13 views Economic recovery; Improved legal environment; Application of digital transformation in management and operation; Product development/business diversification; Boosted public investment will be the five important driving forces to boost the real estate market in 2025…
The results of a recent survey of real estate businesses by Vietnam Report show that: up to 73.3% of the total number of businesses surveyed believe that the driving force shaping the development of the real estate industry in 2025 is the recovery speed of the economy .
Specifically, after the difficult period of 2022-2023 with inflation, high interest rates and tight credit, the economy has initially recovered with a growth rate of 7.09% in 2024. Since 2025, the Government has set a growth target of 8% and is aiming for double-digit growth in the following years. Along with high growth, the economy will have to accept higher inflation, the Government has also adjusted the inflation target to 4.5% in 2025. Accordingly, macroeconomic factors such as interest rates and exchange rates will also be somewhat affected, increasing pressure on capital flows into real estate.
On the positive side, strong economic growth is often accompanied by an increase in per capita income, thereby boosting real housing demand, especially in the mid-range and low-cost segments in large cities such as Hanoi and Ho Chi Minh City. In addition, the expected continued FDI inflows into industrial parks will lead to demand for housing for workers, heating up the industrial real estate and social housing segments.
The second driving force for real estate businesses is the improved legal environment ( selected by 62.2% of businesses). Removing legal obstacles has been seen as urgent when all three sets of Housing Law, Real Estate Business Law, and Land Law were amended and applied early from August 2024, marking a major turning point for the real estate market.
In the short term, the effectiveness of the amended laws is most evident in resolving legally stalled projects – one of the main reasons for the severe decline in real estate supply in the 2022-2023 period. The amended Land Law has simplified the process of land allocation, land lease and land use conversion, helping real estate businesses quickly complete procedures to bring projects to the market.
According to preliminary statistics, in 2024, 210 projects nationwide had their obstacles cleared, most of which were housing projects in large cities such as Hanoi, Ho Chi Minh City and Da Nang. The amended Housing Law supplements more flexible regulations on social housing, encouraging businesses to participate in developing this segment through tax and credit incentives. Meanwhile, the Real Estate Business Law requires investors to complete infrastructure before selling products and to be transparent about project information, helping to minimize risks for buyers and restore confidence in the market.
In the long term, the revised laws promise to bring structural changes to Vietnam’s real estate market. The new Land Law expands access to land for foreign investors and overseas Vietnamese, while providing clearer regulations on land use rights auctions, helping to limit speculation and price manipulation. This will not only increase financial resources for the market but also create healthy competition, bringing real estate prices to more reasonable levels in the future.
It is expected that from 2026 onwards, when these regulations are truly absorbed, the market will witness an increase in supply from large joint venture projects with foreign partners, especially in the industrial and resort real estate segments. The revised Housing Law, with a focus on developing social housing, is expected to solve the housing problem for low-income people, a segment that accounts for 60-70% of demand in large cities. If effectively implemented, by 2030, the whole country must complete 995,445 apartments to achieve the goal of building at least 1 million social housing apartments for low-income people and workers in industrial parks.
Another driving force for the real estate market to have a high rate of selection in the next 12 months is the increased public investment and improved infrastructure in 2025. Along with the economic growth target, the total planned public investment capital is VND 878,316 billion, a record number recorded to date. Current key public investment projects include the North-South Expressway, Long Thanh Airport, the beltway system and metro lines in Hanoi and Ho Chi Minh City. In addition, there are projects being planned such as the construction of a nuclear power plant and the North-South high-speed railway.
“Real estate projects will benefit when infrastructure projects are completed and put into operation. Accordingly, urbanization and industrialization will be inevitable trends, forming around highways and beltways, leading to demand for both residential and industrial real estate. In addition, when public investment projects are well planned, it will be a solution for the sustainable development of the real estate market, limiting virtual fever, speculation, and supply-demand imbalance in big cities,” said Mr. Phung Hoang Co, Vice President of Vietnam Report.
Source: https://vneconomy.vn/nam-dong-luc-thuc-day-thi-truong-bat-dong-san-2025.htm
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<p class="detail__summary">Economic recovery; Improved legal environment; Application of digital transformation in management and operation; Product development/business diversification; Boosted public investment will be the five important driving forces to boost the real estate market in 2025…</p>
<figure class="detail__avatar"><img decoding="async" class="img-fluid" src="https://media.vneconomy.vn/w800/images/upload/2025/02/26/anh-chup-man-hinh-2025-02-26-luc-17-07-05.png" alt="Illustration" /></figure>
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<p>The results of a recent survey of real estate businesses by Vietnam Report show that: up to 73.3% of the total number of businesses surveyed believe that the driving force shaping the development of the real estate industry in 2025 is <strong><em>the recovery speed of the economy</em></strong> .</p>
<p>Specifically, after the difficult period of 2022-2023 with inflation, high interest rates and tight credit, the economy has initially recovered with a growth rate of 7.09% in 2024. Since 2025, the Government has set a growth target of 8% and is aiming for double-digit growth in the following years. Along with high growth, the economy will have to accept higher inflation, the Government has also adjusted the inflation target to 4.5% in 2025. Accordingly, macroeconomic factors such as interest rates and exchange rates will also be somewhat affected, increasing pressure on capital flows into real estate.</p>
<p>On the positive side, strong economic growth is often accompanied by an increase in per capita income, thereby boosting real housing demand, especially in the mid-range and low-cost segments in large cities such as Hanoi and Ho Chi Minh City. In addition, the expected continued FDI inflows into industrial parks will lead to demand for housing for workers, heating up the industrial real estate and social housing segments.</p>
<figure class="image-wrap align-center-image"><img decoding="async" src="https://media.vneconomy.vn/w900/images/upload/2025/03/24/anh-chup-man-hinh-2025-03-24-luc-21-29-33.png" alt="Five driving forces of the real estate market in 2025 - Photo 1" data-original="https://media.vneconomy.vn/images/upload/2025/03/24/anh-chup-man-hinh-2025-03-24-luc-21-29-33.png" /></figure>
<p>The second driving force for real estate businesses is <strong><em>the improved legal environment</em> (</strong> selected by 62.2% of businesses). Removing legal obstacles has been seen as urgent when all three sets of Housing Law, Real Estate Business Law, and Land Law were amended and applied early from August 2024, marking a major turning point for the real estate market.</p>
<p>In the short term, the effectiveness of the amended laws is most evident in resolving legally stalled projects – one of the main reasons for the severe decline in real estate supply in the 2022-2023 period. The amended Land Law has simplified the process of land allocation, land lease and land use conversion, helping real estate businesses quickly complete procedures to bring projects to the market.</p>
<p>According to preliminary statistics, in 2024, 210 projects nationwide had their obstacles cleared, most of which were housing projects in large cities such as Hanoi, Ho Chi Minh City and Da Nang. The amended Housing Law supplements more flexible regulations on social housing, encouraging businesses to participate in developing this segment through tax and credit incentives. Meanwhile, the Real Estate Business Law requires investors to complete infrastructure before selling products and to be transparent about project information, helping to minimize risks for buyers and restore confidence in the market.</p>
<p>In the long term, the revised laws promise to bring structural changes to Vietnam’s real estate market. The new Land Law expands access to land for foreign investors and overseas Vietnamese, while providing clearer regulations on land use rights auctions, helping to limit speculation and price manipulation. This will not only increase financial resources for the market but also create healthy competition, bringing real estate prices to more reasonable levels in the future.</p>
<p>It is expected that from 2026 onwards, when these regulations are truly absorbed, the market will witness an increase in supply from large joint venture projects with foreign partners, especially in the industrial and resort real estate segments. The revised Housing Law, with a focus on developing social housing, is expected to solve the housing problem for low-income people, a segment that accounts for 60-70% of demand in large cities. If effectively implemented, by 2030, the whole country must complete 995,445 apartments to achieve the goal of building at least 1 million social housing apartments for low-income people and workers in industrial parks.</p>
<p>Another driving force for the real estate market to have a high rate of selection in the next 12 months is <strong><em>the increased public investment and improved infrastructure in 2025.</em></strong> Along with the economic growth target, the total planned public investment capital is VND 878,316 billion, a record number recorded to date. Current key public investment projects include the North-South Expressway, Long Thanh Airport, the beltway system and metro lines in Hanoi and Ho Chi Minh City. In addition, there are projects being planned such as the construction of a nuclear power plant and the North-South high-speed railway.</p>
<p>“Real estate projects will benefit when infrastructure projects are completed and put into operation. Accordingly, urbanization and industrialization will be inevitable trends, forming around highways and beltways, leading to demand for both residential and industrial real estate. In addition, when public investment projects are well planned, it will be a solution for the sustainable development of the real estate market, limiting virtual fever, speculation, and supply-demand imbalance in big cities,” said Mr. Phung Hoang Co, Vice President of Vietnam Report.</p>
<p>Source: https://vneconomy.vn/nam-dong-luc-thuc-day-thi-truong-bat-dong-san-2025.htm</p>
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