Барилга, Үл хөдлөх хөрөнгийн зуучлалын салбарын нэгдсэн гүйцэтгэл
2. Construction and Real Estate Brokerage Industry Performance
Invescore Property LLC, 2024
- Construction Industry
The construction cost index increased by about 5% from the previous year, which is lower rate than the general inflation. The USDMNT exchange rate, transportation, and importing activities are expected to remain stable next year, so the cost of construction will not change much.
The construction sector's contribution to the GDP calculated by the production method reached MNT2 trillion in annual value. However, it is about MNT898 billion in the adjusted value, which explains 0.0% of the change in the total GDP. GDP grew by 7.0% year-on-year, while construction output grew by 0.6% only year-on-year.
Gross Domestic Product (GDP) by Production Method
Production of the Construction Industry in 2023
Overall performance of the construction industry
As of the third quarter of 2023, foreign, domestic, public, and private sector enterprises had completed construction, engineering structures, and capital repair works worth MNT5.6 trillion ($1.64 billion) and MNT2.7 trillion ($789.2 million) in the UB city. Performance in Ulaanbaatar increased by 30% compared to the same period last year.
Foreign direct investment
On average, Foreign Direct Investment (FDI) in the construction sector over the last 3 years constitutes approximately 1.37% of the total investment flow. In contrast, the mining sector, as the primary economic influencer, comprises around 80% of the total FDI inflow.
- Real estate brokerage industry
As of the end of 2023, 308 brokerage organizations are operating in Mongolia with a special license from the Financial Regulatory Commission. More than 192 of them have the right to provide property management services in addition to sales and rental brokerage. At the same time, there are 1,284 registered and professional agents in the FRC, which is a decrease of 211 or 14.1% from the same period of the previous year.
As of the end of 2023, 57,342 agreements for the sale and transfer of real estate were registered at the General Authority for State Registration. Of these, 10,343 deals, or 18%, were sold through professional real estate brokerage companies registered with the FRC.14 According to this data, professional companies only accounted for 18% of the total real estate transactions in 2023.
Real Estate Sale and transfer Agreements in 2023
by the Number of Agreements:
To be continued...
Economic State
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