Values in dollars show a trend towards moderation, according to the latest INE report on the real estate market.
He Statistics National Institute (INE) released real estate market data in Uruguay, based on operations registered in the General Directorate of Records (DGR), from which it follows that Montevideo -main market- there is a tendency towards moderation in prices measured in dollars.
According to the latest data, which goes until February in the case of prices, and until March in the case of operations, it can be presumed that the Uruguayan capital would be close to the ceiling in values in dollars, the currency used in the real-estate market local.
In fact, as the attached graph shows, it has been several months since the increases They are modest and even in some months there is no variation. The data shows the rolling year average of the median of prices, which avoids the distortion that can be generated by the inclusion of exceptional businesses, both for low price and for exceptionally high prices.
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Solid square, moderate interest
This tendency to a stabilization of prices in dollars makes sense: Uruguay It is a solid place in real estate matters, with high levels of legal security and economic stability, which is why it has captured the interest of many investors in recent years, particularly from outside the country. The Argentines They are common actors in the application of capital in housing, from original real estate development projects to rental investments through rental or resale. Investors from other countries in the region and internationally have joined them.
However, real estate operators consulted these days by Ambit They have pointed out that this interest has now been moderated by the rise in values itself. “Entering the market today is expensive,” said one operator. Meanwhile, the placement on the market of the new investments that have been accumulated in recent years is being processed, particularly in investment of Promoted Housing. In this sense, the number of purchase and sale transactions in the moving year to March (the latest data) rose 4% compared to the same data from a year ago and is at multi-year highs.
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The real value of homes drops
As we pointed out, the Uruguayan real estate market is managed in dollars, which, according to experts, generates important distortions at the time of price formation. When those prices in dollars are converted into pesos and discounted for inflation (which would be the real value of the estate), a downward trend is seen, to the extent that the dollar has been evolving below the inflation in the local exchange market.
In fact, the latest analyst projections suggest that the same thing would happen this year: with inflation that would be at 5.5% while the dollar would rise just 2%).
According to the figures of the INE, the price in dollars of the home in Montevideo It rose 3%, taking the rolling year to February of this year and compared to the rolling year to February of last year. But real value falls 6% in the same comparison.
Source: Ambito
