A US$4 billion idea
Julio Villamide and APPCU generated the social interest housing law, today called “Promoted Housing”, enacted in August 2012. This law has allowed a cumulative investment of US$ 4,000 million to date.
In our report “Investment and Construction Tsunami: housing promoted in Uruguay” we present very optimistic data. In the 12 years since the law was enacted, 42,000 homes have been planned, 9 homes are built per day, a project is started every 3 days and the daily investment is US$800,000. In 2024, this daily investment has doubled, reaching US$ 1,639,000.
Furthermore, 22% of the total – some 8,000 homes and 2,500 garages – were acquired by Argentine investorswith an investment close to US$ 1,000 million. These numbers are highly positive, and the trend is not only maintaining, but continues to increase. Most of these investments come from developers who will continue with new projects.
The north also exists
However, there are also worrying figures regarding the geographical distribution of housing. Our report reveals that only 6% of the total homes are built in the north of the country (considering the south from Cologne until Rocha). This represents about 2,500 homes for 33% of the population: just one home for every 458 inhabitants. On average, one home is built per month in each department in the north.
Despite these numbers, the demand for housing in the north is genuine. This is where future investments should be directed.
Why invest in Uruguay?
The historical moment to attract investments in Uruguay is now: we have the country risk lowest of Latin Americathe highest investment rating in our history, a inflation single-digit rate maintained for more than 20 years, and a solid rental law that offers certainty to investors. Furthermore, the real estate market rentals is in full expansion. However, this exceptional scenario will not last forever. It is crucial that both investors and market players understand that current conditions are ideal to grow the real estate sector like never before. If we do not act quickly, we could lose a unique opportunity to consolidate Uruguay as a preferred investment destination in the region.
In addition, international investment groups are already interested in investing in rental properties and benefiting from the tax exemptionsseeing Uruguay as a very attractive option.
Is it possible to raise US$2 billion in housing from new investors?
It is not only possible, it is necessary. To promote the construction of thousands of homes, we propose a clear strategy: the expansion of the Promoted Housing Law. This initiative seeks to extend tax exemptions from 10 to 20 years, which would allow us to capture up to US$ 2,000 million in international capital. These funds should be allocated to projects in the interior of the country, with the exclusive objective of developing rental housing. With this measure, we would attract new investors looking for stability and long-term benefits, while boosting the economic growth and social in less developed regions, improving access to housing and boosting local economies.
This would allow the crcreation of more than 10,000 jobs and the construction of 20,000 homes. By allocating these homes to rental, a significant impact would be generated on the market, contributing to a reduction in the cost of housing. rentals and facilitating access to housing for a greater number of people.
What would be the cost of this extension?
Zero dollars. The State would not have to allocate funds for the construction of homes, since the investment and development would be borne by the State. private sector. In exchange, tax exemptions would be generated for an approximate value of US$ 12 million annually, an insignificant figure when compared to the positive impact that this measure would have on the economy and the community. attraction of international capital. The benefits, in terms of employment and real estate growth, far exceed this fiscal cost.
Uruguay’s unique appeal on the international stage
Currently, no country offers rental tax holidays for a period of 20 years. If Uruguay implements this measure, it would be news in the main newspapers in the world, positioning us on the radar of large investment funds and international family offices. These investors would quickly inquire about the advantages of investing in our country, opening an invaluable opportunity to raise capital and consolidate Uruguay as a preferred investment destination in the global real estate market.
Our proposal to the government
A year ago, in an informal meeting, we had the opportunity to present this idea to the president Luis Lacalle Pouoffering to expand details, discuss the initiative and provide complementary information, especially on the real estate market. However, to date, we have not received any response or comment in this regard.
It is vital that in this election campaign Candidates understand the importance of continuing to support initiatives such as promoted housing, which not only generate housing solutions, but also energize the real estate market, attract foreign investment and generate employment. But they must also go further, thinking about how to improve the urban planninghow to balance development between Montevideo and the interior, and how to take advantage of technology to make the buying, selling and rental processes more efficient.
In short, the issue of housing should not be a simple electoral promise, but rather a strategic axis that marks the difference between a country that looks to the future and another that remains anchored in empty speeches. If we want to continue moving forward, we need leaders who understand the value of real estate as an engine of development and as a fundamental part of the well-being of society.
The year 2030 is just around the corner, and we cannot afford to waste any more time. It is imperative that we take the initiative now, acting decisively to go out and find investors who can transform the country’s housing and economic landscape. Uruguay has all the conditions to attract international capital, but we need to move quickly, with vision and leadership, if we want to take advantage of this historic opportunity and make a difference in development for the future. Inaction is no longer an option.
Our experience as consultants allows us to affirm that this proposal is viable, easy to implement, and will surely be well received by investors, generating a high level of interest.
* Gonzalo Martínez Vargas is CEO of Moebius Real Estate Consulting.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
