The Primary, Open, Simultaneous and Mandatory (PASO) elections held two weeks ago in Argentina caused a great question mark in the economy of the neighboring country, for which reason the consultations of Argentine citizens in search of the uruguayan stability grew, although intervened by great uncertainty, even for finalize operations.
With the results of the elections in the neighboring country, came the economic consequences caused by a devaluation of the Argentine currency. With this, scope.com spoke with him CEO from the real estate consultancy Moebius, Gonzalo Martinez Vargasto see how the Argentines who want to protect their capital behaved in the Uruguay in the face of such an uncertain economic future.
According to Martinez Vargas, “it is common currency” that every time there is a major economic change in Argentina – as were the elections held on August 13 in the neighboring country where the winner of the day was the far-right javier milei – “there is always a run of queries in Uruguay”. The CEO of Moebius assured that it is a flow that “occurs from time to time” and that it has great intensity the first week. “It’s not a boom, but nothing very close,” explained Martinez Vargas.
However, this last phenomenon had a different behavior: “When talking with other colleagues, we came to the conclusion that, although there was a good number of inquiries, they were not people who were determined to buy”, explained Martinez Vargas. According to the CEO of Mobius, at other times, between 10 and 15% of inquiries were people determined to invest in the short term
On this occasion, the consultations had the objective of feeling the market. “They wanted to see how the market was, how the return was coming, because what really happened in Argentina was a huge question mark and nobody is clear about what is going to happen”, estimated the CEO regarding the victory of Javier Milei, added to the fact that only 68.3% of the Argentine electorate voted.
Why do Argentines choose Uruguay for real estate?
Martinez Vargas assured that the cost effectiveness regarding rentals It remains the samewhere it is around 6%, and that could even yield up to 7% – if it is a promoted home where there can be up to 1% tax exemption – in one-bedroom properties with a garage at values up to $135,000.
The CEO of Moebius assured that Argentines continue to invest in Uruguay because, on the one hand, the owners charge in dollars since, even though the rents are charged in Uruguayan pesos, it is easy to convert and it is a way to be able to grab “fresh dollars” and constants.
On the other hand, the tranquility and stability of the Uruguay it is also an important factor for Argentine investors. “Twenty years ago Uruguay it has single-digit inflation,” explained Martinez Vargas. Added to this is the legal framework where they are provided tax exemptions for being an owner in the country, as well as the Rental Law – called “Free Contracting” – which allows for a free agreement between the parties.
Martinez Vargas added that the real estate in Uruguay it’s a solid market where delinquency is minimal, insurers guarantee 100% of the lease and expenses, where the builder’s warranties They are for 10 years and the properties are new and have a very good location, which makes them very attractive.
Source: Ambito
