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Mongolia’s new investment law attracts foreign buyer interest from across the globe

October 22, 2013Article by Ray Withers

Our investors know that here at Property Frontiers we seek out the best investments from around the world. Mongolia first came to our attention back in 2007, when our pioneering residential developments in the capital city of Ulaanbaatar earned our investors an average return of 24% and 300% capital growth over four years.

Since then, we’ve watched as the ‘Asian Wolf’ that is Mongolia has captured international attention with its economic progress. By 2011, this largely nomadic nation had reached the position of the world’s fastest growing economy, achieving a growth rate of 17.5%.

Investment opportunities

At Property Frontiers our research team monitors a range of complex economic indicators to ensure that our investors can benefit from the world’s most dynamic international opportunities. For Mongolia, everything is moving in the right direction. The country is predicted to achieve economic growth of 14% this year, according to the International Monetary Fund, and Citygroup analysts have dubbed it a Global Growth Generator, which indicates that between now and 2050, Mongolia is one of the most promising growth prospects on the planet.

A welcoming environment

One of the most significant things to happen in Mongolia in recent years has been the passing of the new investment law this month. The law overturns two previous pieces of legislation and makes the financial environment within Mongolia much more attractive to foreign investors.

In a nutshell, the new law means that the playing field has been levelled for domestic and foreign investors. The change is tipped to boost investor confidence worldwide. One of the most attractive features of the new investment law is that it sets stable tax periods based on the investment amount and the location within the country, with rates set for between 5 and 22.5 years. The rules are applied based on the day a contract is signed and are not subject to the changing legal environment during the lifetime of the deal.

What it means

The change in legislation means that we are thrilled to be offering our clients our latest investment opportunity in Mongolia. The Village @ Nukht is a luxury shopping and leisure centre with construction due for completion by the end of Q4 2013. Freehold retail units with expected rental returns of 14.8% NET, and with an assured yield of 12% for 24 months, provide our clients with the chance to be part of this progressive economy. Investment is from just USD 254,000, with anticipated capital appreciation of up to 20% per annum.

Unusually for an Asian country, the purchase process is simple and straight forward, making investment easy. All investors receive the officially registered floating freehold title to their units, which is another rarity for Asian investment. With Mongolia taking such an enlightened stance to foreign investment, I’m excited to know that The Village @ Nukht is part of Property Frontiers’ leading international portfolio.

If you would like more information on developments in Mongolia, feel free to contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.


Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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