Hanoi Office Leasing Market Outlook 2025
The year 2025 is expected to mark a period of recovery and stable development for the Hanoi office market after the fluctuations of the previous phase. With an increase in high-quality supply, a shift in leasing demand from key economic sectors, and the trend of prioritizing sustainable and modern workspaces, the capital’s office market promises to have several notable highlights.
See more: HCMC Office Leasing Market Outlook 2025
Table of Contents
1. Overview of the Hanoi Office Market in 2024
In 2024, the Hanoi office market saw the addition of around 35,000 m² of new supply, primarily from projects located in the non-central areas and the western part of the city. This increase in supply provided more options for businesses, but it also intensified competition among building owners to attract tenants.
In terms of rental prices, by the end of 2024, the average rental rate across the city saw a slight increase of approximately 0.2%, reaching around USD 32/m²/month. To quickly fill vacant spaces, many landlords have been flexible in negotiating rent and offering incentives such as rent-free periods or support for interior fit-out costs.
Furthermore, the total net absorption of office space in 2024 reached around 40,400 m², driven primarily by large corporations with significant office space needs. These companies capitalized on the slower market growth to secure competitive rental rates while benefiting from attractive terms. This not only helped tenants save on operating costs but also supported the continued development of Hanoi’s office market as it heads into 2025 with fresh expectations.
2. Potential for Growth in the Hanoi Office Market
Hanoi continues to solidify its position as the political and economic hub of Vietnam, with strong foreign direct investment (FDI) inflows and high business confidence from the European business community. The demand for office spaces is primarily concentrated in Grade A office buildings and green-certified buildings such as LEED, WELL, and Green Mark, serving key industries like Finance, Banking, Technology, and Manufacturing.
In addition to central areas like Hoan Kiem and Ba Dinh, emerging districts like Tay Ho and Western Hanoi are gaining increasing attention. The development of infrastructure, coupled with a range of new projects offering tens of thousands of square meters of office space for lease along with attractive incentives, is creating favorable conditions for businesses.
It is anticipated that after 2025, as the supply stabilizes, rental prices and occupancy rates will see significant improvements, paving the way for the sustainable development of Hanoi’s office market.
3. Forecast for Hanoi Office Market in 2025
The Hanoi office market in 2025 is expected to enter a phase of recovery and steady growth, driven by improved leasing demand and new supply.
3.1 New Supply Trends
Hanoi is projected to welcome an additional 24,500 m² of new office space in 2025, primarily concentrated in the Western districts and central areas. The total supply in the market from 2025 to 2029 will increase by 7.7% annually. However, with the anticipated significant rise in supply from 2027 onwards, the vacancy rate may reach 27-28%, after decreasing to about 23-24% in 2025 due to the recovery of leasing demand.
Notably, the Starlake urban area in Western Hanoi stands out as a strategic development center with modern infrastructure and plans to become the city’s new commercial and business hub. Although the development plans for this area are still ongoing, new high-quality office projects have already attracted significant attention from large enterprises. The substantial increase in office supply in this area is creating strong growth momentum for Hanoi’s office market, positioning the Western region as a key economic center in the near future.
3.2 Tenant Demand & Preferences
In 2025, the Hanoi office market is expected to continue seeing steady growth in leasing demand, primarily from key sectors such as banking, information technology and telecommunications (IT), insurance, manufacturing, and logistics. IT is forecasted to lead the demand, accounting for 24% of the total transaction area, while finance, banking, and insurance sectors follow closely with over 20%. Both sectors are driving the demand for modern office spaces that meet the requirements of growing businesses.
The trend in office leasing in Hanoi is shifting strongly toward Grade A office buildings, with a preference for spaces that meet international standards such as green certifications, environmentally friendly, and energy-efficient. “Green” office buildings not only align with companies’ sustainability goals but also provide modern working environments that appeal to the young, dynamic, and creative workforce, which makes up a large portion of Hanoi’s labor market.
Additionally, large corporations are expanding their office spaces with high standards for design, amenities, and flexibility. This is in response to the growing demand for new work models, improving brand image, and increasing operational efficiency. Flexible workspaces with creative solutions are becoming a top priority, helping businesses build organizational culture and attract and retain talent.
3.3 Rental Prices & Competition Levels
Rental prices in Hanoi are expected to continue rising slightly in 2025, with an increase of about 1% for the entire city. Grade A office spaces will continue to command the highest rental rates, currently ranging from USD 29-32/m²/month. The anticipated growth in rental prices is driven by improved occupancy rates in newly completed office buildings, particularly in central areas where vacancy rates are steadily decreasing.
However, competition will intensify for existing buildings that have not been upgraded or do not meet high-quality standards, as tenants increasingly prefer modern office spaces with environmentally friendly amenities. Incentive policies such as discounted rent and service offerings will likely become common tools to attract tenants in the coming period.
3.4 Technology & Future Office Models
The development of technology is reshaping the office leasing market in Hanoi, with smart and flexible workspaces becoming more prevalent. Companies are increasingly investing in offices integrated with modern technologies such as IoT, data analytics, and smart sensors to enhance management efficiency and user experience.
Furthermore, hybrid office models—combining on-site and remote workspaces—are becoming a prominent trend. This not only reduces operating costs but also meets the preferences of many businesses seeking to enhance productivity and maintain work-life balance. Future office buildings will need to focus on innovating workspace designs to cater to the young, dynamic workforce, especially in the rapidly growing technology and finance sectors.
Overall, the Hanoi office market in 2025 is expected to achieve a balance between supply and leasing demand, driven by the trend towards high-quality, sustainable, and modern buildings. The adoption of technology and new office models will play a crucial role in enhancing the appeal of office buildings and providing sustainable growth momentum for the capital’s office market.
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