Position Paper on Mongolia's Real Estate Brokerage Industry
The real estate brokerage industry is relatively new to Mongolia but has grown rapidly. The value of the Real Estate market is projected to reach US$36.07bn in 2023. Residential Real Estate dominates the market with a projected market volume of US$26.45bn in 2023. The value is expected to show an annual growth rate (CAGR 2023-2028) of 10.38%, resulting in a market volume of US$59.09bn by 20281. Eighty-eight companies, or 31 percent of all licensees registered with the Financial Regulatory Commission (FRC), are international franchisees. Sixty-six firms have RE/MAX franchise licenses, 21 companies hold Century 21 licenses, and one company has a Keller Williams franchise license. Between 2020-2022, AmCham Mongolia organized three sector-based discussions with the FRC, making a significant contribution to the establishment of the United Roof Association of Real Estate Business Owners, a very important event for the development of the country’s real estate sector of the country. The organization was established in 2021 to build the capacities of the sector’s professionals. The FRC is working on a bill to regulate real estate brokerage activities and plans to make it ready for public discussion in 2023. AmCham Mongolia will cooperate with the FRC to organize a public discussion on the bill. Companies and individuals operating in the real estate brokerage sector have been involved in money laundering and financing terrorism, which put Mongolia on the Financial Action Task Force (FATF) list of countries with strategic deficiencies, the "grey list". As risk remains, this policy document includes AmCham Mongolia’s recommendations for the further development of the real estate brokerage sector.