Uruguay: Price History

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Uruguay - resisting the giants

Uruguay is enjoying a healthy real estate market. Particularly in Montevideo, the capital of Uruguay, and Punta del Este, high-end property prices are now back at their 2001 predevaluation level.

In Montevideo's Old Town, property prices are not very high. True to its name, it is quiet with very few new buildings. Old Town is filled with French-style properties. Aside from fully refurbished properties than can go as high as US$1,076 per square metre (sq. m.), prices range from US$538-860 per sq. m., according to Reynolds Propiedades figures at www.uruguay-real-estate.com.

Uruguay's economy is very much affected by its neighbors Brazil and Argentina. Being flanked between these much bigger nations, Uruguay cannot avoid the effects of Brazil and Argentina's economic performance.

While Uruguay mirrored Argentina's economic situation before, during, and after the 2001 crisis, including severe devaluation of Argentina's currency, Uruguay did better. The Uruguayan Peso did not devalue as much, and property prices recovered sooner than in Argentina.

High-end spots

The city of Montevideo is home to several high-end areas with expensive houses. Punta Carretas' ocean-view properties are at US$1,399-1,829 per sq. m. Like in Punta Carretas, ocean-view properties in Pocitos, another posh area in Montevideo, have a price range of US$1,399-1,614 per sq. m.

Carrasco is the most expensive part of Montevideo. Apartment prices start at US$2,152 per sq. m. This suburb has elegant big houses outside of its downtown area. Land lots sell for around US$300-400 per sq. m.

Punta del Este, more than a hundred kilometers from Montevideo, is one of the most expensive places in the region. It is a mixture of Palm Beach and the French Riviera, which converges in a mass of skyscrapers surrounded by beaches and promenades. "People like the fact that there is no poverty there, it is very civilized," says Maria Reynolds of Reynolds Propiedades. "You can run around in your Ferrari and no-one will mind. You can walk on the street in your jewelry and it will be safe."

Increasing demand is causing a construction boom in Punta del Este. New high-end properties go for US$2,000 per sq. m. and over.

Economic developments

Uruguayan economy greatly depends on farming, finance, and tourism industries, which are all performing well. Aside from these, Uruguay is trying to make its mark as an outsourcing option, taking advantage of the country's quality education and relatively cheaper wages.

Engineers in Uruguay take turns with engineers in India catering to the US market. This is only one of the ways Uruguay is making use of new and modern opportunities, just as how India's technology company, Tata Consultancy Services, outsourced engineers and programmers from Uruguay.

Building ties

Uruguay is part of the Latin American trade block Mercosur, to which Venezuela's application to join is still pending. The group, however, has been blamed for restrictions that do not benefit Uruguay,s businessmen and economy, not like in the 1990s when Mercosur was greatly significant and helpful. Before any of its members can enter into a free-trade agreement with the U.S., for example, the group should first give its approval.

In the recent tour of U.S. President George Bush in the region, notable is his visit in Uruguay, especially the warm treatment he received from the country. Uruguay also signed a Trade and Investment Framework Agreement with the United States. The move appears to be a message to the other Mercosur members, especially Brazil and Argentina, to take Uruguay more seriously.

Uruguay - more data and information

• Uruguayan house prices, rents, and letting income - real data!
• How expensive are houses in Uruguay, compared to the rest of Latin America?
• How much rent can be earned from Uruguayan property, compared to the rest of Latin America?

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