Mongolia Construction

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Chapter | Construction & Real Estate from The Report: Mongolia 2013

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...
The government’s approval of a bond release over the next two years to help fund major infrastructure projects should provide a much needed boost to the construction housing and transport sectors, with affordable housing and road connectivity cited as top policy concerns.
A wave of new infrastructure and phased housing projects in Mongolia looks set to give the country’s construction sector a huge boost while also generating wide-ranging opportunities for foreign investors in the building industry.

The process of urbanisation globally is undeniable and irreversible. According to McKinsey, the world’s 600 major cities will house 2bn people by 2025, or 25% of the global population. These urban centres will generate 60% of global GDP. Similarly, an April 2011 report by Frost & Sullivan, a business research and consulting firm, noted that “...

Mongolia’s retail, office and hotel segments have seen some positive developments in recent years. High-end commercial space in the capital, Ulaanbaatar, is currently valued at something of a premium. As with the residential sector, the commercial segment was badly impacted by the international economic downturn in 2009, with many projects suspended...

Urbanisation has been a major factor in shaping modern Mongolia. Recent demographic changes in the country’s four major geographical areas have stark implications for the construction sector. In 1990 the percentages of the population living in the Western Region and the Khangai Region were similar to those living in Ulaanbaatar, at 20%, 27% and 26...

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