More high-end projects intensify competition in Hanoi’s office market
About 290,000 square meters of new space, mostly Grade A (market’s most active segment), is expected to come online over the next three years.
THE HANOI TIMES — Hanoi’s office market is expected to remain highly competitive as more high-quality projects come on stream, expanding options for domestic and international businesses, according to William Gramond, Director of Commercial Leasing at Savills Hanoi.
An office building for lease on Nguyen Chi Thanh Street in Hanoi. Photo: Pham Hung/The Hanoi Times
“This is a positive sign for the entire market as new projects are placing greater emphasis on quality, amenities and user experience,” Gramond said in Savills Hanoi’s latest report.
In the last quarter of 2025, developments such as Oriental Square, Tien Bo Plaza and The Marc 88 will add premium office supply to the city. Over the next three years, about 290,000 square meters of new space, mostly Grade A (the market’s most active segment), is expected to come online.
Savills said that in the third quarter of 2025, Hanoi’s office market held steady on rents and recorded an improvement in occupancy.
Total supply reached 2.3 million square meters across 190 buildings, with inner-city areas accounting for the largest share, reflecting the ongoing shift toward office developments outside the traditional core and a move toward decentralization.
Leasing activity in the quarter was driven mainly by relocation demand, as tenants continued to seek more cost-effective options and upgraded workspaces.
Gramond noted that this is supported by a mix of factors, including improved infrastructure, higher-quality new projects, and more competitive rents in non-central locations.
As additional buildings enter the market, older projects are also under pressure to upgrade. Beyond location, features such as open workspaces, natural light, in-building amenities, and supporting services, including cafes or recreation areas, are becoming more important.
These elements help create a more comfortable work environment and support businesses in attracting and retaining talent.
According to Matthew Powell, Managing Director of Savills Hanoi, one of the most notable shifts in the office market is the strong transition toward green and environmentally friendly workplaces.
Achieving a green certification has become almost a standard requirement for new buildings, he said.
Older projects also need to upgrade and improve sustainable operations to stay competitive. This is not only a global trend but also a key factor in strengthening a building’s appeal and ensuring long-term competitiveness, he noted.
