The domestic real estate sector is poised for a substantial profit increase in 2025, fuelled by a more optimistic macroeconomic outlook and an expected rise in new supply as companies finalise legal procedures for upcoming projects.

Foreign direct investment (FDI) in the real estate sector for 2024 reached US$3.72 billion, making up 18.8% of the total FDI that Vietnam attracted in the year, second only to the manufacturing sector, reported the General Statistics Office (GSO).

In the first 11 months of 2024, registered foreign direct investment (FDI) in Vietnam’s real estate sector surged by 89.1% year-on-year, reaching about US$5.63 billion, according to Avison Young Vietnam’s ‘Vietnam Real Estate 2024: A Year in Review’ report.

The National Financial Supervisory Commission, in collaboration with the Korea International Cooperation Agency (KOICA), organised an international conference themed “Vietnam’s financial market: Perspectives and policy orientations” in the south-central province of Ninh Thuan on December 12.

Government policies and market forces are expected to propel the real estate sector for continued growth in 2024, with demand in industrial and office leasing segments expected to increase, according to experts from Savills Vietnam.

Financial constraints and liquidity issues are keeping a number of businesses in Ho Chi Minh City, particularly those operating in the real estate sector, in significant tax debts.

Experts have suggested adjusting foreign investment policies, making them match the evolution of the global economy, amidst the shrinking FDI inflows in the first half of this year.

Although the real estate sector has suffered a fall in foreign direct investment (FDI) attraction, experts are still optimistic about its prospects of the sector, especially the industrial segment which is described as a bright spot.

VOV.VN - The southern province of Binh Duong attracted over US$340 million in foreign direct investment (FDI) I the first two months of this year, equaling 441% year on year, with the real estate sector making up 90% of the total.

Experts have held that the real estate sector will begin a recovery phase in 2023 with many difficulties lying ahead. However, difficult times will present opportunities for long-term investors to buy low.