Only 7.5 percent of Metropolitan citizens have their own land, despite the fact that the land owning campaign began in 2003. The large number of families in ger districts and summer camp houses may find that they do not hold the actual title to their land. Many do not understand the difference between occupying land and owning it. Only a properly registered owner can legally sell or rent the land. 

That only 7.5 percent of Ulaanbaatar residents own land does not mean that the rest do not wish to do so. The real answer would be that good land to own is hard to find here. UB City has more than half of the nation’s population, but few wish to own land in distant regions where infrastructure facilities are poor or nonexistent.

It is also not easy to get the license to own land. Officials say citizens do not follow proper legal procedures. Citizens, on the other hand, say it is never clear where they have to go and what they have to get the license. There are allegations that one either has to know the right people or pay bribes.

Hernando de Soto’s team studied the situation here for three weeks and found that a Mongolian citizen has to pass five stages before owning land, during which he has to collect documents, prepare them and submit them at 47 places. The usual time taken is 171 days and the total expenses are USD714. Considering that the average annual salary here is USD960, there should be no surprise that few care or dare to go for land ownership.

Officials deny that so much money is needed and also find other mistakes in the study. They say the team included intra-family negotiations in the 47 people they listed.  However, a drastic revision in the process is likely soon, with USD17.2 million to be spent on a Property Rights Project. Procedures will be simplified, land will be demarcated more clearly, and measures put in place to help people own land. The project will continue until 2015.