Real Estate
A: In response to these increasing levels of demand, the wholesale and retail industry within Mongolia has experienced solid growth over recent years. The number of establishments operating nationally within the retail industry increased from 26,725 to 28,152 in 2015 whilst the gross domestic product generated by these establishments increased by 5.3% between 2014 and 2015.
A: Demand is expected to remain strong into the medium term from firms across all sectors of the Mongolian economy, as business practices become increasingly sophisticated and require ever-larger quantities of back office staff.
A: Given the strong demand for Grade A office space in the Central Business District, together with the extremely limited supply side conditions, it is unsurprising that rental rates per square meter have more than doubled over the past few years. As of Q1 2016 rent for an upscale office in Sukhbaatar district ranges between $30/sm to $60/sm.
A: Valued at just $5.80/sm on average per month in 2005, residential rental prices increased steadily for several years, reaching a 206% rise to $17.80/sm on average at Q3 2012. Recent years have seen a decline with prices now generally $5-10/sm per month.
A: Expatriates and temporary visitors to Ulaanbaatar make up a large section of the city’s rental-market. Many just come for the summer, as consultants and temporary staff to both Mongolian and international operations, designed to give advice and implement western best practice. Most are young, with few commitments to tie themselves down in their countries of residence.
A slightly smaller, but equally important grouping is the growing class of executives, upper management and diplomats based permanently in the city. Demographically characterized as older males often tied down by family commitments, substantially more incentives are usually offered by firms to encourage them to bring their expertise out to the steppe.
Ulaanbaatar’s large student population drives the lower end of the market upon a seasonal basis.
A: Ulaanbaatar’s residential real estate market is extremely diverse, with international standard luxurious apartment complexes often located just a few hundred meters away from small, informal ger encampments.