Real estate in Vietnam has been soaring in the past half-decade. Characterized by the low cost of properties and the ease of acquiring one, it’s not surprising that locals and foreigners alike are starting to invest. And good news, the forecast for Hanoi real estate investments still seems to be bullish in the following years. Here are five real-estate trends that make investing in Hanoi a thing to consider.
1. All you need is a tourist visa
Buying a real estate property in Hanoi only needs a tourist visa for processing. Of course, there will be more requirements in the next step, but legally, you only need a tourist visa for the government to process your request. Besides, new foreign policies enable foreigners a no-cap property buying, as long as it is between 30% of the units in condominiums and 10% on landed projects. Foreigners can also choose among the 250 available houses onwards or divisions.
2. The Hanoi urbanization planning
Hanoi’s local government is planning to further improve the situation in the city by executing its urbanization plan. It is expected that an additional 13 embassies and 6 major government agencies are expected to be built in the future. A new Hanoi Metro elevated railway system is also at work, which will connect Hanoi from Dong Da district to Ha Dong District. Increased facilities are also expected, as Hanoi is rallying to keep up with its more modern neighbors.
3. Increase in tourism
Hanoi is Vietnam’s capital, and therefore, a lot of tourist spots are located in the city. There are at least a dozen places one can enjoy in the whole Hanoi area, which includes visiting the Hanoi Opera House, Old Town Quarter, the Hoan Kiem Lake, the Imperial Citadel, and the West Lake or Tay Ho. If your sense of adventure is still not quenched, the nearby cities will also offer different tourist destinations that you can enjoy.
4. The rise of luxury flats
Would you like to use your savings to get a luxury flat? One of the trends in Real Estate right now is the rise of luxury flats in Hanoi. Prices are lower compared to the other main cities in the area such as Hong Kong, Singapore, Tokyo, and even Bangkok. It’s what you can call a “bargain” when it comes to luxury flats. In 2018 alone, high-end condo units rose by 17%, a great profit percentage if you’re an investor. Foreigners and wealthy locals are the frontrunners of this trend.
5. The rental yield is high
There’s one thing that keeps Hanoi real estate attractive to investors’ eyes: high rental yields. According to research from Savills, Apartment rental yields stay high in 5.8%. Besides, just April last year, Prime Minister Nguyen Xuan Phuc decided to lower the interest rate for housing and construction, as well as housing renovation and repair. This is not to mention how expatriates from western countries usually choose a flat rather than buying a house.