Mongolia is an attractive investment opportunity. In the past five years, foreign direct investment in the country has doubled. This is in large part due to the mining industry as Mongolia is home to large mineral deposits. With an estimated 100 billion metric tons in coal reserves, 3,000 tons of gold, and 62,000 tons of uranium, Mongolia is sitting on a substantial amount of wealth. In October 2009, Mongolia signed the Oyu Tolgoi agreement allowing for the extraction of minerals from one of the largest gold and copper deposits in the world. For many foreign companies, this signals the beginning of significant mineral extraction and wealth creation for the country of Mongolia.

With a booming mining sector and a low population, Mongolia is expected to see economic development such as that experienced by oil-rich Middle Eastern countries. This will mean excellent returns in general for people that invest now into the country.

The strong growth in Mongolia has not gone unnoticed by sophisticated property investors, who have recently started investing in Ulaanbaatar property developments. During the past few years, apartment prices per square meter have grown by approximately 18-27%. The growth looks set to continue over the next decade as the resource boom, led by gold discoveries continues to develop. Low taxes, high asset appreciation, and high rental yields create opportunities for significantly higher return on investment than those available in more developed markets.

With the government signing of the Oyu Tolgoi agreement, an agreement that governed the extraction of the largest untapped copper and gold reserve in the world, it is likely that this growth will continue. FDI is pouring in from companies Ivanhoe and Rio Tinto to extract the minerals. These investments, coupled with the revenues, are expected to greatly bolster the local economy.

But gold and copper are only the beginning of the mining story. Mongolia is estimated to have potential coal reserves of 125 billion metric tons with a significant portion located at the Tavan Tolgoi mine in the southern Gobi. With China purchasing up to 22 million tons of coal per month, Mongolia will likely have a long-term customer to the south. Foreign Direct Investment has grown at an explosive rate from US$25m in 1997 to US$344m in 2006. A large proportion of FDI has been channeled into the construction and mining industries, which are currently experiencing rapid growth.

Mongolia is starting to draw the attention of many savvy investors. As mining operations begin on the largest untapped gold and copper reserve in the world many business analysts and experts have forecasted double digit GDP growth. With increased economic activity, Ulaanbaatar is expected to attract even more multinational corporations and continue to create a more affluent class of Mongolians. Many predict that this will cause demand for luxury apartments to continue to outpace the limited supply in a city where rental yields often reach shocking levels of 18%.

Mongolian Properties was the first real estate agency in Mongolia and remains the largest real estate company catering to expatriates.  Mongolian Properties assists with all types of property transactions including residential, commercial, office and retail, factory and warehouse, tourism, and mining community development.

To further meet the needs of its domestic and overseas clients the firm has also diversified into relocation services as well as facilities and property management. This full service approach to our clients has been necessary due to the remote nature of Ulaanbaatar. It has also enabled the company to provide a comprehensive list of services to its clientèle. The company publishes the Mongolian Real Estate guide on a semi-annual basis. The guide is the nation’s only English language publication related to real estate.

Mongolian Properties Construction Corporation specializes in the construction of high-end residences in the capital city of Ulaanbaatar. The company is currently working on the Regency Residence, scheduled to open in early 2010.

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Incorporated in Hong Kong with primary activities in Mongolia, APIP is dedicated to seeking unique investment opportunities in the emerging markets of Asia and beyond. With a strong focus on real estate investment and management, the partnership has developed residential, commercial, and resort properties in markets with potential for high revenues and capital gains.

APIP has invested into majority positions while taking operating control within its investments. The APIP group of companies together represents one of the most successful foreign invested companies in the country of Mongolia with over 200 employees and growing.

Established in 1961, Pöyry’s designs integrate commercial, urban, technical, design and sustainability perspectives with the local community to develop strong architectural concepts. Based in Finland and working on projects all over the world, is one of Europe’s leading architectural and consulting groups.

The Ideal Group is a member of the union of Mongolian architects and routinely cooperates with other foreign conceptual and architectural design firms worldwide.