Resort real estate - highlight of Vietnam’s property market in 2019

Illustrative image (Photo: VNA)

Tourism growth is considered a main contributor to the development of resort real estate, which is becoming an attractive investment channel in the country.

The number of international visitors to Vietnam recorded an average growth of 27 percent in the last two years, and Vietnam is one of the countries with the highest growth in East Asia.

The momentum is fueled by the rapid development of infrastructure, low-cost airlines; e-visa registration programme for 40 countries and visa exemptions for five European countries; domestic consumption; and the Government’s moves to encourage and promote tourism, and contributions from private investors.

According to Mauro Gasparotti, Director of Savills Hotels Asia Pacific, Vietnam is transforming from a destination with few options of accommodation and entertainment into an attractive destination for luxury tourism that is able to attract tourists back.

More and more domestic and foreign investors are interested in Vietnam's resort realty market and many investors also have an optimistic view on its potential.

Gasparotti said resort real estate is always considered an attractive segment for investors due to its stable growth.

The growth will continue in 2019 and become even stronger thanks to new global trends such as information technology which can further promote the development of tourism.

Experts said Vietnam is in a good position to capture growth opportunities, with tourist arrivals this year set to increase again. The market will receive a wave of new projects with international brands coming into operation such as Movenpick Cam Ranh and Melia Ho Tram.

According to Gasparotti, his firm encourages investors to research new trends and products that do not have much presence in the Vietnamese market such as branded residences and select service hotels or resorts with an emphasis on experience services to persify accommodation options and fill the needs of travelers.

Investors have a positive outlook on Vietnam's resort real estate market in 2019 and look forward to positive results, he said.