According to the report on the construction industry of Mongolia for 2025, a real production growth of 9.5% is expected. This growth will be supported by an increase in producer price indices in the energy, transport, and housing sectors, according to forecasts until 2029. As reported by MiddleAsianNews, this will create positive conditions for further development.
The forecasts for the construction industry of Mongolia look promising, primarily due to investments from both the public and private sectors in areas such as energy, transport, and housing construction. The increase in foreign direct investment indicates growing investor confidence, which in turn contributes to infrastructure development and expansion opportunities across various sectors.
A report on the state, trends, and forecasts of the construction market in Mongolia has been added to the ResearchAndMarkets catalog, covering sectors such as commercial, industrial, infrastructure, energy, utilities, institutional, and residential, with analysis up to 2029 (the second half of 2025).
By 2025, the construction sector of Mongolia is expected to grow by 9.5% in real terms, thanks to active investments in the development of energy, transport infrastructure, and housing construction.
Based on data from the National Statistical Office of Mongolia (NSO), the added value in construction in the second quarter of 2025 increased by 34.5% compared to the previous year, following a decline of 0.8% in the first quarter of 2025 and a growth of 16.8% in the fourth quarter of 2024. It is expected that the growth of foreign direct investment will positively impact the development of the construction industry.
According to the NSO, the construction sector attracted 7.7% more foreign direct investment in the second quarter of 2025 compared to the same period last year, following a significant decline of 43.1% in the first quarter of 2025 and 55.6% in the fourth quarter of 2024. This reflects growing investor confidence in the energy sector and the country's infrastructure projects. In April 2025, construction began on the Bagakhangai—Khoshig valley railway line.
It is projected that from 2026 to 2029, the construction industry of Mongolia will grow at an average rate of 4.3%, made possible by investments in the development of the transport, energy, and infrastructure sectors.
In September 2025, the government presented a draft law on the state budget for 2026 to the parliament. This draft includes total expenditures of ₮32.98 trillion ($9.6 billion) to ensure macroeconomic and fiscal stability, increase household incomes, and improve the quality of social services.
The 2026 budget draft includes funding for 579 projects and programs, among which 149 are new projects planned for implementation in 2026, as well as 430 ongoing projects from previous years.
As part of the 2026 budget, ₮3.9 trillion ($1.1 billion) is allocated for investment in the energy sector. The government is also aiming for 100% education coverage for all citizens.
