According to data from Savills Vietnam, in the first quarter of 2026, the total office supply in Hanoi reached 2.3 million m2 of net leased area from 190 projects, slightly decreasing quarterly and annually. The inner city and the West continue to account for more than 80% of the total supply.
In which, the Hoan Kiem area is facing a shortage of Grade A office supply, when high-quality projects tend to move to Ba Dinh and Cau Giay - areas with convenient traffic connections and rich and diverse utility systems.
Regarding occupancy rate, the total market occupancy rate reached 86%, recording an increase in both Grade A and C segments. Average rental prices increased slightly for both quarters and years, in which Grade C achieved the highest occupancy rate, while Grade A recorded the highest rental price in the market.
Renting activities in the first quarter of 2026 were mainly office moving transactions, reflecting the need to upgrade the quality of working space and optimize costs, which is still the main driving force. Demand continues to focus in the western region, especially in Grade A and Grade B buildings with good locations, supported by positive GRDP growth and stable FDI flows.
It is forecasted that by 2028, Hanoi market will have an additional 403,000 m2 of office supply from 20 new projects, of which Grade A will prevail and concentrate in the western and inner city areas, while the central area has limited additional supply. This shows a trend shifting to high-quality and more widely distributed supply.
Mr. William Gramond, Director of Commercial Leasing Department of Savills Hanoi, said that the market is recording a wave of decentralization towards the West and gradually spreading to Tay Ho, Tay Ho Tay. Currently, most of the new and high-quality supply is concentrated in the West - where there is a large number of young workers and high-quality personnel living.
According to him, businesses tend to place offices near employees' residences. In addition, the cost factor also plays an important role, as the Hoan Kiem area has very high rental prices. Although the vacancy rate is currently low, the market is recording a strong shift to green buildings, meeting high technical standards and LEED certificates. This is driving operating units and tenants to seek opportunities in new areas, thereby changing the face of the Hanoi office market.
He also believes that current trends are being adjusted to suit each type of business. Many large tenants are shrinking in area due to adapting to a working model combining direct and remote work.
At the same time, the environmental factor is increasingly focused on when businesses look for buildings that meet ESG commitments. Whether it is to narrow the area or apply a flexible working model, businesses are considering many factors at the same time. This is not a single choice, but a comprehensive combination, and is forecast to continue to shape the Hanoi office market in the coming years.
