Hanoi Office Market 2024 | Abundant supply with steady rental price

In 2023, Hanoi office market faced many fluctuations and challenges due to the impact of the Covid-19 pandemic. However, thanks to the efforts of the government, the Hanoi office leasing market began to recover and showed positive signs in 2024.

I. Hanoi Office Market in 2023

In the latest update, at the beginning of Q1/2024, Hanoi has significant growth in the supply of premium office spaces, achieving nearly a 2% increase compared to the same period in 2023.

1. Office supply in Hanoi

In Hanoi office market, the first quarter of 2024 saw a significant increase in supply with a large amount of new office space being leased, up 12% compared to 2022. The Grade A segment took the lead with nearly 100,000 sqm, primarily located in the Me Tri, Tay Ho, and Cau Giay areas. Grade B offices also contributed nearly 70,000 sqm, mainly in the Thanh Xuan and Cau Giay areas.

By Q3/2023, the Hanoi office market saw a slight quarterly increase of 1% and a yearly increase of 2%, bringing the total office leasing area to 2.16 million sqm NLA. 

This was driven by the launch and operation of Lotte Mall West Lake Hanoi, which added 23,000 sqm NLA and contributed to the growth of Hanoi’s office supply. The Western area accounted for 41% of the market share and made the most significant contribution to the diversity of supply.

Despite the growth in office supply, the demand for office leasing has slightly decreased due to the impact of the Covid-19 pandemic and the overall economic situation. Information Technology, Finance-Banking, and Services fields remain the highest in demand. Additionally, the trend towards flexible office spaces, such as co-working spaces and serviced offices, is becoming increasingly popular, especially among startups and small businesses.

2. List of new office buildings in 2024

In 2024, the office market in Vietnam will see the introduction of many new office buildings, adding to the market’s supply. Below are some outstanding projects in Hanoi such as:

2.1 Grand Terra Building – 36 Cat Linh

Grand Terra is a distinctive office and commercial complex inspired by Vietnam’s terraced rice fields, offering a unique, luxurious, and modern aesthetic.

Conveniently located near the subway system, the building provides international standard office spaces with numerous amenities, promising to be a top choice for businesses. The project is expected to be completed in Q4/2023 and will become operational in 2024.

2.2 Taisei Hanoi Office Tower

The Taisei Hanoi Office Tower is the first project in Hanoi by the Taisei Corporation, featuring 2 retail floors and 18 office floors, with a total leasing area of 22,500 sqm, expected to be completed in Q2/2024.

This office building is designed and constructed by VINATA International, with development and management by Taisei Development Hanoi Company Limited.

2.3 Heritage West Lake

The Heritage West Lake is a high-end residential and Grade A international standard office leasing complex, expected to be operational in Q4/2024. It is considered one of the office and service buildings with a prime location by West Lake, offering an ideal workspace with lake views, perfectly blending work and relaxation.

2.4 My Dinh Pearl

This project is developed by SSG Group, one of the leading real estate corporations in Vietnam with over 15 years of experience. My Dinh Pearl has known as “The Green Gem in the Heart of Hanoi,” thanks to its luxurious and modern design by ARCHETYPE GROUP, blending Singaporean style with traditional Vietnamese elements. This creates a high-class workspace with a full range of modern amenities and services.

2.5 Shilla Tower

Shilla Tower project is a complex featuring a 5-star hotel, offices, and a shopping center, with a total investment of 9,000 billion VND, developed by Daewoo E&C at the B3CC1 plot in the StarLake urban area, Hanoi.

The project includes two 35-story towers and three basements, expected to be completed in 2024. It is considered one of the most beautifully located plots in the area, promising to become a prominent landmark in West Lake West.

2.6 Hanoi Hilton West

Located prominently in the heart of Hanoi, Hanoi Hilton West is known as a project invested and developed by Dai Hoang Long Trung Yen Company Limited, featuring 3 basements and 15 upper-floors, with a total area of approximately 62,000 sqm. The project is expected to be completed and handed over in the third quarter of 2024, promising to meet the growing demand for modern facilities in the capital.

2.7. TNR Goldmark City

TNR Goldmark City is a project developed by TNR Holdings, comprising 9 buildings, each 40 stories high. The complex offers a variety of amenities including a shopping center, schools, supermarkets, stores, and entertainment areas, catering to both living and working needs.

With its prime location, modern design, and diverse facilities, TNR Goldmark City is set to be an ideal headquarters location for many domestic and international businesses.

2.8. Tien Bo Plaza

Tien Bo Plaza is a five-star complex that includes a hotel, serviced apartments, rental offices, and a shopping center, located in the cultural and political heart of Hanoi. Designed as a mini-city, it features a vibrant and green environment, offering luxurious shopping and office spaces with international standards to enrich urban life in the capital.

2.9. Capital Elite

Capital Elite is a high-end apartment and office project located at 18 Pham Hung, Hanoi, developed by Indochine Real Estate Joint Stock Company. The project features a tower with 4.5 basements and 32 upper floors. With its strategic location, modern architecture, and premium amenities, Capital Elite promises to deliver a luxurious living and working space, redefining the standard of high-end living in the My Dinh area.

2.10 Oriental Square

Oriental Square is a premium office building located in the heart of the Starlake urban area, Hanoi, expected to be operational by December 2025. 

The project includes 3 basements and 16 upper floors, with a total floor area of 28,652 sqm. Featuring the international LEED Gold green certification, Oriental Square offers office spaces and a variety of amenities, ranging from complimentary multifunctional bathrooms to rooftop gardens and a shopping center.

Theses buildings not only provide high-quality workspace but also enrich the office supply in the market, meeting the growing demand of both domestic and international businesses.

3. Rental prices & occupancy rates of offices in Hanoi

In Q3 2023, office rental prices in Hanoi increased with a 2% rise both quarterly and annually, reaching a rate of 513,000 VND/sqm/month. This growth was mainly driven by the rental prices of Grade A offices, which increased by 2% over the quarter to 824,000 VND/sqm/month, indicating a strong surge in demand for premium office spaces.

Significantly, Q3 2023 was a milestone as it recorded the highest total area of office space leased since 2020, at 44,500 sqm. This increase reflects the market’s recovery and the growing attractiveness of the office sector in Hanoi.

II. Hanoi office market 2024 – 2026

Hanoi office market is anticipated to experience significant fluctuations and developments during the 2024-2026 period.

1. Office Supply in Hanoi 2024-2026

In the 2024-2026 period, Hanoi office market has an increase in supply with over 200,000 sqm of office space, from 77% being Class A offices. This reflects a focus on developing high-quality office spaces to meet the increasing demands of businesses.

New projects like 27-29 Ly Thai To, Grand Terra, and Tien Bo Plaza have a positive impact on green office spaces by providing around 68,400 sqm by the end of 2025. This not only boosts the supply but also reflects the increasing eco-friendly office spaces, meeting the demands of businesses for sustainable real estate.

2. Rental prices and office leasing capacity in Hanoi 2024 – 2026

By the end of 2026, the Class A and B office market in Hanoi is expected to expand by an additional 220,000 sqm, equivalent to a 13% increase from the current level. Office rental prices are anticipated to fluctuate from stable to a decrease of 1% in 2026, similar to the situation in Ho Chi Minh City. The expected office consumption in Hanoi is projected to reach 54,600 sqm during the period from 2023 to 2026.

The launching of many new major projects from now until 2026, especially in the Class A office buildings, is expected to be pressure on rental prices and capacity. 

The entry of these towers is anticipated to reduce the occupancy rates of Class A and B projects to around 85%, leading to a slight decrease in rental prices. This could create opportunities for businesses looking for stable office space and competitive rental rates during this period.

The rental prices and occupancy rates of the office leasing market in Hanoi are anticipated to remain stable or slightly decrease, providing favorable conditions for businesses in search of suitable office spaces. This stability also helps businesses to easily plan and manage office leasing costs, while optimizing work efficiency.

III. Summarize

The office rental market in Hanoi has a strong development with the entry of new projects that contribute to expanding the supply. Forecasting and understanding trends are crucial for businesses and investors. By the end of 2026, with a significant growth in floor area and new opportunities from large-scale projects, the Hanoi office rental market will become an attractive destination for businesses seeking modern and fully equipped office spaces.

Participation in many projects create pressure on rental prices and capacity, requiring flexibility and smart strategy from businesses. The current trend towards green building and commitments to environmental, social, and governance (ESG) standards is also significant, reflecting businesses’ increased focus on sustainability goals and social value.

The Hanoi office market is currently undergoing a critical phase, faces both opportunities and challenges. However, it promises to evolve in a diverse and sustainable manner in the future. It’s crucial for businesses and investors to adjust their strategies, tap into unique opportunities and align with the development of the Hanoi office market.

Bui Duc Huy

Editor and content team manager at Maison Office.

With over 5 years of experience in consulting and extensive content editing in the real estate services and interior design field. Sharing valuable information with customers, partners, and attracting millions of views.