The office market in 2024 saw strong momentum in the second half of the year, marked by a series of recorded transactions. Experts anticipate this growth will continue in supply and demand throughout 2025. However, developers will need to offer high-quality properties and attractive leasing policies to retain tenants in an environment where demand is rapidly changing. 

To gain deeper insights into the office real estate market in 2025, Savills Viet Nam presents commentary from Hoang Nguyet Minh, Senior Director of Commercial Leasing, Savills Ha Noi, based on a detailed analysis of the topic. 

Question 1: What is your opinion on the office market trend in 2025? 

The market in 2024 experienced strong momentum in the second half, as many companies began to approve plans for relocating, expanding, or opening new offices. This trend is expected to significantly boost demand in the market throughout 2025. According to Savills, the absorption rate of vacant office space in 2025 is projected to be higher than in 2024. 

In 2025, the market will see an influx of new supply, which will be an advantage for tenants, offering them a wider range of options. At the same time, it will intensify competition for occupancy, pushing developers to pay more attention to favourable lease strategy, update building quality, and other leasing incentives. 

The abundant new supply may reduce the overall market occupancy rate. However, it is important to recognise that the market will experience more positive activity in terms of both supply and demand in the coming year. 

Question 2: How have tenant preferences for office spaces evolved, and how do they compare to previous years? 

At the end of 2024, Savills conducted a survey with nearly 500 companies currently leasing office spaces in Grade A and Grade B buildings to gain deeper insights into the office market demand for 2025-2026. The results revealed interesting information about the ongoing shift in tenant office preferences. 

First, regarding office location choices, demand previously concentrated in the Hoan Kiem area (CBD) has shifted, with Ba Dinh emerging as the top priority, followed by Cau Giay. The percentage of tenants interested in the Hoan Kiem area dropped from 45% in 2021-2022 to about 25% in 2024. 

Furthermore, tenants have broadened their search approach, no longer focusing on one area. Most tenants now consider at least two locations when searching for new office spaces. Possible combinations include Hoan Kiem, Ba Dinh or Ba Dinh, Cau Giay or Ba Dinh, Dong Da, or Tay Ho. 

This trend can be easily understood as the Ha Noi office market has diversified business hubs. As a result, tenants have more options, and their choices are no longer limited to one area. This means tenants are better positioned to negotiate with landlords for more favourable lease terms compared to before. 

Question 3: Which industry sectors are expected to have high demand for office space in 2025? 

According to Savills forecast, the IT and manufacturing sectors will continue to lead in office leasing demand in the near future. These sectors typically require large office spaces, with the average area leased by tenants in these industries exceeding 1,000 sq m. 

In terms of the number of office lease transactions between 2025 and 2026, industries such as consulting (including financial and legal advisory), distribution channels, and education are expected to take the lead. This is due to the rapid growth of these sectors in the coming years. 

Question 4: Is Ha Noi's current office real estate market a tenant’s or a landlord’s market? 

With the large volume of available supply spread across districts, the market currently favours tenants. Tenants have more choices and higher expectations. Savills predicts that until the end of 2025, possibly extending into 2026, the market will continue to favour tenants. As a result, landlords will need to adjust their financial strategies to offer more attractive incentives to attract tenants. 

Question 5: What changes do landlords need to attract tenants in 2025? 

In the past, landlords simply built buildings and leased out vacant spaces. Now, however, they must offer more to tenants. With a highly competitive market and most buildings constructed to a high standard - especially Grade A properties aiming for green certification - obtaining a green certificate has become both standard and essential. This is particularly true amid concerns over climate change, air pollution, and environmental degradation, alongside businesses’ need to meet Net-Zero targets. 

Secondly, building services now play a crucial role. Newer developments are competing by providing a broader range of amenities, such as dedicated dining areas for staff, gymnasiums, green spaces, and other services. Some developers are adopting flexible business models and leasing policies, even supporting tenants with complete interior fit-out investments. Many tenants opt to sign management and operational contracts in collaboration with office service providers, coworking spaces, and shared offices, enjoying additional benefits. 

Thus, to compete in a market with abundant office supply, landlords must focus on offering competitive pricing and attractive leasing terms, complemented by high-quality on-site services that enhance the working environment for tenant employees.