While investing in emerging markets such as Mongolia can be rewarding, it must be done with great care.
The Mongolian Real Estate market has, since its early days of privatisation, consistently showed great potential and promise. With an average capital growth of 15% and an average net yield of 9% along with strong fundamentals, a rule of law and no restrictions on ownership the market is amongst the most attractive in world. Today the property market of Ulaanbaatar is one of the very few sectors that has remained relatively immune from the regular boom and bust cycles of what is still an emerging commodity driven economy.
The market must never the less be approached with great caution. Not only is it still a very immature and unsophisticated market, it is also a very small market where small changes can have considerable impacts. It is essential that investors and market actors do fall into the common believe that in frontier markets such as Mongolia, research and due diligence plays a less important role, it is the contrary that is true. A profound and comprehensive understanding of all laws, market drivers and key actors must be obtained prior to any investments. M.A.D. Investment Solutions professionals has been active in the Mongolian Real Estate sector for the past decade and can bring their invaluable knowledge to help our clients better understand the market and its implications.