If something characterized the Uruguayan real estate market, it was its connection, like an efficient communicating vessel, with the vertigo of its Argentine counterpart. Not only because the bulk of those who choose to invest in properties there are Argentines who have the experience of the country as a summer oasis.. The trend is deeper and had an unexpected turn for three national reasons: the agricultural boom since 2003, the pandemic and a third, if not, imported from the successive Argentine crises.
Changes. The Uruguayan demographic is that of an “aging” population, so much so that for 40 years the birth rate has been falling abruptly to the point that in this decade each year there were 20% more deaths than births. However, the turning point occurred in the last census (2023) with a growth of 1.8% of the total than in the previous one (2011), but the result of a new migratory flow coming from three countries with a common thread: its political and economic crises. As in the rest of the region, Venezuela contributed the largest group of economic exiles (27%) but Argentines constituted the second group (22%) and the Cubans the third (20%). That is, two thirds of immigration to a country characterized by expelling young people, constituted a labor, investment and productive contribution.
Besides, Since 2003, Uruguayan soybean production has increased 15 times and this was felt in the growth of its agricultural income, which generated greater capitalization of the sector, but also a need to place these surpluses in goods with a secure long-term income. Real estate was chosen for this.
Finally, the pandemic revalued contact with a natural environment and opened the way to remote work, so the coastal areas of Maldonado peaked in preferences for a frequent place of residence. The last census showed that more than 10% of the active population of the capital and almost 6% of the department of Maldonado use teleworking to carry out their tasks. This is a growing trend but one that had a strong impact on the Uruguayan real estate market: it increased the demand for properties both on the outskirts of Carrasco and of Punta Ballena (ideal for Montevideo residents) such as the coastal areas of La Brava, in the north of the Peninsula, up to Jose Ignacio.
The Argentine crisis did the rest: contrasting with the recurring instability, the Uruguayan market offers broad alternatives, dollarized profitability and greater predictability, water in the desert for the investor on this coast of the Río de la Plata and Uruguay. But not Juan Carlos Sorhobigarat is general director of Earthseaa renowned real estate firm from Esteña and also leads a civil association, Destination Punta del Este. ““The growth of social life in this area is notable: many bilingual schools and branches of universities appeared, all characteristic features of a habitual residence that combines rest with work,” Explain.
For the businessman, the type of investment that this current generates has to do with the purchasing power and income in the case of buying for own use or the opportunity if it is to rent. In the latter case, there is promotion legislation for housing that supplies the lower segment of the pyramid. But in the case of medium sectors, it is possible to think of a net profitability in dollars of 4% to 5% for medium-sized apartments in Montevideo, in addition to the almost certain capital gain from revaluation (20% in the last decade).
Cases. The Montevideo area also had additional demand due to the shift towards digital businesses that the capital was taking. There are businesses that have taken note of these and offer alternatives, such as the Globe Districta project of the investment group Skywalker SWI to develop in the emblematic Old City of Montevideo a masterplan for 26,000 square meters, through the acquisition, restoration and enhancement of six properties where, through a club of business and entrepreneurial members, they will have a place to work, interact and generate new ties in a ecosystem of category services. According to Nadina Rubinsteinthe Business Development Manager, The minimum ticket starts at US$170,000, eligible for Uruguayan tax residence and an estimated profitability of 16.45% per year with a projected capital gain of 1.6x.
In the Punta del Este area, there are several well-distinguished product strips, but what is most valued are buildings with few units that facilitate the establishment of a community of neighbors, “amenities” and a good location with pleasant views. The tickets in this case range from US$600,000 to almost US$1.5 million. As observed Hernan Pisarenkocommercial director of HA and partner of Bridge Argentina“people are coming more to Punta del Este out of season. For this reason, it seemed important to us to offer properties prepared for living all year round. Especially, we see that the most sought after are penthouses with wide views and apartments with more bedrooms”. With an investment of more than US$40 million and on a 13,000-meter plot of land, surrounded by forests and with views of the sea, a set of two 25,000-meter buildings built on the ground floor and four levels was designed.
Other types of properties are houses with more land in private neighborhoods and more remote condominiums, with shocking figures. For example, Selenza Villagea venture in Springs on Route 10 of five blocks on 20,000 meters of land, from Spanish developer Félix Abánades, plans to begin delivering units from 2026 based on a value of between US$4,000 and US$5,000 per square meter.
“The Uruguayan market has recently managed to attract an audience with high purchasing power and a desire to collaborate in the civic framework, but also with a younger generation of global businesses that choose an area that combines its natural environment with the cosmopolitan.”concludes Sorhobigarat. The trend and values seem to confirm the careful construction of a friendly ecosystem with a growing investor profile.
by Tristán Rodríguez Loredo
