2025 is considered by experts to be the starting year of a new cycle of the real estate market. Ms. Pham Thi Mien – Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute pointed out the fundamental factors that will create momentum for the heating up of the real estate market in 2025.
New Legal Corridor
The Deputy Director of the Vietnam Real Estate Market Research and Assessment Institute said that the new legal corridor to be passed in 2024 with 3 laws, namely the 2023 Law on Real Estate Business, the 2023 Housing Law and the 2024 Land Law, will create a “turning point” in the process of building a new legal corridor for the Vietnamese real estate market. Putting three laws into effect 5 months ahead of schedule, and issuing a series of circulars and decrees even before the Law takes effect, clearly demonstrates the great efforts and determination of the Government and ministries and branches in promoting the market to recover soon.
Along with that, the Government and ministries have taken steps to remove difficulties and obstacles for the real estate market. This series of measures has been strongly implemented since 2024 and will continue to be promoted along with the legal corridor coming into practice in 2025. This transparency and openness will create the premise for the real estate market to heat up in 2025. In fact, the market has been recording more and more investors confidently launching products after a period of “waiting and waiting”. Notable among them are: Vingroup, Sungroup, Bcons, Bao Hung, FPT, KN, GP Invest,… Many large-scale launch events and massive media coverage have been, are and will be strongly implemented in the coming time with typical projects such as Vinhomes Global Gate, The Senique, The Opus One, Sun Urban City, Waterpoint Urban Area, Bcons City, Caraworld,… Besides, many projects have been restarted and re-implemented after a long period of “silence” such as D-Homme, Astral City, Hanoi Melody Residences, Gem Riverside, Lavida Plus,…
Strong Economic Recovery
According to Ms. Mien, the economy in 2024 has made significant progress, creating a promising foundation for economic growth in 2025. Specifically, GDP in 2024 grew by 7%, inflation was controlled, the average consumer price index (CPI) tended to decrease gradually when the first 11 months of 2024 increased by 3.69% over the same period. Production and business activities continued to change positively, regaining growth momentum as in the period before the Covid-19 pandemic. Growth drivers from the demand side recovered positively. In the 11 months of 2024, the total registered FDI capital was about 31.4 billion USD, the realized FDI capital was about 21.7 billion USD, an increase of 7.1%. Total retail sales of goods and consumer service revenue increased by 8.8%. In the tourism sector, international visitors to Vietnam reached about 15.8 million, an increase of 41%. Exports continue to be a bright spot, with most key export product groups growing strongly. E-commerce growth is among the world’s leading.
Ms. Mien emphasized that the impressive economic results in 2024 are the basis for many prestigious organizations to optimistically forecast Vietnam’s GDP growth in 2025. Accordingly, the World Bank forecasts Vietnam’s GDP growth to reach 6.6% in 2025. This figure is 0.1% higher than the organization’s previous forecast in October 2024. This will be the basis for the real estate market in 2025 to continue to flourish and grow.
Heavily Invested in Transport Infrastructure
The Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute said that the development of public investment projects, especially transport infrastructure projects, will promote the expansion and development of regional connectivity, not only opening up opportunities for sustainable real estate investment but also opening up more housing options at more affordable prices for home buyers.
Specifically, according to the report of the Ministry of Finance, the estimated disbursement of public investment capital by the end of November 2024 is VND 410,953.1 billion, reaching only 54.8% of the plan, reaching 60.43% of the plan assigned by the Prime Minister, significantly lower than the same period, due to low disbursement capital of localities. By the end of October, the total disbursed capital of 9 important national projects in the transport sector was more than VND 52,999 billion, reaching 52.3% of the assigned plan for 2024 (more than VND 101,340 billion).
In 2025 alone, the Government’s public investment plan is expected to be over VND 790,000 billion, an increase of over VND 120,000 billion compared to 2023. This continues to be an important driving force contributing to “heating up” the real estate market in 2025.
