Hanoi Office Market Overview

The Hanoi office market in Q1/2026 recorded significant supply expansion, reflecting a clear redistribution of office space from the traditional core to emerging growth hubs. The market is entering a more competitive phase, where asset quality, location connectivity, and tenant demand increasingly determine occupancy performance rather than purely price-driven factors.

Market scale exceeds 6.7 million sqm, with Grade A supply leading growth

As of Q1/2026, total office supply in Hanoi reached approximately 6,753,657 sqm. Of this, Grade A accounted for 920,045 sqm, while Grade B reached 2,653,287 sqm, highlighting strong concentration in mid-tier and premium segments.

A key highlight is the significant expansion of Grade A supply outside the CBD. While the central area contributes around 160,002 sqm, non-CBD locations account for 760,043 sqm, representing approximately 82% of total Grade A stock. This structure confirms that Hanoi’s premium office supply is increasingly concentrated in western districts and new urban development zones rather than the traditional core.

Looking ahead, Grade A pipeline supply is expected to reach 348,883 sqm, indicating continued medium-term expansion driven by large-scale, high-specification developments.

Rental price levels are clearly differentiated between the central area and expansion areas

Grade A office rents in the CBD currently average 34.8 USD/sqm/month, significantly higher than approximately 29.3 USD/sqm/month in non-central areas. This gap reflects the strong value of location and brand positioning in the city center, while also highlighting the growing cost advantage of peripheral districts.

For the Grade B segment, average rental rates remain around 16 USD/sqm/month, continuing to serve as a cost-efficient option for SMEs and companies seeking optimized operating budgets.

Overall, Hanoi’s office market is becoming increasingly segmented, with the CBD maintaining its role as a brand and symbolic hub, while non-central areas are emerging as more cost-effective alternatives for tenants prioritizing efficiency.

Occupancy rates reflect clear demand segmentation across market areas

CBD occupancy stands at approximately 89%, remaining at a high level due to limited supply and stable demand from high-quality tenants.

In contrast, non-CBD areas record an occupancy rate of 80.33%, lower than the CBD, as the market is currently absorbing a significant volume of new supply. This also creates more favorable negotiation conditions for tenants in these locations.

The Grade B segment maintains an occupancy rate of around 83%, continuing to show stability and sustained demand from domestic enterprises, service companies, and representative offices.

Starlake Tay Ho Tay shaping a new grade a office hub

Starlake Urban Area in Tay Ho Tay is gradually positioning itself as a new Grade A office hub of Hanoi, playing an increasingly important role in the city’s supply expansion cycle. This area gathers several notable developments such as IFC Hanoi, Oriental Square, Parc Hanoi, Westlake Square Hanoi, Catgo Building Office, and 6th Element, contributing to the growing office stock in the northern region.

Xuan Dinh Ward currently accounts for approximately 131,436 sqm of new supply, largely driven by ongoing projects within the Starlake development. The area’s advantage lies not only in supply scale but also in its well-planned urban model, integrated infrastructure, proximity to diplomatic zones, commercial centers, and high-end residential areas. As a result, Starlake attracts high-quality tenants including FDI companies, multinational corporations, and organizations prioritizing international-standard working environments.

Compared with other fragmented expansion areas, Starlake stands out due to its synchronized development structure and long-term urban planning vision. The increasing supply here is gradually redefining Hanoi’s office geography, creating a new concentration of Grade A assets outside the traditional CBD, especially as the market continues to absorb newly completed projects.

Demand continues to be driven by high-value sectors

Office demand in Hanoi continues to be driven by high-value industries such as ICT, finance and banking, consulting, legal services, education, and professional services. These tenant groups increasingly prioritize new buildings with high operational standards and flexible expansion capacity.

FDI enterprises continue to play a key role in absorbing Grade A supply, particularly in the western districts and Tay Ho Tay area, where large floor plates and international-standard working environments are well aligned with their requirements. At the same time, domestic companies are gradually shifting from Grade B to Grade A buildings in non-CBD areas as cost differentials become more reasonable.

The “flight-to-quality” trend is also becoming more evident, as tenants are no longer focused solely on rental prices but are increasingly prioritizing green certifications, ESG standards, smart building operations, and overall workplace experience.

The market is tilting toward tenants

With a substantial future supply pipeline and relatively high vacancy rates in non-CBD areas, Hanoi is currently in a more tenant-favorable market phase, particularly within the Grade A segment.

Tenants now have greater leverage in negotiating rental prices, rent-free periods, and fit-out conditions, especially as landlords intensify competition to improve occupancy levels. This creates significant advantages for companies considering office upgrades or expansion plans during the 2026–2027 period.

Hanoi and Ho Chi Minh City: differences in development structure

Compared to Ho Chi Minh City, Hanoi has a smaller total office supply but a more dispersed distribution toward non-central areas, while Ho Chi Minh City remains more concentrated in the CBD core and the Thu Thiem expansion zone. Rental prices in Hanoi are significantly lower, but non-CBD vacancy rates are higher, creating more negotiation opportunities for tenants.

Market outlook: competition is shifting from location to quality

The Hanoi office market is gradually moving from location-based competition toward asset quality, operational standards, and user experience. Factors such as green certifications, smart buildings, ESG compliance, and flexible space design are becoming increasingly important in leasing decisions.

Notably, the dominance of Grade A supply in non-CBD areas indicates that a “widened CBD” model is becoming more evident in Hanoi, similar to trends seen in other regional metropolitan cities.

With total supply reaching 6.75 million sqm, the Hanoi office market in Q1/2026 is entering a clear restructuring phase, where the western corridor and expanded inner-city areas are emerging as new growth drivers. As supply continues to increase and tenant demand shifts toward greater flexibility, competition is expected to intensify based on quality rather than traditional location advantages.

Grade A office segment in Hanoi continues to record positive growth momentum, with total supply reaching 920,045 sqm, an increase of 13.53% YoY. This growth is closely linked to a new cycle of high-quality supply additions, particularly in Q1/2026 when the market welcomed four new developments, including Tien Bo Plaza in the CBD, as well as IFC Hanoi, Oriental Square, and The Marc 88 in non-CBD areas.

The simultaneous emergence of new supply in both central and expansion areas carries important implications for the market structure. Tien Bo Plaza adds a rare source of Grade A supply within the CBD, where land availability is increasingly limited, while IFC Hanoi, Oriental Square, and The Marc 88 further strengthen the role of the western corridor and new urban areas as key growth drivers of the premium segment.

The entry of these projects not only expands total supply scale but also elevates overall asset quality, as most developments are positioned to modern Grade A standards, emphasizing green building criteria, smart operations, and flexible working environments. According to Maison Office, this clearly reflects a trend where new supply is shifting toward higher quality while gradually expanding from the central core to well-planned urban zones.

In the short term, additional supply may create absorption pressure in certain non-CBD areas. However, in the long term, it provides a solid foundation for market expansion, product upgrading, and better alignment with the growing demand from FDI enterprises, multinational corporations, and tenants increasingly shifting toward higher-quality office spaces.

Grade B office segment in Hanoi continues to play a foundational role in the market, with total supply reaching 2,653,287 sqm, an increase of 4% YoY. This modest growth reflects the stable nature of the segment, as the market has not recorded significant new supply additions, while leasing demand remains relatively resilient.

Unlike the Grade A segment, which is currently in a strong expansion cycle, Grade B supply is growing in a more controlled manner, focusing on maintaining liquidity and meeting real market demand. It continues to account for a large proportion of Hanoi’s office stock, serving as the backbone for domestic enterprises, mid-sized service companies, technology firms, and representative offices.

According to Maison Office, Grade B supply is widely distributed across key areas such as Cau Giay, Dong Da, Ba Dinh, Nam Tu Liem, and the expanded inner-city zones, providing strong coverage and flexibility to meet diverse leasing requirements. In the context of businesses increasingly prioritizing operational efficiency and cost control, this segment continues to balance financial optimization with adequate workspace quality.

The slight increase in Grade B supply also reflects a broader market trend shifting toward higher-quality asset development, while the mid-tier segment remains stable and demand-driven rather than supply-expansion driven. This reinforces its role as an important liquidity buffer within Hanoi’s office market structure.

Grade A office segment in Hanoi CBD continues to maintain its core market position, with average rental rates reaching 34.8 USD/sqm/month, a slight increase of 0.6% YoY. Price levels in the central area remain stable, reflecting the sustained attractiveness of strategic-location assets characterized by limited supply and strong brand value.

Occupancy rate stands at 89%, up by 1 percentage point compared to the same period last year, indicating that demand in the CBD remains resilient, particularly from financial institutions, legal firms, consulting companies, international organizations, and FDI tenants prioritizing central locations. In the context of no new Grade A supply entering the CBD in 2026, this absorption level further confirms the stability of underlying demand in the core area.

According to Maison Office’s observations, the absence of new supply in the short term helps maintain relative scarcity in the CBD, thereby supporting stable rental levels and occupancy performance compared to many expansion areas. At the same time, this reinforces the continued preference of businesses for central districts when selecting headquarters for branding and corporate positioning purposes, even as emerging office hubs outside the CBD become increasingly competitive.

Grade A office segment in non-central areas (Non-CBD) continues to be the main growth driver of the Hanoi market, with average rental rates reaching 29.3 USD/sqm/month, an increase of 3% YoY. This trend reflects improving demand for Grade A buildings outside the CBD, while reinforcing the competitive position of western districts and expanded inner-city areas in corporate location strategies.

Occupancy rate reaches 80.33%, up 6.4% YoY, indicating that absorption of new supply is improving despite continuous project additions to the market. In Q1/2026, new developments such as IFC Hanoi, Oriental Square, and The Marc 88 contributed to Grade A non-CBD supply reaching approximately 348,883 sqm, accounting for a significant share of total market expansion.

This growth momentum is expected to continue into the 2027–2028 period, supported by a pipeline of notable future projects including Catgo Building Office, Parc Hanoi, Westlake Square, B3CC2A, Detech, Time Square Hanoi, and Capital One. Future supply is distributed across multiple office clusters such as Tay Ho Tay, Cau Giay, Hoang Mai, and expanded inner-city areas, further strengthening the multi-polar development trend of the Hanoi office market.

According to Maison Office’s observations, the simultaneous improvement in rental rates and occupancy, despite ongoing supply expansion, is a positive signal of strong absorption capacity in non-CBD areas. This also confirms the role of these districts as a long-term growth engine for the Hanoi office market.

New office supply in Hanoi is showing a clear concentration in Xuan Dinh Ward and Yen Hoa Ward, which are currently leading new supply growth with approximately 131,436 sqm and 119,947 sqm respectively. This development reflects a broader shift of Grade A supply toward areas with larger land availability, better infrastructure development, and stronger expansion potential compared to the traditional central districts.

In Xuan Dinh, growth momentum is primarily driven by the Starlake Tay Ho Tay urban area, where a new Grade A office cluster is gradually taking shape with large-scale, high-standard developments. Meanwhile, Yen Hoa continues to strengthen its position as a western office hub, benefiting from a well-established ecosystem of technology, finance, and professional service companies, as well as strong connectivity along the Cau Giay – Pham Hung corridor.

According to Maison Office’s observations, the concentration of new supply in these two areas not only expands overall market scale but also accelerates the multi-polar transformation of Hanoi’s office market. In the medium term, Xuan Dinh and Yen Hoa are expected to continue playing a leading growth role, while gradually reshaping the map of premium office supply in the capital.

Before the administrative boundary adjustment, the Hanoi office market operated under a relatively centralized model, where the Hoan Kiem – Ba Dinh area served as the traditional CBD core. This zone led the market in high-quality supply, premium rental levels, and demand from international tenants. At this stage, the market structure was still heavily centered on the traditional core, with expansion mainly spreading westward but without clearly defined independent office hubs.

Supply concentrated in the CBD and western expansion areas

During this period, Grade A office supply was primarily concentrated in the central area, which hosts landmark buildings and the headquarters of banks, international organizations, law firms, and multinational corporations. Hoan Kiem and Ba Dinh were the two leading districts, functioning as the administrative and financial core of the capital.

In parallel, the western area including Cau Giay, Nam Tu Liem, and My Dinh began to emerge as an expanding supply zone, particularly with large-scale office developments along the Pham Hung – Duy Tan – Cau Giay corridor. However, before the merger, this area mainly played a supporting satellite role to the CBD rather than functioning as an equal growth pole.

As a result, the market structure was essentially dual-centered, but growth momentum still revolved around the traditional core.

Rental prices stratified by location

The market recorded a clear rental price differentiation between central and expansion areas. Grade A buildings in the CBD consistently maintained the highest price segment, while western areas offered more competitive rental levels, providing suitable options for companies seeking larger spaces at optimized costs.

The typical rental range across the market was 16 – 35 USD/sqm/month, with the main variation driven by location, asset quality, and building operational standards.

This pricing stratification clearly reflects the pre-merger market characteristics: the central area represented brand value and corporate image, while expansion zones competed more on cost efficiency.

Tenant structure dominated by high-value industries

Pre-merger leasing demand was primarily driven by finance, insurance, real estate, legal services, international organizations, ICT, and professional consulting sectors. Most large-scale tenants prioritized CBD locations to leverage central positioning, connectivity, and brand visibility.

Meanwhile, the western area began attracting technology firms, outsourcing companies, and expanding enterprises, particularly around the Duy Tan – Cau Giay cluster. However, this demand stream still played a supplementary role within a CBD-centric structure.

This can be considered a “center-led” market phase, where leasing demand remained heavily anchored to the traditional central business district.

Supply expansion axis radiating from the traditional core

Supply growth during this period mainly followed a radial expansion from the CBD toward the west, rather than forming a clear multi-polar structure as seen today. New projects were largely developed along transport corridors and new urban developments extending outward from the central core.

This resulted in a highly concentrated market with low supply dispersion, where competition was still largely determined by location advantages.

According to Maison Office’s observations, this was a phase where “central address” remained the most important competitive advantage for office buildings, while ESG standards, green certifications, and smart building features had not yet become key differentiators as they are in the current cycle.

Key characteristics of the pre-merger market

Overall, the Hanoi office market before the merger can be identified by four main characteristics:

• Key areas: Hoan Kiem, Ba Dinh, Cau Giay
• Rental range: 16 – 35 USD/sqm/month
• Main tenant structure: finance, legal, international organizations, ICT
• Supply development axis: expansion from the traditional core toward western Hanoi

This structure laid the foundation for the post-merger transition phase, where the market gradually moved from a centralized model to a more multi-polar configuration, with emerging growth hubs such as Xuan Dinh and Yen Hoa becoming increasingly prominent.

After the administrative merger, the Hanoi office market has entered a more clearly defined restructuring phase, gradually shifting from a centralized model around the Hoan Kiem – Ba Dinh core to a multi-polar structure. In this new configuration, areas such as Xuan Dinh and Yen Hoa are emerging as key drivers of new supply growth. This change is not only administrative in nature but also reflects a fundamental shift in the capital’s office development map.

If the central area previously played an almost absolute role in driving Grade A supply, the post-merger period has seen the formation of an increasingly evident “expanded CBD” model, where emerging office clusters now share growth responsibilities with the traditional core.

Supply shifting strongly toward new growth poles

One of the most notable post-merger changes is the clear relocation of Grade A supply away from the traditional CBD. Xuan Dinh Ward leads new supply with approximately 131,436 sqm, while Yen Hoa Ward records around 119,947 sqm, making them the two most prominent emerging office clusters in the market.

Growth in Xuan Dinh is driven by the Starlake Tay Ho Tay urban area, which gathers a series of high-quality office projects and is gradually forming a new office hub for Hanoi. Meanwhile, Yen Hoa continues to strengthen its role as a western office nucleus, benefiting from a mature ecosystem of technology firms, professional services, and developed infrastructure connectivity.

This trend indicates that new supply is no longer expanding in a linear spillover from the traditional core, but is instead developing into a clearly multi-polar structure.

Stable pricing structure but increasingly differentiated competition

Following the merger, rental prices remain generally stable; however, competition between areas has become more pronounced. The central core continues to command premium pricing due to its location advantages and symbolic value, while expansion areas are becoming more competitive thanks to modern buildings with CBD-level quality but more cost-efficient pricing.

The typical rental range across the market remains between 16 – 35 USD/sqm/month, but the key differentiation now lies in asset quality and operational experience rather than location alone.

This reflects a clear shift in post-merger competition from location-based competition to quality-based competition.

Tenant structure becoming more diversified

Previously, demand was concentrated in finance, legal services, and international organizations. Post-merger, the tenant mix has become more diversified, with a growing share of ICT companies, FDI enterprises, consulting firms, technology companies, and fast-growing businesses.

In particular, areas such as Xuan Dinh and Yen Hoa are attracting tenants requiring large floor plates, ESG-compliant buildings, modern working environments, and long-term expansion capacity.

According to Maison Office, leasing demand after the merger is no longer purely driven by “central addresses” but increasingly by the balance between cost efficiency, connectivity, and workspace quality.

Supply development shifting from linear expansion to multi-polarization

A key structural change is the transformation of supply development from a linear expansion model radiating outward from the CBD toward the west, into a multi-polar model where several supply clusters coexist and complement each other.

Xuan Dinh represents development driven by integrated urban planning. Yen Hoa represents growth driven by an established business ecosystem. Meanwhile, the traditional CBD continues to play its role as the core of branding and corporate image.

This structure creates a more flexible market and reduces long-term dependence on the central area for growth.

Post-merger market tilts toward tenants

The increase in new supply in expansion areas, along with higher vacancy levels outside the CBD, provides tenants with greater negotiation leverage. Companies now have more options in terms of location, asset quality, and leasing conditions, particularly in the Grade A segment.

More flexible lease terms, fit-out support, rent-free periods, and improved negotiation conditions are becoming more prominent features of the post-merger market.

From a market perspective, this indicates that Hanoi is gradually moving toward a more tenant-favorable environment in certain segments, rather than a landlord-driven market as in the past.

Key characteristics of the post-merger market

Overall, the Hanoi office market after the merger can be characterized by four key elements:

• Key areas: Hoan Kiem Ward, Ba Dinh Ward, Xuan Dinh Ward, Yen Hoa Ward
• Rental range: 16 – 35 USD/sqm/month
• Key tenant structure: Finance, real estate, ICT, FDI, consulting, technology companies
• Supply development axis: Multi-polarization, expanding from the traditional core toward Tay Ho Tay and western Hanoi 

Compared to the pre-merger period, the most significant change is not price levels but market structure from a centralized model to a multi-polar configuration. This also forms the foundation for Hanoi’s office market development trajectory in the 2026–2030 period.