The Hanoi real estate market is one that has attracted numerous investments from both foreign and domestic investors. The returns were one of the best in the region. Almost all segments of the market were highly profitable, and you couldn’t go wrong.
However, as time passed, some segments became more profitable than others, while others were stagnant.
2020 is set to be yet another good year for the real estate market in Hanoi. The city is growing in every aspect; economy, population-wise, and culturally.
What follows is a summary of what we think will be a real estate trend in 2020, what drives that trend, and which segment of the market might be somewhat stagnant.
The Rise of the Middle-Class
Hanoi is the perfect city for observing the rise of Vietnam’s middle-class. According to many analysts, the middle-class population will reach around 30% in five or six years from now. That’s almost double the current 15% of all population.
And it is the middle class that will have its say in the real estate market in the upcoming years, 2020 included. That puts the real estate sector on the fast track as the development will be ongoing, at least for the foreseeable future.
The Impact of Expatriates and Newcomers
Foreign investments are playing a big role in Vietnam’s economy. Hanoi is not just in the middle of all that but is the base of operation for most new businesses that come in the country.
That means a lot of new expatriates coming in Hanoi to make a living for themselves, as their families. From what we’ve seen so far, they generate a fair demand for upscale and new housing units. Again, that points to strong growth in this part of the residential real estate market.
Real Estate Areas Set for Massive Growth
Residential real estate in Hanoi is considered to be stable throughout 2020. However, some segments seem destined for bigger growth than others.
According to many analysts, as well as Mr. Le Hoang Chau, the president of the Ho Chi Minh City Real Estate Association, flats with one or two bedrooms will be in high demand throughout 2020.
The demand is mainly driven by the locals that are flooding the city from all parts of the country. Most of them are young people, many of whom are young couples looking to make a living for themselves in the city of Hanoi.
The demand for workforce and new job openings lead to the same conclusion. The year 2020 will be a big year for the residential real estate market. That doesn’t exclude other segments of the real estate market, just the outlook for this segment seems like a sure bet.
The demand is there, the real estate developers are on board, and banks are open to such projects. Plus, all the remaining signs point to a great year in this segment of the residential real estate market. Furthermore, almost analysts concur that affordable housing will grow in 2020 more than any other part of the real estate market.