In the 12 years of validity of the plan Promoted Housing in Uruguay, 22% of the total investments came from Argentina, according to an analysis by Moebius Real Estate Consultant.
In total, Argentines bought more than 7,760 estate and 3,682 garages, with an invested capital of nearly 800 million dollars. The figures are equivalent to saying that the inhabitants of the neighboring country bought 647 homes and 306 garages per year.
This emerges from the report “Tsunami of investment and construction of Housing Promoted in Uruguay”, prepared by the Investments and Analytics department of Moebius Real Estate Consulting, which counted all the projects that were approved from December 2011 to the same month of 2023.
“Argentines are delighted with the housing promoted in Uruguay,” he said. Gonzalo Martínez Vargas, CEO of Moebius Real Estate Consulting, who pointed out that “they found a solution to the investments that they could not make in their country, as a result of the inflation, the law of rentals and the stocks”.
For Martínez Vargas “not only does it reflect confidence in the Uruguayan real estate market but “the capital allocated, of 800 million dollars, is really wonderful.”
What is the profile of the Argentine investor?
The study indicated that Argentine investors prefer 2-room apartments, as it is the property that tenants are most looking for. lease. The destination of the investment is income, with a very low percentage of those who buy to live. In fact, they seek income that exceeds 7% annually.
As it turned out, in Montevideo, The most attractive neighborhoods to invest in are Centro and Cordón, along with Barrio Sur, Tres Cruces, Palermo and Ciudad Vieja, due to their proximity to Avenida 18 de Julio, La Rambla, Parque Rodó and Playa Ramírez. In fact, 86% opted for Montevideo, 6% for Maldonado (not counting Punta del Este, which is not a Promoted Housing area), 5% in cannelloni and 3% in the rest of the country.
Furthermore, it was highlighted that Argentines prefer to buy in well, due to the lower prices and financing until the property is occupied, something that coincides with their inability to access mortgage credits.
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The outlook for 2024
Finally, Martínez Vargas highlighted that “it is expected that during 2024 the pace of investment of almost 2 properties per day, which would mean an investment of 200 thousand per day, that is, 6 million dollars per month.”
The CEO of Moebius valued that “the fascination of Argentines with the Uruguayan real estate market has deep roots, historically beginning with the attraction towards Punta del Este, a coveted destination for its idyllic beaches and distinguished lifestyle.”
However, he warned that “over time, this interest has spread towards Montevideo, especially towards the promoted housing sector, evidencing an evolution in real estate preferences that now encompass the capital for its investment opportunities in affordable and quality housing, supported by government incentives.
Source: Ambito
