*Sources: Mongolian Properties, Hindustan Times
Real Estate in Emerging Markets: Historical Rental Yields
Mongolian Properties Monthly Revenues
Cyclical nature of revenue sees increased property sales during the summer months
Supply Constraints + Expanding Demand = Rising Prices
A Broad View: The City of Ulaanbaatar
Ulaanbaatar is Expanding Outward
Accommodation in Ulaanbaatar
Residential Market
Residential Market
Ulaanbaatar Averages
The Olympic Residence
13% Rental Yield Prime Location in the CBD US$3,500 psm
Residential Price Projections (US$ Per Square Meter)
66% Increase 2012-2014
250% increase in consumer spending over the last 5 years
Real incomes growing at 10% per annum
27% increase in registered businesses year-on-year between 2009-2010
Recently upgraded from a low to a middle income country
Retail Market
Demand for Luxury Goods ‘Aspirational Consumerism’
Source: World Bank
Consumer Spending Growth Drives Demand
0
1
2
3
4
5
6
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Demand for Luxury Goods ‘Aspirational Consumerism’
Zaisan Valley
2009 2010
Nukht Valley
2013 Future?
The Village at Nukht
14% Rental Yield
Strategic position in
Nukht Valley
$2,500 psm
Macro-Trends: Past and Future
Sources: World Bank WDI, IMF WEO, Mongolian NSO, Mongolian FIFTA
Mortgage Market: Past and Future
Sources: World Bank WDI, IMF WEO, Mongolian NSO, Mongolian FIFTA
Retail Price Projections (Per Square Meter)
50% Increase 2012-2014
Commercial Market
Limited Grade A Office Space in CBD More and More International Firms Opening Offices in Ulaanbaatar
Pollution and Infrastructure Drives Demand for Alternative Office Space
New, Rapidly Growing Companies
New, Rapidly Growing Companies
Conclusion: Sustained Growth in the Medium Term
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