One of the most significant events to happen in Mongolia in recent years is today’s introduction of the new investment law by the Mongolian parliament. As of Friday 1st November 2013, the new law will overturn two previous pieces of legislation, making 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 with the change tipped to boost investor confidence worldwide.

• New law on investment in Mongolia takes effect today, 1st November 2013
• Playing field levelled for domestic and foreign investors
• International investor confidence should return to “Asian Wolf” economy

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.

Ray Withers, CEO of award-winning property investment experts, Property Frontiers, with a proven track record in Mongolia explains,

“Previously there have been concerns over how foreign investors are treated compared to domestic investors. Every 4 years, with a change of government, there were worries that the rules might be altered to the disadvantage of foreign investors but now, under this new piece of much-welcomed legislation, foreign investors know where they stand today and into the future.”

Indeed, as the managing director of Mongolian Investment Banking Group LLC, said “Tax stabilization measures and provisions that will help to prevent future changes to the legislation should provide investors with the confidence that they need to return to the market.”

And this investor confidence is set to spread to the Mongolian property sector. Previous foreign investors who purchased residential property in the capital Ulaanbaatar through Property Frontiers have seen average returns of 24% and up to 300% capital growth over the last 4 years with many keen to reinvest into the country’s lucrative commercial sector.

With the Mongolian capital witnessing real estate prices rise eightfold since 2001 and commercial rentals predicted to triple over the next 5 years as more international companies enter the market, now is the time to cash in on commercial property in Ulaanbaatar.

Property Frontiers’ latest offering in the Mongolian capital, The Village @ Nukht, presents a superb opportunity to purchase a luxury retail unit, on a freehold basis (rarely seen in Asia) from just USD 254,000.

A luxury shopping and leisure centre located in Ulaanbaatar’s “Billionaire Valley”, construction at The Village @ Nukht is well underway with completion due by the end of Q4 2013. Offering expected rental returns of 14.8% NET, an assured yield of 12% for 24 months and up to 20% capital appreciation per annum, this is one opportunity not to be missed.

For more information on The Village @ Nukht contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.

Mongolia shot to global attention in 2011, when Citigroup analysts flagged it as a Global Growth Generator, earmarking it as one of the most promising growth prospects for 2010-2050. At the same time, the World Bank upgraded this emerging market from a low to a middle income country, while Mongolia led the world to become the fastest growing economy that year, with a growth rate of 17.5%.

Things have certainly moved fast for Mongolia. Mineral deposits estimated to be worth USD 1.4 trillion have led to rapid economic expansion, with growth for 2013 predicted to reach 14% according to the International Monetary Fund. In just three years, from 2008 to 2011, the Mongolian Stock Exchange quadrupled in size. A year later, the International Finance Corporation’s Doing Business report saw Mongolia move up from rank 88 in 2011 to position 76 in 2012 – an indication that the ease with which business could be done in Mongolia improved significantly in just 12 months.

The move from a communist regime to a more market-led existence has coincided with the economic impact of Mongolia’s mineral deposits. Real income rose 20% between 2008 and 2011, while the number of retailers in the capital of Ulaanbaatar increased by an incredible 34% in the two years to 2010.

Demand for western brands and western-style retail experiences has experienced a massive surge in recent years. Between 2003 and 2011, annual per capita spending on clothing went up by 500% and the result has been a rising need for new retail developments that meet the demands of Mongolia’s increasingly cash-rich population.

Nowhere is this more in evidence that in the capital, Ulaanbaatar. Back in 2007, Property Frontiers’ pioneering residential developments in Ulaanbaatar earned investors an average return of 24% and 300% capital growth over four years, capitalising on the city’s residential real estate price rises, which have increased eightfold since 2001.

Ray Withers, CEO of Property Frontiers, comments,

“As one of the first property agents in the world to offer investment opportunities in Mongolia, this is one emerging market which lies close to our hearts. Home to some of our most successful projects, both in terms of capital growth and rental income, Ulaanbaatar still presents a wealth of opportunity for investors keen to cash in on the thriving commercial property market.”

Indeed as is commonly seen in the west, commercial rental prices are now following suit from residential highs, having moved upwards from a range of USD 15-35 psm in 2009, to USD 35-70 psm this year. That’s why Property Frontiers is once more working with the same award-winning developer in order to launch a brand new asset class in Ulaanbaatar.

In the city’s upmarket ‘Billionaire Valley’ area, The Village @ Nukht is a luxury, western-style shopping and leisure centre, already under construction and on track for completion by the end of Q4 2013.

The prime one hectare site will include a number of freehold high end retail units. Strong yields with expected rental returns of 14.8% NET (with an assured yield of 12% for 24 months) and anticipated capital appreciation of up to 20% per annum, are attracting keen interest from the global investment community.

With investment from USD 254,000, retail opportunities at The Village @ Nukht are expected to sell fast, which is far from surprising given the explosive growth of this dynamic country. While the wider world watches with interest, smart investors are ensuring that they are part of Mongolia’s fascinating and rapidly evolving history.

For more information about this high end retail investment in Mongolia, contact Property Frontiers today on +44 1865 202 700 or visit www.propertyfrontiers.com.