Office market expands beyond the city center
High-quality office supply is expanding beyond the city center, forming new clusters, while the core area retains its central role.
Hanoi's office market is shifting from a single-core model to a multi-core structure, as high-quality supply expands beyond the central business district, forming new clusters while the central area retains its core role.
Savills Vietnam said the market is expected to add about 403,000 square metres of office space by 2028, with most new supply in the Grade A segment. New developments are concentrated in western and inner urban areas, while additions in the central district remain limited, reflecting a shift toward locations with larger land availability suited for large-scale projects and rising demand for premium workspaces.
Demand is expected to become more selective, with tenants prioritizing high-quality offices that improve operational efficiency and user experience. Office clusters are gradually emerging alongside infrastructure and new urban developments, while the city center continues to host corporate headquarters and high-value functions.
In 2025, total office supply reached about 2.3 million square meters of net leasable area, broadly stable quarter-on-quarter and slightly down from a year earlier. Grade B offices continued to account for the largest share, while Grade A supply declined due to reclassification and Grade C remained stable.
Overall occupancy stood at 85%, with Grade C posting the highest occupancy rate. The central district continued to lead in both rents and occupancy, although non-central areas are improving, supported by new high-quality supply.
Leasing activity was driven mainly by information technology firms and companies in the finance, insurance and real estate sectors. Transactions increasingly reflected a shift toward upgrading office space and optimizing costs, with demand focused on well-located Grade A and B buildings that meet modern operational needs.
Hai Phong News