Due to shortages of capital and material, this sector is only operating between 10 and 40 percent of capacity. With the majority of the population under 25 years old, the need for residential units will continue to grow. Further, the urban water and sewage systems need to be upgraded. Housing and office space is available for rent, generally as units within apartment buildings. Apartments are Soviet-style, with one to three rooms and up to two bedrooms.
Telephone service is available and fax machines are common.
Mongolia has three Internet providers. Although the constitution prohibits foreign ownership of land, the Foreign Investment Law makes provisions for long-term leases, for both Mongolians and foreigners. A Land Tenure Law provides tenure rights for up to 60 years, with the possibility for another 40 year extension.