Rather than simply intensifying competition among developers, the wave of new supply is also creating opportunities for many businesses to upgrade and relocate to higher-quality workplaces, thereby improving operational efficiency and enhancing the employee experience.
This trend is also evident in many markets around the world. According to Savills' Global Occupier Outlook 2026, 89% of the markets surveyed expect Grade A office rents to continue rising, while 82% anticipate stronger leasing activity in the coming period. Instead of expanding the number of offices they occupy, many global businesses are focusing on higher-quality buildings that offer convenient locations, modern working environments and integrated amenities to support their long-term development strategies.
For international investment capital, Savills World Research reported that office properties attracted the largest volume of cross-border investment during the first half of 2026, reaching 22.3 billion USD and accounting for nearly one-quarter of total global cross-border transaction volume. This demonstrates that investor confidence in high-quality office assets remains strong despite changes in the way businesses utilise office space.
According to Savills Viet Nam, the Ha Noi office market is expected to welcome approximately 403,000 sq m of new supply from 20 projects between now and 2028, with most developments comprising Grade A office space concentrated in the western part of the city and its expanding inner districts.
The increase in supply does not indicate weakening demand. On the contrary, the market is witnessing many businesses taking advantage of the opportunity to upgrade their office premises. During the first quarter of 2026, most leasing transactions in Ha Noi were driven by companies relocating to newer, higher-quality buildings, helping maintain the overall market occupancy rate at 86%.
This reflects a shift in the way businesses evaluate office space. Whereas cost and location were previously the primary considerations, companies are now placing greater emphasis on how effectively an office can support their business operations. Operational quality, floorplan flexibility, integrated amenities, client reception areas, and the ability to accommodate international specialists have become increasingly important factors in leasing decisions.
To meet these evolving requirements, many new office developments are being designed as integrated mixed-use projects. IFC Hanoi, located in the West Lake West area, is one such example, offering more than 83,000 sq m of Grade A office space within a complex that also includes a hotel, serviced apartments and a retail component. This model enables businesses to combine office space, accommodation, client hospitality and supporting services within a single location, thereby optimising day-to-day operations.
William Gramond, Director of Commercial Leasing at Savills Ha Noi, commented that "The growing supply of new office developments is providing tenants with a wider range of choices. The market is seeing many businesses seize this opportunity to relocate to higher-quality buildings rather than simply renewing leases in their existing offices. This presents an opportunity for companies to upgrade their working environment while optimising their long-term cost strategy."
He also noted that, in an increasingly competitive market, the competitive advantage of an office development no longer depends solely on its location or rental price. Instead, its ability to meet the increasingly diverse operational needs of businesses will determine its attractiveness in the market. For developers, this means creating differentiated value through product quality, property management services and a comprehensive ecosystem of amenities, rather than relying solely on the addition of new supply.
