s office leasing segment experienced improvements in terms of both occupancy and prices, which, experts forecast will further grow in the time ahead.

Hoang Nguyet Minh, Commercial Leasing Director of Savills Hanoi, noted that the segment has maintained its attractiveness to investors thanks to its stability, and suggested investors take into consideration office projects.

The agency said the occupancy rose by 1 percentage point quarter-on-quarter and 7 percentage points year-on-year.

The flow of foreign capital into the Vietnamese office market has pushed up investment costs and rental prices subsequently, which would be seen in Hanoi this year, Minh said.

Meanwhile, the demand is on the rise among IT and production firms, and most recently financial, banking and insurance companies, Savills said, pointing to higher requirements in environmental, social and governance (ESG) criteria.

The agency added that Hanoi expects to have at least seven green office projects by 2025, raising the supply to 276,000 sq.m.

Source: VNA