The National Housing Agency (ANV) released its latest report on the Promoted Housingthrough which housing construction projects located in certain areas of interest are exempt from a wide range of taxes.
The prices of homes built within the framework of this program, measured in dollars, have shown a permanent upward trend, beyond the usual monthly fluctuations. In 2018, the price per square meter was around $1,900. In 2023 the average exceeded $2,200 (Graph).
However, it is known that the dollar has lost relative value in the Uruguay in recent years and – therefore – it is of interest to see the evolution in real value. Precisely, the report tracks prices measured in Indexed Units (UI), unit that follows the CPI (that is, a unit that maintains the real value). In this case, the trend is different: after reaching a maximum around 2020, the price per square meter in Indexed Units had been falling continuously, until in the second half of 2023 – the last reported data – it was recorded a rise Thus, the real value of the square meter in promoted homes tends to be close to the average of the last 15 years.
Price of the house promoted in UI.jpg
This difference between price trends in dollars with respect to the real value in UI constitutes a real estate market distortion Uruguayan who – according to the experts consulted by Ambit– would be well worth overcoming. “The ideal would be to have prices in current pesos or at least in UI, but the use of dollar It is so widespread that it is difficult to change that modality,” said a real estate operator with years of experience in the sector.
By neighborhood
The report also makes a detailed survey of prices according to the neighborhood of Montevideo. The highest price per square meter was recorded in Palermo (2,596 U$S/m2), followed by Malvin (2,571 U$S/m2) and The Bleached (2,500 U$S/m2). The general average for Montevideo is 2,184 U$S/m2.
But Montevideo is not the department with the highest average price, but cannelloni, with an average value of 2,804 U$S/m2. In Maldonado the average is 1,969, in Paysandu 1,600 and in Leap 1,157 U$S/m2.
Likewise, the report highlights the gradual decline in the average size of the Promoted Housing. In the initial years of the program it was located around 68 square meters; In the last year the average has been 59 square meters. This reflects the recent authorization to include studio apartments in projects, which – in turn – is a response to a growing demand for smaller homes, in line with the reduction in the average number of people in the home.
Source: Ambito
