Khan-Uul

This district — including the Zaisan, Yarmag, and Nukht areas — is attracting more and more people to its fresh air and the rapid development of luxury residential housing. The many retail and dining options, as well as cultural sights, also add to the district’s popularity. The Zaisan area in particular has experienced a lot of development in a short period of time, with almost all open areas having been replaced by large housing projects. The Yarmag area is next in line, with many projects planned or being constructed currently. Yarmag is home to Viva City, a precinct that is gaining recognition as a middle class residential and retail destination. As a popular retreat destination for Ulaanbaatar’s elite, the Nukht Valley is also transforming itself into a satellite luxury residential area. 

Market Knowledge

The region will likely experience some of the strongest appreciation outside of the city centre in coming years. The newly paved airport road and central heating system are both expected to add to the expansion of the area. Prices should continue to appreciate, albeit at a lower pace than those in the city centre.

Sukhbaatar

This district is home to the most famous 40K and 50K apartments from the Soviet Era, as well as Chinggis Khaan Square (formerly Sukhbaatar Square), Parliament House, the Shangri-La Hotel, the National Children’s Park, and the Central Business District including the city’s premier A Grade office buildings such as Central Tower, Blue Sky Tower, and ICC Tower. Seoul Street is best known for its entertainment area, which is home to many popular restaurants and bars as well as several luxury residences in the Embassy Area (including The Olympic Residence, Regency Residence, Embassy Residence, and Star Apartments). These make the district a popular destination for both locals and expats.

Market Knowledge

Rapidly increasing demand for residential and commercial space combined with constrained supply means that rental and sale prices in the Sukhbaatar district will continue to climb steadily in years to come. However, it is likely that office rents in the area will stagnate as a large number of Grade A office towers came online in a short period of time. The residential market in this area is the one of the most sought after in Ulaanbaatar, and the constrained supply in this region (due to the limited availability of land) makes it one of the best performing districts in the city.

Chingeltei

Neighboring the Sukhbaatar District, the Chingeltei District is also home to the Soviet Era 40K and 50K apartments. These apartments are some of the most desirable in the city, and command top prices. The Chingeltei District has everything: shopping, food, and nightlife. A lively restaurant scene, the proximity of several international stores, and a variety of housing options make the area a favourite among locals and expats. The State Department Store and the Tengis Movie Theatre are the most popular destinations in the district.

Market Knowledge

Demand for residential space in the Chingeltei District is high due to its central location, and constrained supply. It is predicted that demand will continue to stay strong. The redevelopment of ger areas in this region is expected to transform this district dramatically in the long term. 

Bayanzurkh

The district, also known as Sansar and the 13th district, is one of the largest in the city and has seen some of the biggest additions to the residential market in the past few years —almost twice as many as the Khan-Uul District. The National Park in Bayanzurkh is now officially the largest green park in the city, making it one of the most attractive residential areas for middle class residents. However, the southern part of the district is overshadowed by the pollution coming from the nearby ger districts. The ger redevelopment in this area is expected to transform this district in the long term.

Market Knowledge

The market conditions in this region are expected to slowly improve in the long term, but the poor quality of some of the buildings in this area may drag down the price of the newer, better quality developments in this region in the coming years, until redevelopment works are completed.

Bayangol

Although located centrally, this district has yet to be exposed to the levels of development that have transformed Sukhbaatar and Chingeltei. One of its biggest attractions, the Gandan Monastery, is over 200 years old and home to hundreds of monks. Bayangol is well known for its retail space. In the past, Mongolian brands dominated the area, but recently, international brands like United Colors of Benetton and Mango have set up shop. The area is also home to many other new additions including the Ramada Hotel, MaxMall, and Grand Plaza.

Market Knowledge

The newer additions in this district have been mostly low cost housing, although the Bayangol district is one of the largest by number of residents in Ulaanbaatar. The quality of most of the low-cost housing is poor, and the liquidity of these buildings in the short to medium term is expected to stay low. 

Songinokhairkhan

At 120,000 hectares, Songinokhairkhan is Ulaanbaatar’s second largest district by area. Situated to the north and west of the city towards the base of Songinokhairkhan Mountain, the area represents one of the key industrial districts in the city. It is currently home to around 300,000 people. Although no obvious catalyst has been identified, the generally positive demographic trends that have seen the district’s population expand over recent years are forecast to be sustained by Ulaanbaatar’s increased urbanization rate over the short to medium term.

Market Knowledge

Residential sales prices in Songinokhairkhan are still relatively low, with space currently selling for approximately $1,150 per square metre, making it the cheapest in Ulaanbaatar. Although this has grown from an exceptionally low base of $420 per square metre in 2005, this remains the lowest percentage increase of any district in the city, suggesting Mongolia’s economic prosperity has been slow to filter through to this border town.

View more from Mongolian Properties' 2016 Real Estate Guide here.