Uruguay Housing / Real Estate
By Tom James / nubricks.com
Uruguay Investment Property – One to Watch
Investment property in Uruguay, one of Latin America’s smaller countries, is often overlooked by those drawn to the brighter lights of Argentina, Uruguay’s flamboyant neighbour across the River Plate. However, while Argentina’s economy has floundered and shows little sign of recovery in 2009, Uruguay offers a completely different story. 2008 was a poor year economically for many developed countries, but Latin America had several star performers. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), high achievers in 2008 GDP growth were Brazil, Ecuador and Panama, although Uruguay with its 11.5% increase outperformed the other 20 countries in the ECLAC listing. The 2001-2002 Argentinian crisis hit Uruguay hard and the country fell into recession, but the prudent monetary policy followed since then has meant Uruguay’s economy has boomed while Argentina’s has failed to take off. Uruguay’s secret was to devalue its currency, a move that led to a lower cost of living and an attractive environment for foreign investment....
For Sale in ... Uruguay
One of Uruguay’s most popular second-home destinations is Punta del Este, a resort area on a peninsula in southern Uruguay. Jason Mitchell, a director with Reporte Immobiliario, an Argentine real estate research firm, estimated that apartments in Punta del Este cost about $2,494 a square meter ($232 a square foot), though he said the market there has stagnated in recent months. The property market in Uruguay is relatively stable, according to Juan Federico Fischer, a partner with LVM Attorneys at Law, a firm that advises foreign investors. Recently, he has seen an increase in interest from American buyers who want an inexpensive place to live while riding out the economic downturn. Argentines make up most of the foreign buyers in Uruguayan real estate, Mr. Fischer said, followed by Americans and Canadians. Most European buyers are from Spain. He has also observed a recent increase in Australian investors. Many foreign buyers purchase property as an investment, hiring local property managers to rent out their homes until they retire and move to Uruguay full time.