Construction & Real Estate

Mongolia’s real estate sector is likely to feature fast-rising rents, land values and sales prices for at least the next several years. Per capita GDP is forecast to triple by 2016, creating a jump in buying power that will add to an already short supply of homes in the capital. Thus Ulaanbaatar seems poised to experience major price hikes. There is an increasing demand for housing as the nation’s young population is moving from extended-family households to nuclear ones. There has been little interest in building low-cost or middle-income housing so far. According to some estimates, another 175,000 housing units are needed in the capital alone. However, the construction sector’s present building capacity is estimated at around 6500 apartments per year. Mongolia’s construction industry is young and growing and thus far has been unable to keep up the demand generated by the mining boom. Should Mongolia succeed in firming up its legal environment, it can expect a great deal more foreign interest and investment. This chapter contains interviews with D. Battur, President of Jiguur Grand Group, and J. Od, President of MCS Group.