The latest data on Vietnam's real estate market has given experts reasons to be optimistic about its development prospects in 2024. In particular, their attention has been drawn to the indicators of the industrial segment of the market in September 2023. The industrial real estate market has entered a phase of active recovery, which is driven by increased activity in the industrial sector of the economy, which has boosted the demand for industrial real estate.
There has been a notable increase in the number of industrial zones available on the market. Specifically, 106 new industrial zones with a total area of approximately 357 square kilometers have been introduced. In addition, there are already 292 operational industrial zones with an occupancy rate of over 80%. In addition, approximately 86,000 square meters of warehouses have been leased in the southern provinces of Vietnam, indicating significant growth potential in the logistics sector in recent months.
In the fourth quarter of 2023, new deliveries of modular warehouses are expected to enter the markets in the southern provinces of Vietnam, adding more than 460,000 square meters of space. As a result, the total available warehouse space in the market will reach 2.6 square kilometers. However, the growth of industrial rental space will mainly take place in provincial areas, as availability in major cities is limited and tenant demand is extremely high. The occupancy rate of industrial properties in major cities has practically reached 100%.
The industrial property market is expected to continue to attract an increasing number of foreign investors. In 2022, Vietnam has already been identified as the most attractive destination among developing countries among major international investment companies investing in this market segment. Industrial real estate in Vietnam comes in various forms, including turnkey factories, mixed-use factory space, advanced temperature-controlled buildings, infrastructure facilities, various warehouse formats, and more.