Experts predict that the industrial real estate market by the end of 2023 will not experience significant chan...
Experts predict that the industrial real estate market by the end of 2023 will not experience significant changes compared to the beginning of the year, but in 2024 the recovery and development will become more evident
Industrial zone in Tan Dong Hiep B Industrial Park, Di An City, Binh Duong Province
Industrial real estate is considered the best-performing segment of the market due to strong business indicators and increasing industrial land prices. In the upcoming year of 2024, the recovery and development will be more apparent.
The trend of shifting industrial real estate investment flows from multinational companies to Vietnam in recent times has driven positive growth in the demand for industrial real estate in 2023.
“The absorption rate for the industrial real estate market will continue to grow and receive attention from investors. The industrial real estate market is receiving great attention from manufacturers around the world with high investment demand, especially in the field of technology, green energy, and logistics”, Mr. Le Trong Hieu, Senior Director of CBRE Vietnam,
The industrial zone of Tan Uyen town, Binh Duong province
Vietnam is expanding investments through bilateral and multilateral trade agreements to benefit from tax reductions and investment incentives for the manufacturing sector.
In addition, the political stability will help maintain relatively stable investment capital in Vietnam.
In order to meet demand, in recent years, many secondary domestic and foreign investors have been constructing numerous warehouse and factory projects for lease, contributing to a relatively abundant supply in the market. However, given the ongoing economic challenges, the pace of supply growth is not able to increase rapidly.
The land rental prices in industrial hubs in the southern region have been continually increasing and reaching new highs in recent years.
From another perspective, Mr. Vo Hong Thang, Director of Consulting Services and Project Development at DKRA Group, noted that the industrial real estate market still has legal challenges to resolve. Concretely, these challenges land shortage, capital sources, prolonged administrative procedures, and continuous delays in land clearance.
Therefore, it is necessary to simplify and reduce administrative procedures obstacles related to the establishment and development of industrial zones, ensuring transparency and fairness in licensing and investment procedures.
Via Bao Hai Duong