Although the construction sector faces a number of challenges, such as the lack of a well-trained local workforce and low levels of domestic materials production, the sector is expected to benefit from increasing government investment in housing and infrastructure. Mongolia has a severe lack of affordable housing, and addressing this shortage is expected to be a major driver of construction activity in the foreseeable future. In addition to housing projects, modernizing and expanding Mongolia’s transport links and utilities networks is a key area of focus at present.
Only Mongolian citizens are currently allowed to own land; however, foreigners can obtain usage rights to land and own buildings and other structures. While a number of challenges remain, most local players expect Mongolia’s real estate sector to continue to grow for the foreseeable future. New activity bodes well for the country’s long-term development prospects.
This chapter contains interviews with E. Bat-Üül, Governor of Capital City and Mayor of Ulaanbaatar; and E. Jargalan, CEO, Erel Group.