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Investment Property in Mineral Rich Mongolia
June 27, 2008Article by Ray Withers
Following the fast sell out of their two previous Mongolian property developments, Property Frontiers release a limited number of units at a new high end residential project in Ulaanbaatar.
The Olympic Residence has been specifically tailored to meet soaring demand from business professionals and offers luxurious apartments at the heart of the capital. At 18 stories it will be the tallest building in the city, will offer an exceptionally high standard of living and net yields in excess of 10%.
With vast mineral deposits including gold, tin, coke, coal and the largest underdeveloped copper-gold source in the world, Mongolia is commodity rich. It is predicted that the country may also harbour deposits of uranium, gold, silver, lead and oil meaning the mining industry is a booming one, contributing to 22% of the country’s gross GDP. With over 200 foreign companies employing almost 40,000 people, the capital is witnessing a severe supply squeeze on existing accommodation with an estimated 4000 unit annual deficit.
According to Sourcing Manager at Property Frontiers, James Black, this demand is also fuelled by the growing domestic market as residents currently housed in traditional gers (50% of the population) look to move to more permanent accommodation. He concludes that ‘both local and foreign demand equate to excellent potential for strong capital growth and high rental returns on investment property‘. Conservative estimates predict that net yields will exceed 10% whilst price appreciation levels are expected to top 30%.
A range of apartments of varying sizes are available in the Olympic Residence from ~ £118,000 and enjoy valet parking, high speed internet access, private terraces, outdoor seating areas, 24 hour security, a luxury 2 floor shopping galleria, 2 restaurants and a food court.