Vietnam's industrial real estate market boasts ample potential, but challenges remain to its development.

The industrial real estate market in Vietnam remains robust as numerous large-scale manufacturers initiate their projects, driving demand and pushing prices higher.

The industrial real estate market, particularly in the southern region, held steady in the first months of this year, which experts said was mainly thanks to rebounding imports and exports, and increasing influx of foreign investment.

According to CBRE, the surge in the next three years will be 3-9 per cent per year in the North and 3-7 per cent per year in the South.

The industrial real estate segment has emerged as a driver of the property market after sailing through the economic storm last year thanks to the foreign direct investment (FDI) influx, experts have said.

New supply in the industrial real estate market in HCM City and neighboring provinces has been slow amid an increase in demand from manufacturing industries during the peak year-end buying season before Tết (Lunar New Year).

Despite formidable challenges for the real estate market in 2023, industrial property market has stood out as a bright spot that has maintained its growth momentum on the back of the foreign direct investment (FDI) flow, according to insiders.

Vietnam’s industrial real estate market is heating up due to healthy absorption of industrial land, ready-built factories and warehouses, reported experts from real estate consultancy CBRE Vietnam.