This document summarizes trends in Mongolia's real estate market between 2007-2014. It shows that property prices increased significantly until the late 2000s but declined in 2009 due to the global financial crisis. Prices have since recovered and Mongolia's luxury property prices and yields rank competitively compared to other emerging markets. Government policies like subsidized mortgages have supported growth in the housing sector while rising incomes have increased demand. The retail property market has also expanded, especially in the capital city of Ulaanbaatar, though rental rates vary by location. The government has outlined plans to develop new commercial centers to accommodate future population growth.

1. Private & Confidential
Trends and Dynamics of the Real Estate Market in UB

2. Private & Confidential
Real Estate Growth
-60%
-40%
-20%
0%
20%
40%
60%
80%
2007 2008 2009 2010 2011 2012 2013 2014
PriceIncrease%
Mongolia vs. Emerging Country Real Estate Markets
Global Emerging Markets Asian Emerging Markets Mongolia property price per sqm

3. Private & Confidential
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
Luxury Residential Price & Yield Ranking, 2013 Title
Luxury residential price US$/sqm
Yield
Residential

4. Private & Confidential
2013. 06 2013. 07 2013. 08 2013. 09 2013. 10 2013. 11
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Central Bank and Government Subsidized Mortgage Pool Status
Total Pool from Chinggis Bond (Source: Oxford Business Group)
Accumulated(Outstanding) Subsidized Mortgage Balance (Source: Central Bank of Mongolia)
Mortgage Policy

5. Private & Confidential
Rising Incomes
0
100
200
300
400
500
600
700
800
20041/4
20042/4
20043/4
20044/4
20051/4
20052/4
20053/4
20054/4
20061/4
20062/4
20063/4
20064/4
20071/4
20072/4
20073/4
20074/4
20081/4
20082/4
20083/4
20084/4
20091/4
20092/4
20093/4
20094/4
20101/4
20102/4
20103/4
20104/4
20111/4
20112/4
20113/4
20114/4
20121/4
20122/4
20123/4
20124/4
20131/4
Average Monthly Wage (thousand MNT)

6. Private & Confidential
Retail Space
0
20
40
60
80
100
120
Nukht Valley Ulaanbaatar CBD Downtown Jakarta Downtown Hanoi
Cost/sqmUS$
Average Monthly Retail Rental
UB Khan Uul

7. Private & Confidential
Government Masterplan 2020
Center of city
Sub Center of city
Center of district
Center of location

8. Private & Confidential
Zaisan

9. Private & Confidential
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