The Future of Condotels in Vietnam: Opportunities, Challenges, and New Trends
The future market of condotels in Vietnam once experienced a boom then slowed down, making many investors question the future of this segment. However, with changes in legal frameworks, growing tourism demand, and increasingly professional operating models, condotels are gradually regaining their position. The article below will help you see a clear overall picture and opportunities in the coming period.
▲Table of Contents
1. Overview of the condotel market in Vietnam today
1.1. Concept of condotel and model characteristics
Condotel is a type of real estate that combines an apartment and a hotel, serving both accommodation and investment for rental purposes. Each unit is designed like a fully equipped apartment but operates under a hotel model, with a professional management unit handling operations. A prominent characteristic of condotels is their limited-term ownership tied to commercial service land, typically around 50 years. Investors do not operate directly but authorize a management unit, with revenue derived from sharing profits from room rentals.
Condotel is a hotel apartment, owned for 50 years, generates profit through professional management. (Source: Collected)
1.2. Development process of condotels in Vietnam
The period from 2015 to 2019 witnessed the boom of condotels in coastal tourist areas, with tens of thousands of products licensed. Many projects focused on Da Nang, Nha Trang, Phu Quoc and quickly attracted large investment capital. Afterwards, the market entered a period of stagnation due to legal issues and profit commitments. Since the pandemic, some signs of recovery have appeared, but it still needs more time to consolidate investor confidence.
1.3. Current status of supply and demand
Current condotel supply is mainly concentrated in major tourist destinations such as Khanh Hoa, Kien Giang, and Da Nang. During peak periods, the market has recorded tens of thousands of apartments launched simultaneously. However, absorption rates fluctuate cyclically, depending on the economic situation and tourism demand. This indicates that the condotel segment is highly seasonal and strongly influenced by market trends.
The Condotel market is gradually stabilizing thanks to transparent legal frameworks and operational quality. (Source: Collected)
On the other hand, the demand for resort stays continues to grow along with the recovery of domestic and international tourism. After a restructuring phase, the demand for condotel investment is gradually stabilizing thanks to legal transparency. Current projects are no longer racing in quantity but are focusing on operational quality and actual exploitation capabilities to meet investor expectations.
2. Condotel Legal Framework in Vietnam in the New Phase
2.1. Regulations on Condotel Ownership
According to the Land Law 2024 No. 31/2024/QH15, condotels are clearly defined as a type of construction with the function of serving accommodation purposes on commercial and service land. Based on the guiding Decree, eligible condotel apartments will be granted a Certificate of Land Use Rights, Ownership of Assets Attached to Land (pink book) with ownership duration corresponding to the project's land allocation or lease period, usually 50 years and a maximum of 70 years. This ends the period of legal ambiguity, helping investors feel secure about the legal ownership of their assets.
2.2. Regulations on condotel business and operation
The Law on Real Estate Business 2023, No. 29/2023/QH15, has officially legalized existing and future real estate types, including tourist apartments (condotels). Accordingly, investors must comply with strict regulations on project information disclosure, bank guarantees, and standard contracts. The operation of condotels requires a professional management unit, ensuring accommodation standards and operational efficiency. These regulations help protect customer rights, standardize the buying and selling process, and minimize disputes arising during operation.
Condotel legalization helps to make the market transparent and protect buyers' rights. (Source: Collected)
Legislative changes affecting investors
Changes from the Land Law 2024 and the Real Estate Business Law 2023 help make the market more transparent, especially regarding the issuance of land use rights certificates and the establishment of ownership rights over non-agricultural land. This contributes to eliminating "pending" legal risks and creates a basis for clearer transfer and mortgage transactions. The legalization of condotels within the legal system helps increase investor confidence, creating an important premise for the sustainable development of this segment amidst a strongly transforming market. This is an important premise for the future of condotels in Vietnam in a restructuring market.
3. Opportunities for condotel development in the coming period
3.1. Strong growth of Vietnam's tourism industry
Vietnam's tourism industry is recovering strongly after the pandemic, with domestic and international visitor numbers increasing rapidly year by year. Demand for accommodation in coastal destinations and luxury resorts continues to rise. This growth provides a foundation for condotels to develop again, especially in areas with complete tourism infrastructure. This is a positive supporting factor for the future of condotels in Vietnam .
The recovery of tourism and completed infrastructure is a lever helping Condotels to strongly develop again. (Source: Compiled)
3.2. Investment trends in resort real estate
Investors are increasingly interested in assets that generate stable cash flow rather than just price appreciation. Condotels fit this trend thanks to their ability to be exploited for rent and profit sharing. Besides, diversifying investment portfolios also drives demand for resort real estate. Condotels become an intermediate option between real estate and financial assets.
3.3. Participation of large corporations
Large real estate corporations continue to participate in the development of condotels in key tourist areas. This helps to raise the standards of project construction and operation. The participation of large enterprises also helps to increase the transparency and credibility of the market. This is an important factor for attracting long-term investment capital.
3.4. Professional operation model according to international standards
Many condotel projects today partner with international hotel management brands. This helps improve operational efficiency and service quality. A professional operating model also helps optimize revenue and reduce risks for investors. This is a necessary trend to enhance the competitiveness of condotels in the long term.
Cooperation with international brands helps Condotels improve operational quality and optimize revenue for investors. (Source: Collected)
3.5. Potential in emerging markets
Besides traditional markets, many localities such as Binh Dinh, Phu Yen, and Quang Binh are emerging with condotel development potential. These areas have large land reserves and reasonable investment costs. The development of transportation and tourism infrastructure in these localities creates conditions for condotels to expand. This is a new opportunity for the future of condotels in Viet Nam in the coming period.
4. Challenges and trends of condotels until 2030
4.1. Risks of profit commitment
Some previous condotel projects offered high profit commitments but failed to deliver, leading to disputes. This has affected investor confidence in the market. The current trend is shifting towards a revenue sharing model based on actual revenue instead of fixed commitments. This helps reduce risks and accurately reflects the project's operational efficiency.
4.2. Competitive pressure from other types of accommodation
Condotels must compete with many types of accommodation such as vacation villas, homestays, or traditional resorts. Each type has its own advantages in terms of experience and rental price. To compete, condotels need to upgrade service quality and diversify amenities. This is the decisive factor for attracting guests and maintaining occupancy rates.
Competition with many types of accommodation requires Condotels to upgrade services and diversify amenities to attract customers. (Source: Collected)
4.3. Requirements for legal transparency and operational management
Legal transparency is an important condition for the condotel market to develop stably. Clear regulations on ownership and operation help reduce risks for investors. Besides, professional operational management helps ensure exploitation efficiency and maintain service quality. This is the core factor determining asset value.
4.4. Condotel development trend linked to ecosystems
Condotels are being developed within integrated tourism complexes offering many amenities such as entertainment, shopping, and relaxation. This model helps enhance customer experience and extend stay duration. Integration with an ecosystem helps condotels optimize operational capacity and increase value. This is an important trend shaping the future of condotels in Vietnam.
The picture of the future of condotels in Vietnam is no longer a story of hot growth but is moving towards a more sustainable, transparent, and professional development phase. As the legal framework is gradually perfected and the tourism industry continues to break through, condotels remain a potential investment channel if investors choose the right projects, at the right time, and have a long-term strategy.