Real Estate Outlook 2026: From Global Trends to Growth Drivers in Vietnam

Trends shaping the global real estate market in 2026

According to Paul Tostevin, Director of Savills World Research, the economic outlook continues to be the biggest factor influencing the real estate market next year. The trend of interest rates gradually decreasing towards neutral levels is supporting both investment and rental demand. However, the new interest rate levels remain higher than before 2020, keeping capital costs high and putting pressure on the implementation of new projects.

However, as the market has somewhat adapted to the new interest rate environment, investment flows are returning more clearly, alongside a recovery in demand from leasing businesses . Savills forecasts that the total value of global real estate investment transactions could exceed $1 trillion in 2026, the highest level since 2022.

Technology, particularly AI, has risen to second place among the factors shaping the global real estate market. AI not only impacts the labor structure and office usage strategies of businesses, but also sparks a powerful wave of development in data centers and digital infrastructure. In the field of property management , AI drives intelligent operational, maintenance, and automation solutions, improving operational efficiency and optimizing costs in the long term.

Beyond technology, the human element remains central. A young population and rapid urbanization continue to drive growth in many emerging markets such as India, Saudi Arabia, and Vietnam, while global hubs like Dubai and Abu Dhabi benefit from migration and wealth accumulation. Changes in consumer behavior are also shaping demand for experiential retail, high-quality office space, and housing products suited to modern lifestyles.

Environmental pressures and regulatory frameworks related to emissions continue to increase. Along with this, new regulations on energy performance and climate reporting in Europe, Australia, and many other markets will drive up compliance costs and widen the gap between compliant and non-compliant assets.

Amidst volatile geopolitical conditions, trade tensions and protectionist policies continue to significantly impact industrial and logistics real estate. Trends such as supply chain diversification, “China+1,” and onshoring (manufacturing/services on-site) are driving warehousing demand in many emerging markets, including Southeast Asia.

Vietnam: Internal drivers in a new growth cycle

2025 marks a significant turning point for the Vietnamese economy, with GDP growth exceeding 8%, driven primarily by the industrial and high-tech sectors. This growth reflects the structural transformation of the economy, as Vietnam gradually moves away from a labor-intensive production model towards higher value-added industries.

Sectors such as electronics, semiconductors, renewable energy , and high-tech industries are attracting high-quality FDI, contributing to the upgrading of production value chains . Internationally, Vietnam is increasingly recognized as a strategic manufacturing hub in ASEAN, not only due to its cost advantages but also because of its stability, adaptability, and extensive network of trade agreements.

Mr. Matthew Powell, Director of Savills Hanoi

According to Matthew Powell, Director of Savills Hanoi, this shift creates a solid foundation for the real estate market, which has already seen a clear recovery since the end of 2025. Entering 2026, industrial and residential real estate are predicted to continue leading the market.

In the industrial segment, demand is focused on industrial land in key manufacturing centers such as Bac Ninh, Hai Phong, Binh Duong, and Dong Nai; along with the strong development of ready-built factories, modern warehouses, and logistics zones connected to seaports, airports, and highway systems.

In the housing segment, products serving genuine housing needs are considered a sustainable growth driver, including mid-range apartments, affordable housing, and satellite urban development projects along new infrastructure corridors. These segments directly benefit from urbanization and the increasing workforce in industrial centers.

However, rapid growth also poses the risk of forming localized "hot spots," especially in large cities where housing prices tend to rise faster than incomes. Risk management requires coordination between transparent land policies, expanding the supply of affordable housing, controlling credit, and directing development towards satellite areas.

From a policy perspective, the implementation of resolutions on private sector development, especially Resolution 68, is opening up significant opportunities for domestic businesses to participate more deeply in large-scale infrastructure and industrial park projects. Reforms in administrative procedures, land access, and diversification of capital sources are expected to help unleash private resources, enhance project implementation capacity, and strengthen investor confidence.

To maintain sustainable growth in 2026 and beyond, Vietnam needs to continue attracting high-quality FDI, especially in the green manufacturing sector. This requires a clear policy framework for green development, selective incentives, strong investment in renewable energy, green industrial park infrastructure , and improved human resource quality.

Communicated by An Huy Group

According to Vietnam Logistics Review Magazine