*This is a collaborative guest post
After Vietnam joined the World Trade Organisation, its economy witnessed rapid growth and is now one of the fastest-growing economies in the world. Without a doubt, this attracts smart investors who wish to plant a seed in various sectors of the economy and make profitable returns. Many individuals want to invest in tourism as Vietnam is indeed a breathtaking country, others want to invest in technology and consumption and of course, real estate. Real estate is particularly attractive to investors because the economic and political stability of Vietnam coupled with its tourist attractions make it a magnet for people who are coming into the country in droves either for work or vacation and have a demand for real estate. There are construction projects, commercial properties, houses, villas as well as apartments that anyone can invest in in Vietnam.
Vietnam real estate investment: profitable or not
The goal of every investor is to make profitable returns on their investment, it is therefore rational to want to know if investing in Vietnam is profitable or not. Vietnam is a country with promising potential in real estate as noted from its continuous and rapid growth. It is the second-largest industry and offers many opportunities to investors. An individual could buy property under development in Vietnam, complete it, and sell it at a higher price, you may also buy an already completed apartment and rent it out for a steady income or resell it in a few years for more than you bought it proving that it is very profitable. The steady influx of people into Vietnam ensures a constant demand for real estate in the country which means that the value of your property will only continue to appreciate as time goes on. If this sounds attractive, you may buy flats for investment in Vietnam.
Who can invest in Vietnam real estate?
Many foreign countries have strict regulations on who can invest in their real estate and a common misconception is that Vietnam is one of those countries, which may have discouraged investors in the past. However, anyone can invest in Vietnam real estate including tourists, expats, foreign investors, or even companies. Although there are some restrictions to foreigners investing in Vietnamese real estate, the industry is still accommodating. Some of the conditions for foreigners include obtaining an Investment Registration Certificate if they’re investing in a construction project, or not owning more than 30% of units in an apartment building. Therefore, whether you are just a tourist having fun in Vietnam, an expat who is moving to Vietnam for work with or without family or you’re simply interested in investing in the country, Vietnam is open to foreigners.
Locations to consider when buying flats for investment in Vietnam
There are many things to consider when you want to buy a flat in Vietnam and location is one of the most important decisions to make before you buy a flat. Here are some locations you should consider and why you should consider them
- Ha Noi: Being the capital of Vietnam, Ha Noi is known for its historical architecture and rich culture whilst giving room for new developments to take place. It is the second most populated city in the country and is a hub for both tourism as well as business activities.
- Ho Chi Minh City: This city, which is also known as Saigon, was listed as one of the wealthiest cities in 2023; it is the most populous city in Vietnam. This city is so popular due to its rapidly expanding industries such as tourism, technology, telecommunications, electronics, and so on. Whether you’re an expat or a tourist, Ho Chi Minh City has something for anyone who enjoys living in a bustling city.
- Hoi An: Located on the central coast of Vietnam, this relaxed port city has the perfect mix of different cultures and eras from the Chinese temples to the French buildings and even the breathtaking Japanese Covered Bridge. The city has great food and amazing tourist activities meaning there would be tourists streaming in and looking for a place to stay.
- Da Nang: This city is known for its fine sand beaches, blue waters, its history as a French colonial port, and its unique geographical location. The city, known as the leading industrial center in Vietnam, not only has good tourism but, it boasts agricultural, aquatic as well as industry and construction activities which makes it a good place for anyone who wants to work in Vietnam
- Nha Trang: For anyone interested in sightseeing, exploring historical sites, and engaging in a ton of recreational activities, the city of Nha Trang is the place to go. It is home to Buddhist temples, old Catholic churches, waterfalls, and natural hot springs. The main economic sectors here are tourism, agriculture as well as construction.
- Other numerous cities in Vietnam would appeal to foreigners either based on the economic activities, tourist attractions, vibrancy, or serenity of the city. There are also other considerations after picking a location like the facilities available in the apartment complex as well as the size of the apartment. Read more on the official website – https://vietnam-real.estate/
Making the decision
Buying a property in a new country is a big decision especially if you’re moving over to Vietnam. However, before you decide to buy flats in Vietnam, you should take your time to study the regulations placed on foreigners investing in real estate to fully understand what you can or cannot own in Vietnam, the part of Vietnam you wish to invest in, the number and size of the apartment you’re planning to buy. You should also carefully research the agency you want to go through when purchasing the property. If possible, employ the services of a lawyer to get you through the process.