Resort real estate market shows positive signs

Hanoi The resort real estate market is recording positive signs as demand, in both domestic and international tourist markets, is gradually recovering at a stable pace, thereby helping strengthen trust in the industry, according to Mauro Gasparotti, Director of Savills Hotels.

According to a survey by Savills Vietnam, there are currently many projects in the process of restarting. In the past few months, feasibility study consulting or hotel operator selection services have received many search requests. Among them, Da Nang stands out with the advantage of connectivity infrastructure and diversity of tourism products and accommodations, and is expected to continue to lead the recovery process.

Destinations that are familiar to domestic tourists such as Quy Nhon or Phu Yen also have more and more projects being planned. These localities are also focusing on developing transportation infrastructure and high-end accommodation products to attract more foreign visitors.

The trend of wellness resorts integrated with models such as onsen (hot springs and the bathing facilities and traditional inns around them) or medical tourism is increasingly being developed by investors.

In addition, the luxury segment continues to receive huge attention from investors. The luxury – high-end hotel market in Ho Chi Minh City is expected to maintain a competitive advantage in the next few years because new supply is still limited. However, according to experts, the city still needs to diversify the types of accommodation products to meet the needs.

As for hotels and service apartments, the Hanoi market has also recorded an increase in the number of projects in the planning process. In addition, the middle- and high-end hotel segments have also reported good growth rates in locations adjacent to industrial parks.

Currently, with positive signs from the market, merger and acquisition (M&A) activities are increasing as well. In addition to operating projects with stable cash flows, a number of previously delayed or unfinished projects are also in the process of being transferred to new investors.

Along with positive changes in the macroeconomic picture, real estate players are pining for 2025 when new laws come into play.

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.