Condotel 2026: Clearer Legal Framework Brings Cautious Investor Return

The period from 2018 to 2022 saw the rise and fall of the condotel segment in Vietnam. Thousands of investors poured money into hotel-apartment units with guaranteed returns of 8–12% per year, only for many projects to default on commitments, leading to lengthy legal disputes. That picture is slowly changing in 2025, albeit unevenly.

The most significant positive development in 2025 is that the Decree implementing the new Land Law now provides clearer regulations for condotels and officetels — two property types previously left in a legal grey area. Condotels are now defined as commercial real estate, ineligible for residential pink books, but eligible for commercial service land-use certificates with a 50-year term.

Provinces including Da Nang, Khanh Hoa, and Phu Quoc have begun issuing certificates for qualifying condotel projects, establishing a legal basis for secondary market transactions. This is a meaningful step forward, though the number of certificated projects remains limited relative to the tens of thousands of units still in legal limbo.

In market terms, condotel prices in major tourist destinations have corrected 20–35% from their 2019–2020 peaks, bringing valuations to more reasonable levels. Actual rental yield now ranges from 4–7% per year — far below previously guaranteed figures, but more accurately reflecting the genuine operating performance of tourism assets.