The demand for office space is increasing
Despite the challenges post-pandemic, numerous international enterprises persist in expanding and establishing new offices in Vietnam, invigorating the office rental market. Several high-quality projects have been introduced, and the office landscape in Hanoi is currently undergoing differentiation across various districts.
Prime Office Location in the City Center
Office buildings in the central areas of the capital city continue to be the top priority for businesses due to their concentration of government offices, bank headquarters, and major multinational corporations. This enhances connectivity and convenience for tenants. However, limited supply and challenges with the height of new projects in Hoan Kiem are impacting the search for suitable spaces.
Post-Covid Office Trends
Following the Covid-19 pandemic, there is a heightened demand for well-equipped offices and comfortable working environments. Many businesses are transitioning to a hybrid work model. Therefore, in addition to factors like location and price, businesses are seeking office spaces with a square layout, buildings offering various amenities, and designs emphasizing the needs and mental well-being of employees.
Currently, the central city area has 238,800 square meters of Grade A and B office space, with several new projects set to increase the supply in the near future. While the allure of central offices is undeniable, projects in the inner city and the western part of Hanoi are increasingly competitive, boasting modern designs and high-quality construction.
Inner City and Western Areas Offer More Choices
The inner city and western Hanoi are witnessing vibrant development with numerous high-quality projects. The supply of office space in Hanoi is expected to see substantial growth in the next 3-5 years, focusing on Grade A and B offices in Ba Dinh, Tay Ho, and the western part of Hanoi. This region also promises lower rental prices compared to the central Hoan Kiem district.
The office rental market in the capital is diversifying, providing many options for businesses. Central offices are suitable for small and medium-sized enterprises, while the inner city and western areas cater to companies with larger space requirements. Depending on scale and needs, businesses can find suitable office spaces.
“At the event ‘Update on the Hanoi Office Market – Trends and Main Forecast’ held in mid-June, experts revealed that in the early months of 2022, the demand for expansion in the Vietnamese market by foreign businesses surged, with an estimated 8,500 new businesses established in Vietnam.” This demonstrates that, alongside policies attracting foreign investment, Saigon and Hanoi remain attractive destinations for many enterprises to build their “empires.”
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