Vietnam Real Estate and Mortgage Market Report and Forecast 2024-2032

Vietnam Real Estate and Mortgage Market Size

The Vietnam real estate and mortgage market reached approximately USD 46.30 billion in 2023. The market is projected to grow at a CAGR of 11.2% between 2024 and 2032, reaching a value of around USD 120.37 billion by 2032.

Vietnam Real Estate and Mortgage Market Outlook

• The Law on Real Estate Business was officially passed by the National Assembly of Vietnam on 28 November 2023, replacing the 2014 Law on Real Estate Business to stimulate the market.

• The General Statistics Office (GSO) reported that the real estate sector in Vietnam received a total of USD 607.6 million in FDI disbursement during the first four months of 2024, representing 9.7% of the overall FDI inflow.

• Approximately 30 cities and provinces across the country have initiated smart urban development initiatives, with notable examples being Ho Chi Minh City and Hanoi, resulting in the expansion of the market.

Vietnam Real Estate and Mortgage Market Growth

Vietnam's swift economic growth and urbanisation have played a crucial role in propelling the country’s real estate sector growth. The number of real estate companies set up in Q2 reached 6000, witnessing 23.7% y-o-y growth.  Moreover, the State Bank of Vietnam (SBV), at the end of June 2022, revealed that the total outstanding loans in the property market stood at VND2,360 trillion, a 14% y-o-y growth.

As the urban population continues to rise, the need for residential, commercial, and industrial properties has significantly increased. In 2022, 37.4 million Vietnamese individuals resided in urban areas. Additionally, the government's ongoing infrastructure development initiatives, including the development of new transportation systems and urban utilities, have contributed to making real estate investments even more appealing.

The rise of smart cities in Vietnam is fuelling the growth of the market. To adapt to the fourth industrial revolution (Industry 4.0), various cities and provinces in Vietnam are implementing smart city initiatives that leverage technology and internet-connected devices to improve urban management and boost the economy. By utilising cutting-edge technologies and data analysis from sensors, smart cities are anticipated to bring economic, environmental, and social advantages. These benefits include optimising traffic flow in real time, reducing energy consumption, and automating waste management processes.

The development of smart cities has been a top priority in key urban areas across Vietnam, such as Ho Chi Minh City, Hanoi, Da Nang, and Can Tho. Ho Chi Minh City, for instance, has outlined four main objectives to achieve smart city status by 2025, including establishing a shared database, creating a simulation research and forecasting centre for socioeconomic policies, setting up a smart administration centre, and establishing an information security centre. Hence, improved liveability, sustainability, and workability of smart cities are boosting investments in real estate and mortgages in Vietnam.

Vietnam Real Estate and Mortgage Industry Segmentation

“Vietnam Real Estate and Mortgage Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Residential

• Retail

• Logistics/Industrial

• Hospitality

• Office

Market Breakup by Value

• Premium

• Luxury

• Affordable

Market Breakup by Region

• Southeast

• Red River Delta

• Mekong River Delta

• South Central Coast

• Others

Vietnam Real Estate and Mortgage Market Share

Based on type, the market is segmented into residential, retail, logistics/industrial, hospitality, and office. The logistics/industrial segment is projected to grow at a CAGR of 12.1% between 2024 and 2032. In order to facilitate effective distribution and save transportation costs, logistics real estate facilities are frequently situated close to ports, key transportation hubs, and roads. Logistics and warehouse space are also high in demand due to the growth of e-commerce.

Leading Companies in the Vietnam Real Estate and Mortgage market

Major players are focusing on complying with the legal regulations and adopting green certification to gain a competitive edge in the market.

• Tata Consumer Products Limited

• DAT XANH GROUP

• Vingroup Joint Stock Company

• FLC Group

• Nam Long Investment Corporation

• Sun Group

• Novaland Group

• Phat Dat Real Estate Development Corporation

• Savills plc

• Avison Young (Canada) Inc.

• Others

Key Highlights of the Report

Vietnam Real Estate and Mortgage Market Report Snapshots

Vietnam Real Estate and Mortgage Market Size

Vietnam Real Estate and Mortgage Market Growth

Vietnam Real Estate and Mortgage Market Share

Vietnam Real Estate and Mortgage Companies