In Q4 2024, Hanoi's office market maintained stable supply quarter-on-quarter, with no significant changes recorded for both Grade A and Grade B offices. However, on a yearly basis, Grade A supply increased moderately by 2.55%, while Grade B supply grew higher at 2.79%. The stable growth reflects developers' confidence in Hanoi's office market, especially in strategic areas such as Hoan Kiem and Cau Giay, where demand for high-quality office space remains concentrated.
In Q4 2024, the occupancy rate of Grade A offices remained high, with a slight increase of 1.34 ppts quarter-on-quarter and a significant increase of 5.07 ppts year-on-year, driven by demand from sectors such as IT, Banking, and Logistics. This reflects tenants' shift towards high-quality office spaces in prime locations. Conversely, the occupancy rate of Grade B offices decreased by 0.46 ppts quarter-on-quarter and 0.03 ppts year-on-year, as cost-sensitive tenants prioritized affordability amid increasing supply. The market shows that mid-range offices face increasing competition and price pressure. Office rents for both Grade A and Grade B in Hanoi decreased slightly in Q4 2024.
In 2025, the city is expected to welcome 24,500 sqm of new supply. Rents are expected to increase by about 1.7% to 2.2% during 2025–2026, with vacancy rates dropping to around 23-24% as leasing demand begins to recover. From 2027, rent increases are forecast to stabilize at around 1.0% per year. During 2025–2029, Hanoi's total supply is expected to grow by 7.7% annually. Starting from 2027, vacancy rates will rise to 27-28% due to the increase in new supply. Key leasing demand will continue to come from sectors such as banking, manufacturing, information technology, insurance, and logistics. Tenants in Grade A office buildings will continue to focus on sustainability standards and flexible workspaces. Green and sustainable buildings will be an inevitable trend for new development projects.
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