Rental market growing
April 19, 2015
Mongolia´s rising property prices have resulted in stronger demand for rental property as households choose to rent rather than buy. Mongolia Properties estimates rental yields at about 15-18% per annum.
In Ulan Bator average rental yields between 2005 and 2013 were over 11% per year. Presently the average rental rate of:
- one-bedroom apartment for local residents is between MNT 300,000-500,000 MNT (US$151-252) per month
- two-bedroom apartments rent for between MNT 500,000-750,000 (US$252-378) per month.
Prices in the upper end of the residential rental markets (including those geared towards expats) have remained reasonably stable at around US$ 600-800 per month for a one-bedroom apartment near the CBD, based on M.A.D. Research estimates.
EXPATRIATE RENTAL MARKET |
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| Young professionals/ Voluntary service personnel | Professionals | Mid-management/ Consultants | Senior executives/ Heads of mission/ Diplomats | |
| Type of accommodation | Studio/ 1-bed/ shared | Studio/ 1-bed | Studio/ 1-bed/ 2-bed | 2-bed minimum, with separate kitchen |
| Floor size | 40-60 sqm | 40-80 sqm | 60-100 sqm | 120-300 sqm |
| Rental ceiling | US$500-US$900 | US$600-US$1,500 | US$1,200-US$3,000 | US$2,500-US$8,000 |
| Source: M.A.D. Research | ||||