Office Market Forecast in 2022
The COVID-19 pandemic has brought many difficulties and great fluctuations to the office market in 2021, but how will the office rental market in 2022 develop?
Outlook for the office leasing market will recover despite the development of COVID-19
In the past two years, the COVID-19 pandemic has changed almost everything. Especially the significant decline of the economy in many countries around the world. In which, it is impossible not to mention the field of office real estate, when a series of businesses declared bankruptcy and returned the premises, causing a serious drop in the demand for office rental in the market.
But despite COVID-19 and other risks, the office leasing market in 2022 has the prospect of recovering again.
As they progress on universal vaccination is completed and people gradually adjust to the “new normal” life, labor shortages, supply disruptions, inflation, and other COVID variants will gradually subside. Economic – commercial activities will gradually recover, workers return to the office to work more, leading to an increase in demand for office use and rental.
Notably, Vietnam’s economy is expected to develop positively in 2022. Forecasts of the World Bank and ADB, GDP growth will increase to 7%, up 3.2% compared to 2021. Office rental demand from foreign companies will increase again thanks to FDI inflows into Vietnam as well as free trade agreements (FTAs).
However, many businesses have been rebuilding their working methods to adapt to the “new normal” life. Flexible office space, safe working environment to cope with COVID-19 will become a new trend in the future. Investors need to consider and plan short-term and long-term strategies following the needs of the market.
As for office tenants, the first and second quarters of 2022 are good opportunities to decide to rent or move to a new office. When the market is still keeping the balance between demand and supply. Investors still maintain the asking price during the epidemic.
Which segment will lead the office rental market in 2022?
The COVID-19 pandemic has had a significant impact on business office needs. Many businesses, because they want to save budget and cope with the spread of the COVID virus, have converted to a more flexible office type than a shared office (also known as a co-working space).
The shared office has outstanding advantages such as The rental price is double or much cheaper than the traditional office, or the package office; flexible rental area; short contract period; furnished office; creative workspace… These are the benefits that small and medium businesses seek.
OFFICES IN THE OUTSIDE OF VIETNAM
To save office rental costs, many units have paid office space in the central area with high development conditions, moved to offices located outside the center such as district 2 office, district office 7, Binh Thanh District office…
In addition, with the short-term central land fund situation, investors have moved many new office projects to neighboring areas. Therefore, in the coming time, the development trend of office 2022 will still be poured into non-central positions.
However, contrary to the influx, a few businesses see it as a good opportunity to move to the center. Specifically, businesses operating in fields such as banking, finance, insurance … were not affected much during the recent epidemic. Therefore, they take advantage of this time to find suitable rental areas in standard Grade A office buildings, with better technology applications and conditions.
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