Prices have been steadily increasing over the last five years, and are set to do so for a few years more. We are currently at around $2000 per square meter for luxury apartments, up from $1500 last year. If we take the situation in Kazakhstan over the past few years as a model, we can estimate that within around 3 years, prices could be as high as $6000 per square meter. We can use Kazakhstan as a model as they are, like Mongolia, a resource-based economy, and have had to re-emerge since the collapse of the Soviet Union. There was a large, quick increase in wealth and prices in Kazakhstan once they began to extract resources - the same stage Mongolia is on the verge of at the moment. The crash Kazakhstan suffered due to the sub-prime crisis will not happen in Mongolia however, as we have low national debt and it is settled on favourable terms with Russia.
Prices for renting apartments have similarly increased, with the top end in 2004 at $1500 per month, and the top end in 2008 as high as $4500 per month. However, the range of apartments available has also increased, so there are nice spaces available for around $2000 per month, whereas the price range for decent apartments previously was smaller since there were fewer built.