New supply increases and competitive developments
Cushman & Wakefield's Hanoi real estate market overview report shows that in the first quarter of 2026, the Hanoi retail market recorded more than 51,000 m2 of new supply, raising the total retail area of the whole market to about 1.43 million m2. This increase mainly came from the opening of a shopping center in the edge of the center, along with retail podiums in the western area.
Shopping centers continue to account for a large proportion, contributing about 85% of the total supply. New projects are mostly concentrated in areas outside the center, reflecting the increasing trend towards experiential retail.
Ms. Hoang Nguyet Minh - General Director of Cushman & Wakefield Vietnam said that new supply is contributing to increasing the depth of the Hanoi retail market, especially in areas outside the center and the West, where developers are adapting to changes in consumer behavior through experiential and community-oriented retail models.
However, as future supply continues to expand, competition between investors will become clearer. Projects with solid surrounding population, clear positioning, effective tenants structure and proactive asset management strategies will have a better position in maintaining customer volume, occupancy rate and rental price resistance in the next growth phase.
In the first quarter of 2026, the average occupancy rate of the Hanoi retail market reached 86.5% (down 0.6 percentage points quarter-on-quarter; up 1.1 percentage points year-on-year). The slight quarter-on-quarter decrease mainly stemmed from the completion of three new projects, in which some areas have not officially gone into operation because tenants are still in the interior completion phase.
Rent demand continues to be driven by the F&B and entertainment sectors, contributing to supporting the overall market absorption capacity. In that context, investors are increasingly focusing on optimizing the tenor structure, increasing retail experience factors and developing community-oriented spaces, in order to maintain customer traffic and strengthen the long-term stability of occupancy rates.
Rent growth
In the first quarter of 2026, the average rent of the ground floor in Hanoi reached 51.4 USD/m2/month (equivalent to 1.34 million VND/m2/month) - up 9.1% quarter-on-quarter and up 10.1% year-on-year. The quarter-on-quarter increase was mainly driven by new retail projects in the outskirts of the city center, where asking rents are set higher than existing projects.
Meanwhile, rental demand in central areas remains stable, especially for well-managed, branded and highly recognizable assets. This has supported promoting the overall rental price performance of the market, despite pressure from increased supply and the trend of consumer spending shifting to e-commerce.
In general, the ability to maintain rental prices continues to be strengthened by projects with favorable locations and retail models that emphasize experience and destination role.
In the last 9 months of 2026 to 2028, Hanoi's retail market is expected to continue to expand, with about 314,000 m2 of new supply. The addition of new supply is expected to increase the level of competition between investors, especially in areas outside the city center. When new projects are completed, longer filling times and more flexible rental policies may put pressure on actual rental prices and occupancy rates.
Conversely, projects with large surrounding residential groups and clear locations are expected to maintain better performance than the general level of the market. The future retail supply in Hanoi is expected to be mainly concentrated in the West and suburban areas, in line with the trend of urban expansion and population migration. Fashion and cuisine are still the main industries, playing an important role in maintaining retail space rental demand.
