Hanoi central Grade A office supply faces scarcity

The Hanoi office market is undergoing a shift toward a multi-polar structure. While total office supply in Hanoi reached approximately 2.3 million square meters in the first quarter of 2026, new supply through 2028 is expected to be concentrated in developing areas such as Tay Ho Tay, the West, and the Southeast of the city.

In contrast, Grade A office supply in the Central Business District (CBD)—specifically in Hoan Kiem and Ba Dinh districts—is becoming increasingly scarce. Despite higher rental costs, the occupancy rate for Grade A offices in the CBD reached 95% in the second quarter of 2026, significantly higher than the 81% occupancy rate observed in non-CBD areas.

William Gramond, Commercial Leasing Director at Savills Hanoi, noted that emerging office areas are expanding the market scale rather than competing directly with the center. While large-scale enterprises tend to seek space in new areas with better land availability, the CBD remains highly sought after by multinational corporations and firms in finance, consulting, and professional services that prioritize prestige and brand positioning.