Invescore Property LLC, 2024

• Need for residential real estate is high

Ulaanbaatar city has 1.7 million residents or about 430 thousand households. Less than ​50% of all households live in apartments, and the essential need for apartments and ​houses connected to the infrastructure has been consistently high. In addition, an ​average of 28,000 people (more than 7,800 families) move to the capital every year, ​and about 30,000 children (equivalent to more than 8,000 families) are born.

Internal migration to Ulaanbaatar city

Source: Statistics department of Capital city

Institutions will enter built-to-rent sector

Among the types of investment properties, the rental housing sector is the most stable, ​least volatile, and least risky type of investment. In any economic cycle, the demand is ​maintained and can be described as consumer goods if compared to retail market. ​Because a certain percentage of the total population is always a renter segment, it is a ​regular phenomenon, and there are always groups of people in society, such as ​families who are saving until they buy a house, students, and people who migrate with ​their jobs.

To be continued...

• There is a growing need for entertainment projects
  

The rapidly growing tourism industry of Mongolia needs to become more competitive ​and family-friendly, meet the entertainment needs of domestic residents, and develop ​a recreation, leisure, and entertainment complex that includes specialized services for ​all ages of the family.

Specifically, in addition to increasing winter tourism, water parks, indoor swimming ​pools, arcades, hot springs, hotels, shopping centers, casinos, etc., can be ​concentrated in complex facilities that will meet the needs of domestic families during ​the four seasons.

To be continued...

• The need for senior-oriented facilities will increase
  

Mongolia's demographic trends mirror those of other developing nations. As such, it is ​imperative to make early preparations for an inescapable future wherein the ​percentage of individuals aged 0-35 in the population will diminish, while the ​proportion of those aged 60 and above will rise considerably, as per the forecasts until ​2050.

As the elderly population continues to grow, the demand for facilities that cater to their ​unique needs will inevitably rise. These facilities may include attractions, shopping ​services, medical facilities, special-purpose residential towns, and 1-story house ​towns. In order to stay ahead of the competition, project developers should establish ​partnerships with these service providers and fortify their business models early on. ​Alternatively, they may opt to introduce international franchise management to gain a ​leading edge in the market. By doing so, they can position themselves to capitalize on ​the lucrative senior living industry.

To be continued...

• Needs beyond HOA = Property Management
  

Professional organizations specializing in property management are contracted by real ​estate owners to enhance the value of their property and maintain high occupancy ​rates. The efficacy of these organizations is evaluated by both property owners and ​tenants alike, with the aim of meeting the needs of both parties. By utilizing a range of ​best practices, including regular maintenance, tenant screening, and marketing ​strategies, these organizations can help both property owners and tenants to achieve ​their goals.

Over the last few years, there has been a rapid increase in the number of ​organizations that offer this service. These organizations primarily work on office, ​retail, and serviced-apartment projects. However, there is potential to expand this ​type of service to house projects and projects related to warehousing and logistics in ​the future.

To be continued...

• There is a lack of storage and logistics facilities
  

In 2023, coal exports reached a historic level, and the financial indicators of the ​nation's largest e-commerce platform became profitable for the first time. Transport ​logistics centers, warehouses, and distribution facilities based on foreign trade and ​online trade will be in demand in the medium term.

The availability of this type of property is clearly in short supply even at the current ​level of the economy, so the shortage will become an issue as the economy grows in ​the medium term. Therefore, project developers and investors can quickly adopt ​international best practices and gain high returns by being the first in the market.

To be continued...