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 construction firms have been a major presence in the industry since the mid2000s, the sheer scale of the work under way has the potential to put pressure…
Construction & Real Estate
From The Report: Mongolia 2014
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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.