gogo logo
  • Монгол
  • Yolo
  • Maamuu
  • Politics
  • Economy
  • Society
  • Life
  • Interview
  • Culture
  • TRAVEL
  • Ulaanbaatar
  • Media OutReach
Helpful
Interview
  • - Interview
Interesting
Other
Монгол
Maamuu
Yolo
Main menu
Politics
Economy
Society
Life
Interview
Culture
TRAVEL
Ulaanbaatar
Media OutReach
Helpful
Interview
Interview
Interesting
Other menu
Монгол
Maamuu
Yolo
Contact us
Editorial ethics
Home
Search
Menu
  Facebook   Twitter
  Menu
Home
/ Society
Society

Demand for office areas overtops supply

  Facebook   Tweet
  Facebook  Tweet

Demand for office areas overtops supply

Whilst the housing market is the center of attention in the real estate, offices are showing promising forecast as the demand is exceeding supply according to Master Properties LLC.

Last year, a total of 215 projects with an available office space of 985,000 square meters was commissioned. About half of these are located in the downtown area in Sukhbaatar district. 72.9 percent of offices in this district are luxury-class; however, about 80 percent of private entities operating in the capital are the small and medium-sized enterprises with up to 20 workers. According to a survey, these entities prefer comfortable, low-cost offices that are not too far from downtown. In other words, there is a gap between the purchasing ability of customers and construction supply.

The trend in the office market is dependent on economic growth. Experts highlight that almost half of the demand for class-A offices are both, directly and indirectly, connected to the mining sector. Thus, the office market began to restore on the back of the upsurge of the mining sector since 2017.

The number of office seeking entities annually grow by 1,100 on average, which equals to 50,000- 60,000 in square meters. Plus, nearly 40 percent of entities renting office spaces are unsatisfied with the office environment. Considering these indicators, real estate agents forecast the demand for office to grow steadily in the upcoming years, suggesting an annual growth of over 8 percent.

As for ideal offices, a survey shows that private entities prioritize location the most, preferably near downtown. The priority list is followed up by price, class, and availability of parking areas. The preference drops significantly for office buildings that perform poorly on these areas, noted Tenkhleg  Zuuch LLC.

Whilst the housing market is the center of attention in the real estate, offices are showing promising forecast as the demand is exceeding supply according to Master Properties LLC.

Last year, a total of 215 projects with an available office space of 985,000 square meters was commissioned. About half of these are located in the downtown area in Sukhbaatar district. 72.9 percent of offices in this district are luxury-class; however, about 80 percent of private entities operating in the capital are the small and medium-sized enterprises with up to 20 workers. According to a survey, these entities prefer comfortable, low-cost offices that are not too far from downtown. In other words, there is a gap between the purchasing ability of customers and construction supply.

The trend in the office market is dependent on economic growth. Experts highlight that almost half of the demand for class-A offices are both, directly and indirectly, connected to the mining sector. Thus, the office market began to restore on the back of the upsurge of the mining sector since 2017.

The number of office seeking entities annually grow by 1,100 on average, which equals to 50,000- 60,000 in square meters. Plus, nearly 40 percent of entities renting office spaces are unsatisfied with the office environment. Considering these indicators, real estate agents forecast the demand for office to grow steadily in the upcoming years, suggesting an annual growth of over 8 percent.

As for ideal offices, a survey shows that private entities prioritize location the most, preferably near downtown. The priority list is followed up by price, class, and availability of parking areas. The preference drops significantly for office buildings that perform poorly on these areas, noted Tenkhleg  Zuuch LLC.

  Facebook   Tweet
Category
Society
Published
2019-02-15


gogo logo
Contact us Editorial ethics

© 2007 - 2025 Mongol Content LLC