Real estate sector saw FDI increase 60 per cent in 2024

Photo: Le Toan.

According to a report by the General Statistics Office under the Ministry of Planning and Investment, the total foreign investment registered in Vietnam reached $38.23 billion for the year, down 3 per cent on-year.

There were 3,375 newly licenced projects, valued at $19.73 billion, an increase of 1.8 per cent on-year in number of projects but a decrease of 7.6 per cent in registered capital.

Of those, newly registered projects in the real estate sector reached $3.72 billion, accounting for nearly 19 per cent of total newly registered capital.

The newly registered and adjusted capital in real estate business activities together reached $5.09 billion (up 9 per cent compared to last year), accounting for more than 15 per cent of total adjusted and newly registered capital.

For the form of capital contributions and share purchases by foreign investors, registered investment capital in real estate business activities reached $1.22 billion, down 61 per cent compared to 2023.

The total registered FDI capital in the real estate sector in 2024 reached more than $6.3 billion in total, an increase of 35 per cent compared to last year.

Nguyen Le Dung, head of Investment Department, Savills Hanoi, said that investors from Singapore, Japan, and South Korea are countries with active operations in Vietnam.

"There are a number of segments that investors pay attention to. For example, the residential real estate segment continues to attract a lot of attention due to urbanisation and rising housing demand in large cities. The supply of new projects is recorded at a low level due to legal restrictions, meaning this segment receives a lot of attention from foreign investors," Dung said.

The strong development of the manufacturing industry in Vietnam has made industrial real estate an attractive segment.

"The rise of this segment is driven by the presence of many foreign investment funds and investors, focusing on Grade A warehouse and workshop projects that meet high standards and quality in the market," said Dung.

Meanwhile, the commercial real estate segment also received great attention, thanks to the development of the retail and service markets.

"This reflects the increase in demand growth in parallel with urban real estate and is supported by factors such as the transformation of people's consumption habits, with more customers prioritising shopping experiences at commercial centres and closed multi-functional service spaces," she added.

Meanwhile, Hoang Minh, director of the Thu Duc Real Estate Transaction Centre in Ho Chi Minh City, commented that investors today tend to prioritise private enterprises, thanks to their flexibility and ability to quickly adapt in operations.

"The scale and total investment of investors is very diverse and will change depending on each development segment," Minh said.

However, Minh stressed that foreign investors pay special attention to projects that have the ability to develop sustainably and meet current market needs to increase product quality and consumer experience.

"In addition, legal issues will be given priority due to their direct impact on implementation progress, transaction structure, and investors' financial plans," he added.

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