Mongolia Construction

The rapid expansion of Mongolia’s economy in recent years has had a knock-on effect on construction activity across the country. According to World Bank data, the construction industry grew by more than 25% over the course of 2012, primarily as a result of a handful of government-led infrastructure and housing investment programmes. While local...

With Mongolia’s economic boom in its early stages, several key questions remain unanswered that will have profound implications for its real estate sector in the future. A lack of urban planning has left the country with a serious pollution problem, transportation and infrastructure deficits, and a large-scale shortage of affordable housing.

The sector has been moving from a state-owned and -controlled industry to one driven by for-profit firms for the past two decades. However, this transition has been complicated by the challenges of extreme climate, a shortage of trained workers and logistical obstacles preventing the establishment of a steady flow of low-cost and on-time materials...

The cement sector features characteristics common to so many markets in the country’s economy: short supply, mushrooming demand, Chinese imports and plans to boost local capacity. The importance of new domestic supply cannot be understated, as the government’s plans in the next five years include $40.5bn in spending on major projects in energy,...

Thanks to a shortage of supply, Mongolia’s real estate sector is likely to feature fast-rising rents, land values and sales prices for at least the next several years and perhaps more. The market is highly focused on the capital city, Ulaanbaatar, which is under pressure due to a speedy rate of urbanisation; supply constraints due to capacity,...

Ulaanbaatar is the only city in Mongolia with more than 100,000 people, but opportunities outside the capital city are in many cases as attractive as those within its borders. Towns that have until now been sleepy frontier outposts are set for a transformation thanks to the mining sector – labour demands at the mines will mean the need for housing,...