Properties Deemed "Zero Value" in Mongolia

In Mongolia's ger areas, families often own their land, but not the value of their homes. Without structural safety, energy efficiency, or infrastructure connectivity, these houses are considered "zero value" by banks.

No certificate of immovable property means no collateral for loans, blocking economic mobility and wealth building for thousands of households. That's why finance reform is just as critical as engineering solutions.

Working alongside the The World Bank and the Ministry of Urban Development, Construction and Housing, our team outlined key financing pathways to support "missing middle" housing solutions.

Targeted Financial Products for Different Needs

• Basic roof insulation and seismic retrofits (2 million MNT = 588 USD) accessible to even lower-income households through microloans from non-banking financial institutions
• Full home retrofits with infrastructure connection (12 million MNT = 3,528 USD) for middle-income households through expanded microloan programs
• New green and resilient housing construction (63 million MNT = 18,522 USD) for households in income deciles 5 and above through reformed mortgage products
• Refinements to Mongolia's Housing Finance Program (HFP) that redirect subsidies toward safer, energy-efficient ger housing, at half the fiscal cost of subsidizing high-rise apartments

Community Readiness and Implementation

Our focus group discussions in Darkhan and Erdenet revealed strong support for these initiatives. Over 90% of surveyed households preferred improving their current homes rather than relocating, and most expressed willingness to dedicate up to 30% of their income to housing improvements.

Success requires efforts from both the supply and demand sides. For supply, it’s crucial to establish training programs for households and contractors focused on resilient construction methods, in addition to offering pre-designed housing models and certification via the BestGER rating system. On the demand side, it's important to create customized financial products that address the specific needs of households in ger areas, including options for those with informal earnings.

These concepts are not just theoretical. By tackling physical housing requirements and financial obstacles simultaneously, we can unleash the hidden wealth potential in ger areas, rehabilitating Mongolia's housing scene into a more inclusive, sustainable, and economically dynamic setting.

View the full Mongolia Report here: https://miy.to/mynmr