According to the report on the construction sector of Mongolia, a 9.5% increase in production volumes is projected in real terms by 2025. This is linked to the rise in producer price indices in areas such as energy, transport, and housing construction, and covers forecasts up to 2029. The data is presented by MiddleAsianNews.
Forecasts indicate that the construction sector of Mongolia will develop due to public-private investments in key areas such as energy, transport infrastructure, and housing. The increase in foreign direct investment indicates growing confidence from investors, while large projects and government spending contribute to the improvement of infrastructure and expand opportunities for all sectors.
A report titled "Size, Trends, and Forecasts of the Construction Market in Mongolia by Sectors — Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional, and Residential Market: Analysis up to 2029 (Second Half of 2025)" has been added to the ResearchAndMarkets catalog.
By 2025, the construction sector of Mongolia is expected to grow by 9.5% in real terms. This will be possible due to investments from both the public and private sectors in the development of energy, transport networks, and housing construction.
Based on data from the National Statistical Office of Mongolia (NSO), the value added in construction increased by 34.5% compared to the same period last year in the second quarter of 2025, following a decline of 0.8% in the first quarter and a growth of 16.8% in the fourth quarter of 2024. It is also expected that the growth of foreign direct investment (FDI) will positively impact the development of the construction sector.
According to the NSO, the construction sector received 7.7% more foreign direct investment in the second quarter of 2025 year-on-year, which was a result of a decrease of 43.1% in the first quarter and 55.6% in the fourth quarter of 2024. This reflects the growing confidence of investors in the energy sector and infrastructure development. In April 2025, the construction of the Bagakhangai—Khoshig Valley railway line began.
It is projected that from 2026 to 2029, the construction sector of Mongolia will demonstrate an average annual growth of 4.3%, driven by increased investments in the transport, energy, and infrastructure sectors.
In September 2025, the government of Mongolia presented the budget draft for 2026 to the parliament. This budget plans total expenditures of ₮32.98 trillion ($9.6 billion), aimed at ensuring macroeconomic and fiscal stability, increasing citizens' incomes, and improving the quality of social services.
The 2026 budget draft includes funding for 579 projects and programs, among which 149 are new projects that will start in 2026, as well as 430 ongoing from the previous year.
As part of the 2026 budget, the government also planned investments of ₮3.9 trillion ($1.1 billion) in the energy sector and aims to achieve 100% education coverage across the country.
