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Residential Real Estate Transactions - Mongolia

Mongolia

In Mongolia, the market segment of Residential Real Estate Transactions market is expected to see significant growth.
By 2024, the transaction value is projected to reach US$206.30m.
Looking ahead, the market is expected to continue expanding at an annual growth rate (CAGR 2024-2029) of 6.20%.
This growth is predicted to lead to a market volume of US$278.70m by 2029.
Despite the challenges posed by its remote location and harsh climate, Mongolia's residential real estate market continues to thrive, driven by a growing middle class and increasing urbanization.

Key regions: Germany, Europe, Asia, United States, United Kingdom

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Analyst Opinion

The Residential Real Estate Transactions market in Mongolia has been experiencing significant growth in recent years.

Customer preferences: Customers in Mongolia have shown a strong preference for investing in residential real estate. This is due to several factors, including the country's stable economic growth, increasing urbanization, and a growing middle class. Additionally, residential properties are seen as a safe and reliable investment option, providing both rental income and potential capital appreciation.

Trends in the market: One of the key trends in the residential real estate market in Mongolia is the increasing demand for apartments and condominiums. This can be attributed to the rapid urbanization in the country, with more people moving to urban areas in search of better job opportunities and a higher standard of living. Apartments and condominiums offer a convenient and affordable housing option for urban dwellers. Another trend in the market is the rise of real estate investment trusts (REITs). REITs allow investors to pool their money together to invest in a diversified portfolio of residential properties. This provides individual investors with an opportunity to participate in the real estate market without the need for large capital investments.

Local special circumstances: Mongolia's unique geographical location and natural resources have also contributed to the growth of the residential real estate market. The country is rich in mineral resources, such as coal, copper, and gold, which has attracted foreign investment and led to an increase in job opportunities. As a result, there has been a surge in demand for housing, particularly in mining towns and cities.

Underlying macroeconomic factors: Several macroeconomic factors have played a significant role in the development of the residential real estate market in Mongolia. The country has experienced steady economic growth over the past decade, driven by its mining sector and increasing foreign investment. This has resulted in a rise in disposable income and a growing middle class, who are increasingly looking to invest in residential properties. Furthermore, the government has implemented policies to support the real estate market, such as providing incentives for foreign investors and implementing housing programs for low-income households. These initiatives have helped to stimulate demand and attract investment in the residential real estate sector. In conclusion, the Residential Real Estate Transactions market in Mongolia is experiencing growth due to customer preferences for residential properties, increasing urbanization, and a growing middle class. The market is characterized by a demand for apartments and condominiums, as well as the rise of real estate investment trusts. The country's unique geographical location and natural resources, along with steady economic growth and government support, have also contributed to the development of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.