Despite expectations of a significant change, Argentine investments have remained stable and even shown signs of growth
The choice of Javier Mileiknown for his liberal economic positions and proposals for change in the economic framework of Argentina, has generated a wave of speculation about the impact of his policy on various sectors, including real estate. However, despite expectations of significant change, Argentine investments in the Uruguayan real estate market have not only continued, but in many respects have remained stable and even shown signs of growth. This phenomenon, known as “the Milei effect” in the context of Uruguayan real estate, deserves detailed analysis.
Economic and political context
The assumption of Javier Milei has brought with it a series of promises of economic reforms that aim to liberalize the Argentine economy, reduce inflation and stimulate the growth. Such changes, although potentially beneficial in the long term, have generated uncertainty in the short term, leading investors to seek refuge or diversify their portfolios in more stable markets.
Uruguay as an investment destination
Uruguay It has historically stood out as an attractive market for Argentine investors due to its economic stability, transparent and favorable legal system. investment climate. The continuity of Argentine investments in the country, even after Milei took office, can be attributed to several factors:
- Stability and legal security: Uruguay offers a safe and predictable investment environment, qualities especially valued in times of political and economic change in Argentina.
- Geographic and cultural proximity: The proximity and cultural similarities make it easier for Argentine investors to explore and take advantage of opportunities in Uruguay.
- Risk diversification: Faced with economic uncertainty in Argentina, investing in Uruguay allows investors to diversify their risks, protecting their assets against fluctuations in the local market.
Current trends in the Uruguayan real estate market
Argentines have always acted in the real estate market of our country. Both in Punta del Este like in Montevideotheir investments not only as property buyers, but also as developers and builders.
We have already reported that in recent years, as a result of the housing law promotedmore than 6,500 Argentines have invested in real estate, mainly for rental purposes.
Last year, after the PASO elections, there was a stoppage in business completion. Consultations abounded, but few operational firms. Then, once Javier Milei was elected, the consultations and closing of operations began timidly and then more openly. And this January, Punta del Este was overwhelmed with Argentine tourists with high purchasing power, who once again began to boost real estate businesses.
Despite expectations of a cooling in foreign investments due to changes in Argentina, the Uruguayan real estate market has continued to receive a constant flow of Argentine capital. This is reflected in:
- Sustained demand for properties: Both for residence and for investment, especially in coastal areas and in the capital, Montevideo.
- Development of new projects: Investor confidence is manifested in the launch and continuation of ambitious real estate projects.
- Price stability: Although the market has experienced adjustments, prices have remained relatively stable, evidencing a healthy balance between supply and demand.
Future perspectives
The continuity of Argentine investments in Uruguay, even in the context of the “Milei Effect”, underlines the perception of the Uruguayan market as a safe haven and an attractive investment opportunity. While Argentina navigates its new economic course, the country is likely to continue benefiting from a sustained flow of Argentine capital, further strengthening its real estate market.
“The Milei Effect”, far from stopping Argentine investments in Uruguay, has reinforced its position as a privileged destination for real estate investment. The stability, security and opportunities offered by the Uruguayan market continue to attract Argentine investors, seeking not only to preserve, but also to enhance their capital in an environment of economic uncertainty. This phenomenon reaffirms the importance of geographical diversification in the investment strategy and the role of Uruguay as a key market in the region.
– Gonzalo Martínez Vargas is CEO of Moebius Real Estate Consulting.
Source: Ambito
