As a developing city, demand for housing in Ulaanbaatar remains high.
Over half of the residents of Ulan Bator still live in traditional dwellings known as Gers, or in housing not well connected to permanent infrastructure. So there´s big demand in the high rise apartment market encouraged by rising wages and massive government-sponsored access to mortgage financing.
Rental yields, in Ulaanbaatar Mongolia, for luxury residential properties in Ulan Bator are high, at around 10%, according to the Q2 2019 economic update
The average apartment price in Ulan Bator currently stands at MNT2.2 million (US$815) per square meter (sq. m.), according to The UB Post's (August 2019 interview with B. Javkhlan, CEO of real estate portal <www.oly.mn>. However, in the capital city’s central business district (Sukhbaatar district), that caters to expats and the ultra-rich, prime residential prices averaged MNT 8.53 million (US$ 3,158) per sq. m.
Limited supply of good quality apartments translates to high rental yield
Good rental yields for luxury residential properties in Ulan Bator is "...partially driven by a growing number of expatriates in the city who have created additional upward pressure on the leasing market for high-end units,” said the Mongolian Properties. Most of the rental apartments that cater to foreigners and expats are relatively expensive, with a monthly rent of about MNT 5 million (US$1,851) to MNT 6 million (US$2,222)
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