This content is an excerpt from Savills Impacts, a global report on real estate trends that will shape the market in 2025. It is curated and supplemented with local insights from Savills Viet Nam. 

The Ha Noi office market is entering a pivotal transformation phase, driven by an increase in high-quality supply and evolving demands for workspaces. Tenants, specifically businesses in high-value sectors, are gaining leverage to negotiate, upgrade their office environments, and optimise operational strategies. 

A supply increase brings more options and stronger negotiations 

1. A supply increase

The Savills Market Brief reveals that in Q1/2025, the total office stock reached 2.33 million m2 NLA, an increase of 10% YoY. Although Grade A office space in the CBD remains scarce, the expanded inner-city areas and western districts are experiencing robust development of new projects, accounting for 41% of the total supply and significantly increasing the range of options available to tenants. 

Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Ha Noi, shares that as new office supply meets higher standards in design, construction, and operations, it also represents a shift that favours tenants. Businesses will gain the advantage of negotiating rental rates and securing more flexible lease terms and a wider range of services. As market occupancy drops to 82% (due to unabsorbed new supply), companies are well-positioned to strengthen their negotiations and secure lease agreements that align with their demands. 

 2. A shift in leasing strategies 

According to the Savills expert, instead of expanding within the current premises, tenants are increasingly relocating to newer and more modern buildings, ones that can flexibly meet rising demands for functionality, amenities, and workplace experience.  

Savills has recorded a total of 78% in Q1/2025, specifically related to relocation demands, a pattern that reflects a shift in how businesses perceive office space. They will prioritise space optimisation, workplace quality upgrades, or cost efficiency over expansion.  

This also means that new buildings featuring high ceilings, open spaces, ample natural lights, and integrated technology will become key competitive advantages. Features that were once considered added benefits are now becoming essential requirements for attracting and retaining tenants. 

3. Competition among landlords creates indirect benefits for tenants 

Another advantage for tenants is the increasing intensity of competition among landlords. As new Grade A buildings enter the market with ever-higher standards, landlords are being compelled to renovate and upgrade the infrastructure and operational services of existing buildings for long-term retention. This dynamic is leading to an overall improvement and diversification of inclusive services without increasing costs. Older buildings that fail to keep up risk losing tenants, especially as the market becomes segmented by building quality. 

4. Tenants should initiate a long-term strategy 

According to Savills, 95% of new supply from now until 2027 will come from Grade A office projects. After 2027, 864,500 m² is projected from 28 projects, with 64% also being Grade A. With a significant volume of Grade A supply entering the market over the next 2–3 years, multinational corporations and companies in the ICT, finance, and real estate sectors can begin developing long-term plans, securing strategic locations, and taking a more proactive approach in lease negotiations. 

The Sr. Director states that instead of waiting for vacancies, tenants have an opportunity to engage with projects in the development stages, enabling an optimised fit-out, and even participate in interior design, an opportunity rarely afforded in the past.  

Tenant benefits from accessing high-quality office space  

1. Sectors driving demand for premium office space

In Q1 2025, the FIRE sectors (Finance, Insurance, Real Estate), ICT, and consulting were the leaders in Ha Noi office leasing. These groups not only require large floor areas but also raise the standards for work environments, technical infrastructure, and transportation connectivity. Developers are continually targeting these tenants with modern designs, flexible floorplate configurations, and smart technology integration. Grade A developments meeting these requirements include Taisei Square Ha Noi, Grand Terra, and Oriental Square (expected to be completed by the end of 2025). 

2. Green offices become prerequisites 

This follows in the footsteps of sustainable offices, an emerging standard that tenants are placing greater emphasis on. According to the Savills Impacts 2025 report, in markets like Bangkok and Singapore, rents for green-certified Grade A buildings can be 20–30% higher than those for conventional buildings. In Ha Noi, most green-certified properties have been developed over the past five years and adhere to international standards. Therefore, a rental gap of over 20% reflects construction differences in construction quality versus green credentials. 

However, companies that perceive sustainability as a prerequisite, particularly European tenants, are increasing. Early commitment to green-certified developments enables businesses to stay ahead of the curve while meeting growing ESG requirements from international partners and strategic shareholders and maintaining competitive rental costs. 

What should landlords and occupiers do? 

1. For landlords 

With Grade A supply evolving with across-the-board upgrades in building quality and heightened competitive pressure, landlords must be cautious in their pricing strategies. According to the Savills expert, the office market is currently tenant-driven, making rent increases a risky move for landlords. Grade A office landlords should focus on closing deals that boost occupancy and maintain a stable cash flow. 

The expert also notes that this is an ideal period for office tenants in Ha Noi to optimise their space strategies by negotiating better lease terms, upgrading the workplace, repositioning brand image, and advancing ESG initiatives. 

2. For businesses 

However, this will not last long. As high-quality supply is quickly absorbed, the market may soon reach an equilibrium or even shift in favour of landlords. Therefore, now is the right time for companies to proactively review their lease agreements, assess medium to long-term growth, and take action. 

Learn more about the theme of adaptation and IMPACTS 2025 articles 

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• New investment strategy in Viet Nam
• Singapore: Public housing is a strategic pillar to build a nation