Sign in Subscribe
Housing

Mongolia Construction Market to Grow by 5.2 Percent in 2025, Supported by Public and Private Sector Investments

Strategic Insights

— 1 min read

The construction industry in Mongolia is expected to grow by 5.2 percent in real terms in 2025, following a growth of 10.4 percent in 2024. This growth is attributed to public and private sector investments in energy, transport network, and residential construction projects. According to the Mongolian National Statistics Office (NSO), the construction value-add grew by 12.5 percent YoY in Q4 2024, preceded by a YoY decline of 3.5 percent in Q3, and growth of 16.8 percent in Q2 2024. Ulaanbaatar City announced plans to build new roads at 10 locations and upgrade roads at 41 locations, which will further boost growth in the construction sector. Rising foreign direct investment (FDI) is also expected to contribute to the growth of the construction industry, with FDI increasing by 13.3 percent in 2024 to MNT1.4 trillion ($4 billion).

Key Takeaways:

  • The construction industry in Mongolia is expected to grow by 5.2 percent in real terms in 2025, supported by public and private sector investments.
  • The Mongolian National Statistics Office (NSO) reported a construction value-add growth of 12.5 percent YoY in Q4 2024.
  • Ulaanbaatar City announced plans to build new roads at 10 locations and upgrade roads at 41 locations, boosting growth in the construction sector.
  • Foreign direct investment (FDI) in Mongolia increased by 13.3 percent in 2024 to MNT1.4 trillion ($4 billion).
  • The analyst expects the Mongolian construction industry to record annual average growth of 4.4 percent between 2026 and 2029, supported by investment in transportation, electricity, and mining sectors.

Statistics:

  • The construction industry in Mongolia is expected to grow by 5.2 percent in real terms in 2025.
  • The construction value-add grew by 12.5 percent YoY in Q4 2024.
  • Foreign direct investment (FDI) in Mongolia increased by 13.3 percent in 2024 to MNT1.4 trillion ($4 billion).
  • The Mongolian construction industry is expected to record annual average growth of 4.4 percent between 2026 and 2029.

Sources:

  • "Mongolia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report by ResearchAndMarkets.com.
  • Mongolian National Statistics Office (NSO).
  • Ulaanbaatar City.
  • ResearchAndMarkets.com.

Read more