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REAL ESTATE |
Buildings in Mongolia Investors can easily find office space and housing in Mongolia. Newspapers, word-of-mouth, and local consultants are the best ways to locate appropriate space quickly. Virtually all buildings in Mongolia were constructed using Soviet models and methods. As a result, little local housing, office or factory space fully meets western standards. Almost all buildings rely on the central heating and hot water system. In the early 90's Ulaanbaatar suffered periodic power, telephone, hot water and heating outages, especially during the peak demand season in the winter. However, the government has continuously improved services. Outages have become much less common. New construction projects dot the landscape of Ulaanbaatar. Many other buildings are receiving upgrades. Demand still outstrips supply. Due to shortages of capital and material, this sector is only operating between 10 and 40 percent of capacity. With the majority of the population under 25 years old, the need for residential units continues to grow. Further, the urban water and sewage systems require upgrading. Leasing Space The English newspapers in Mongolia are excellent sources on available housing and office space. Also FIFTA may be able to assist. Housing and office space is available for rent, generally as units within apartment buildings . Apartments are Soviet-style, with one to three rooms and up to two bedrooms. Office space rents for about $10-$30 per square meter per month and is available through almost every state agency and through private connections. Telephone, cellular, fax, and Internet services are readily available. Although the constitution prohibits foreign ownership of land, the Foreign Investment Law makes provision for long-term leases. Both foreigners and Mongolians may own structures such as apartments, factories, houses, etc. According to the Privatization Law of Mongolia "Foreign citizens and stateless persons can own state property exclusively during its privatization on the basis of payment." A Land Tenure Law provides tenure rights for up to 60 years, with the possibility for another 40-year extension. Other Alternatives Alternatives include leasing land and building one's
own housing or office space, leasing
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