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Free And Easy In Resource Rich Mongolia
January 23, 2009Article by Ray Withers
Life is free and easy in one of Asia’s top three democracies – Mongolia. Luckily, the livestock don’t vote because they outnumber the 2.5 million people by 17 to 1. This vast land rich with mineral resources and famous for fascinating fossil finds is opening up to the outside world after years of playing the underdog to Russia and China. This baby democracy is taking its first teetering steps on to the global stage as one of the world’s biggest exporters of copper and coal to resource starving China. With wide open spaces untouched by modern fripperies like roads, railways and telephone lines, more and more Westerners are going on eco-holidays on Mongolia’s rolling plains. Mongolia is up-and-coming with a young, educated population. The economy grows at a healthy 7.5% per year thanks to the vast reserves of natural resources.
Foreign investment encouraged by democracy has attracted some big mining players to the country and this is pushing up the prices of Mongolian property. The Olympic Residence, an iconic development in the middle of the capital that dominates the skyline is at the forefront of how Mongolia real estate will proceed.
Neighbouring the embassy district and next to the under construction Hilton hotel, The Olympic will be the residence of choice for diplomats and executives looking for quality accommodation.
Standing at 18 storeys, the Olympic Residence, will be Ulaan Bataar’s tallest building. Inside will be 100 apartments over a shopping centre, restaurants and a food court. Based on the current rental rates the apartments should generate a net yield of at least 10% per year. The apartments come with various layouts and with one to five bedrooms. including penthouses priced from £115,000 to £320,000. Quality, western style housing is short in Mongolia Ulaan Bataar property is mainly concrete Russian style apartment blocks with a Sixties’ vintage and the locals can’t afford to buy or develop because wages are low.