After much criticism, debate and argument, the new Urban Redevelopment Law has recently been voted on and accepted by the Government of Mongolia. This new law can have far reaching impacts in the urban development in the city, in particular as it sets out the principles by which buildings can be demolished and rebuilt.
Due to the importance of this law in the redevelopment of the ger districts of Ulaanbaatar as well as for the older building stock of the city, M.A.D. Investment Solutions and Audier & Partners have decided to publish a detailed analysis of the law, its strong points and its weaker elements, including the changes that have taken place between the draft law and the version that was approved. This in an effort to better inform the community of stakeholders which are concerned by the future urban development of Ulaanbaatar.
Through a lengthy process of community participation and lobbying, many uncertainties in the draft law have been resolved with some controversial elements removed. Nevertheless, there are still a number of considerable issues with the law as it was passed. Primarily with respect to the exact process of implementing and monitoring the 80% acceptance rate. This links directly to an issue where there remains considerable uncertainty surrounding the enforceability mechanisms that relate to the landowners participation rights and their choice of future developments.
The most basic issue that remains to be resolved for the law to be successfully implemented is the setting up of a transparent, fair and efficient valuation system. This is something which we hope will be improved over the coming few years.
The present analysis goes in-depth in the various controversial articles of the law and presents solutions to how those articles could be improved through amendments and policy solutions.
We hope that stakeholders in the Ulaanbaatar property sector may find this useful. We remain at the disposal of anyone who would like to further discuss this analysis.
Copyright of the document remains with M.A.D. Investment Solutions and Audier & Partners who hold the exclusive distribution and reproduction rights.
About M.A.D. Investment Solutions
The M.A.D. Investment Solutions team is all about making sense of the changes currently taking place in Mongolia as it transitions from a centrally planned economy to a fully fledged market economy in the grips of a mining boom.
M.A.D. Investment Solutions is a boutique real estate investment and consulting firm based and operating in Ulaanbaatar. We focus on added-value investments on all types of Real Estate asset classes both within Ulaanbaatar as well as in Mongolia’s high-growth cities. We provide tailor-made investment solutions for our investors to make the most of this dynamic market.
M.A.D. Investment Solutions provides a range of turn-key real estate services dedicated to accompanying our investors through each step of the investment process. This includes, research, due diligence, valuations, transaction assistance, interior design, renovation, property management and tenancy management. Furthermore, we are one of the only companies on the market to have a dedicated professional research team that provides up-to-date market critical information and analysis to all our clients.
M.A.D. was established in 2009 as a full service real estate research and investment firm to cater to institutional investors investing in a range of real estate assets throughout Mongolia. Today M.A.D. has 42 employees divided into 4 teams (Research, Real Estate, Interior Design, Renovation) and is the only firm accredited by the Royal Institution of Chartered Surveyors in Mongolia. M.A.D. is employed as expert consultants on donor funded projects such as the ADB, World Bank or The Asia Foundation. M.A.D. furthermore maintains its own portfolio of properties in the heart of Ulaanbaatar used as serviced apartments. Please visit the range of websites owned by M.A.D. to gather a better understanding of the range of operations carried out by the firm (websites listed on last page of this document).
About Audier & Partners
Audier & Partners is an international law firm founded by Nicolas Audier, member of the Paris bar, with offices in Ho Chi Minh City, Hanoi, Ulan Bator and Yangon.
Audier & Partners is present in Ulan Bator since 2012 where it advises in particular foreign companies, within a broad range of industries, for their corporate transactions in Mongolia.SOURCE: M.A.D.