Ulaanbaatar, October 30, 2024 /MONTSAME/. “The Future of Mongolia’s Housing -2024” international forum took place in Ulaanbaatar on October 28, 2024. The forum was jointly organized by the Ministry of Urban Planning, Construction and Housing (MUPCH), the World Bank, and the Ministry of Family, Labor, and Social Protection, and the participants discussed multi-faceted housing solutions suitable for Mongolia, the replanning of Ger districts, the plan and design of green and disaster-resistant and affordable housing, and the sustainable, accessible and effective housing financing.

Mortgage loan sources will be increased to MNT 1.2 trillion next year, stated Minister of Urban Planning, Construction, and Housing Batsuuri Jamba in his speech at the forum. The mortgage loan sources will be added gradually and 60 thousand households will be provided with loans, of which more than 50 percent is planned to be granted to households in rural areas. Apartments for 150 thousand households are anticipated to be commissioned next four years, according to the Minister. “We intend to create a legal environment, that enables households to receive soft loans up to MNT 30 million, if they make their houses insulated or fully solve the infrastructure. Jointly with the Mongolian Green Finance Corporation, we plan to raise funds for it from international financial sources,” noted Minister Batsuuri.

The forum discussion focused on challenges to address housing, possible solutions, and international best practices. President of the Mongolian National Construction Association  Bayarsaikhan emphasized, "Everyone knows that corruption related to land is the biggest factor that increases the price of construction. It takes 3-5 months to get permission to start construction and fire permission. First of all, it is necessary to sort out the basic problems and carry out reforms.”

Head of the Housing Department of the Ministry of Urban Planning, Construction and Housing E. Batbold noted, "Due to the weather conditions in our country, the construction period is short. Construction permitting takes time. Therefore, we are taking measures, including digitalizing construction permit issuance and promoting insurance-based businesses. In countries, insurance companies play a crucial oversight role. We are developing an integrated electronic system that will reduce human intervention in granting permits related to the construction process."

A package of laws related to the construction industry, which includes draft laws on construction, urban development, and national housing is in the process of development and the draft laws are expected to be approved during the autumn session of the State Great Khural. The draft reflects that around MNT 500-600 billion would be allocated annually as additional mortgage sources through the National Wealth Fund. About MNT 600 billion is annually generated from mortgage loan repayments.