Vientiane real estate investment booming
Growth in real estate construction in Vientiane is expected to double this year to 10 percent compared to 5 percent last year.
Thanks to the government's 2011 policy which allows local residents to lease their land to foreigners, as well as the establishment of Special Economic Zones, investment in real estate development is booming.
Managing Director of real estate agency Rentsbuy.com, Mr Houmphan Saiyalath pointed out that construction of apartments, condominiums and offices for rent was continuing to increase because work on several giant projects had recommenced.
For example, projects such as Vientiane New World, Vientiane Centre, Lao World, Latsavong Plaza, Sky City and That Luang Marsh Special Economic Zone with the construction of 18 condominium towers are progressing smoothly.
Chinese developers and others are continuing to invest in real estate in preparation for later this year when Laos joins the Asean Economic Community, which will make the country even more attractive for investors.
At present, there are various investors, especially foreign experts of non-government organisations entering the capital along with foreign banking staff who are being targeted by real estate developers' marketing.
Furthermore, Mr Houmphan explained that while investment in apartments and condominiums was continuing to soar, house construction for renting or sale was growing as well being t he major market focused on local residents.
Investment in real estate in Vientiane's centre was now reaching a peak, which meant there was not as much room for growth as compared to the suburbs where the government was now focusing its many infrastructure developments to encourage decentralisation of the capital.
He believed this would further push the expansion of real estate investment in Vientiane's suburb.