Entering 2026, Hanoi’s real estate market is expected to continue moving into a new cycle, driven primarily by infrastructure development, urban spatial expansion, and the ongoing restructuring of the housing supply.

Experts believe that apartment price growth will be difficult to cool down in the first half of 2026, although the pace of increase is likely to slow.

Previously, throughout 2025, Hanoi’s apartment market recorded a clear improvement in both supply and transaction activity, while absorption rates remained at a high level. New supply reached its highest level compared to the same period over the past five years (2021–2025). This development helped sustain a strong recovery in overall market transactions.

While supply and liquidity improved, the overall price level continued to rise sharply over an extended period. Over the past five years, apartment prices in Hanoi have increased by an average of approximately 26% per year and are currently more than 200% higher than in 2019.

According to Ms. Đỗ Thị Thu Hằng, Senior Director, Research & Consultancy Department, Savills Hanoi, apartment prices in Hanoi are expected to maintain an upward trend in 2026, although growth may be more moderate than in previous phases. Several factors suggest that prices are unlikely to cool, at least in the first half of 2026. Chief among these is the impact of the new Land Law and the 2026 Land Price Framework, scheduled to take effect from January 1, 2026, with land prices set closer to market levels. This will increase developers’ input costs, including land-use fees, site clearance expenses, and compensation costs.

In addition, construction costs continue to face pressure from rising material prices, labor costs, and financial expenses, forcing developers to pass these increases on to selling prices. At the same time, the supply–demand mismatch has yet to be fully resolved. Although housing supply in 2026 is forecast to improve compared to previous years, most new supply remains concentrated in the mid-range and high-end segments, while affordable housing projects remain scarce. As a result, the average price level across the market is expected to remain elevated.

Savills Vietnam assesses that infrastructure will continue to be the key driver of the market, with Dong Anh, western Hanoi, and southern Hanoi emerging as high-potential areas. The strong development of major infrastructure projects will be the most important driving force for Hanoi’s real estate market in the coming years. In particular, the commencement and acceleration of new bridge projects, along with the completion of ring roads and new metro lines such as Metro Line No. 2 and Metro Line No. 5, will play a critical role in expanding urban space, improving connectivity, and increasing housing supply.

Notably, ring roads such as Ring Road 1, Ring Road 2.5, Ring Road 3.5, and especially Ring Road 4 are being implemented with clearer progress compared to previous periods. Recent developments show that land compensation, site clearance, and infrastructure construction have seen increasingly positive improvements, laying an important foundation for housing market growth.

Driven by infrastructure development, the outlook for Hanoi’s housing market is expected to show clear regional differentiation. Areas where infrastructure connectivity is realized earlier will enjoy stronger prospects. Locations such as Dong Anh and western Hanoi are considered near-term investment destinations due to their direct benefits from ring roads and radial transport corridors, while medium-term prospects are gradually expanding toward the southern part of the city.

Beyond infrastructure, regional prospects also depend on supply readiness. Areas where developers have completed legal procedures, prepared for investment, and can bring products to market quickly will have a clear advantage in attracting both end-user demand and investment demand. If more reasonably priced products are introduced, Hanoi’s housing demand potential can be better unlocked, especially as some investors are currently expanding their search for opportunities in neighboring markets such as Hung Yen, Hai Phong, or further afield in Da Nang and several southern provinces.