Increase in Foreign Investments Expected to Drive Real- Estate market: Ken Research
by Rati Ram Business DeveloperAccording to study, “Real-
Estate Comprehensive Report Q4/2019”
the key companies operating in the Vietnam real-estate market are Vingroup,
KhangDien Housing Investment & Trading JSC, No-Va Real Estate Investment
Corporation, DatXanh Real Estate Service & Construction JSC, FLC Group,
KinhBac City Development Share Holding Corporation, Nam Long Investment JSC,
PhatDat Real Estate Development JSC, QuocCuongGia Lai Joint Stock Company, Binh
Duong Construction and Development JSC. A number of players are increasing their
business around the globe due to enhanced effective operations, increased
customer base, and expanded geographical reach.
Real estate is a distributed blockchain ledger and
document-intensive business that can consolidate mortgage, escrow and deed
transfer record-keeping, and can also allow automated lodging of contingent
events in the terms of contracts. This helps in expediting real estate
transactions, offering total transparency and reducing fraud.
Real estate market involves selling & renting, buying,
leasing of property and condominiums for commercial & personal household
usage. Commercial real-estate business had developed exponentially in the last
decade due to increased number of key players entering the regional market as
well. Lower rentals, government reforms, mortgage rates in the developing
countries is likely to boost the market over the forecast period.
Based on type, Vietnam real-estate market is
segmented into brokerage services and rental activities. In addition, based on
end-use industry, market is segmented into commercial real-estate industries,
residential real-estate industries and others. Commercial real-estate includes
offices, retail, industrial, and multifamily
The Vietnam real-estate market is driven by rise in
investment in construction industry, followed by rapidly increase in property
prices in some areas, growth in urbanization & increase in population,decrease
in interest rates, rise in commercial & industrial sector, increase in per
capita income of the middle class households, rise in development of new cities,
increase in foreign investments and growth in infrastructure sector.However,
political uncertainty and increase in costs of home space may impact the
market. Moreover, increase in demand for residential & non-residential
buildings and rise in government initiatives to open up the real-estate sector
for foreign direct investment are key opportunities for market. Furthermore,
crowd-funding investments in real estate and Block-chain for real estate
industry, and growth in technology to improve agent services are major trends
for market.
Vietnam real estate market had always remain attractive
for foreign investors owing to its growth potential,
especially investors from the Republic of Korea.Foreign investors are commonly
hesitant to enter the market due to inconsistent bureaucratic red tape and the
change in legal environment. Therefore, cooperation with Vietnamese firms
through capital contribution and share purchase enables foreign investors to
get access to land plots, which are ready for construction.
Strong demographic basics are the source for
Vietnam’s real estate industry to grow. Due to growth in middle class and fast
urbanization pace are the pillars for growth of the market. In upcoming years,
it is predicted that future of the market will be optimistic as a result of growth
in industrial property segment and rise in domestic demand during the forecast
period.
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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Created on Feb 25th 2020 04:14. Viewed 281 times.