Boom of Argentines in Uruguay revives interest in real estate investments

Boom of Argentines in Uruguay revives interest in real estate investments

“In the urban area, there are currently about 650,000 people in the department of Maldonado. In total, 250,000 are permanent residents and the rest (400,000) are vacationers who come to spend these days,” commented the president of the Punta del Este-Maldonado Real Estate Chamber, Javier Sena, who also maintained that the occupancy was between 90 and 95% this start of the season between locals and foreigners.

A great attraction for Argentines this season is the exchange rate since dollar prices remained stable in Uruguay compared to last summer, but this year they are more accessible for Argentines and, in some cases, they are competitive with respect to premium national destinations.

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“There was a strong increase in the influx of Argentines compared to the previous season. The area is being revalued by both investors and people interested in living, since the quality of life has made many Argentines and Uruguayans choose to live in Punta del Este, and surrounding areas, all year round. The public was changing and although the traditional luxury projects continue, there are new profiles that range from young people who choose to live in the area thanks to the benefits of home office to older adults who are looking for a calmer pace of life,” said Santiago Pierro, President of the developer Liderus.

“After the pandemic, services, infrastructure and leisure activities in general grew tremendously, such as sports and cultural activities that accompany life surrounded by nature, such as beaches or the sea. This boosted the real estate market as a haven of value, with low maintenance costs and values ​​that very few countries in the world are providing. This year the annual rent has increased by 5 and 5.5% due to the greater pressure of demand for family housing. To this is added the real estate income, which is the valuation that the properties will have due to their quality, location and comfort and which we calculate will be between 2 and 2.5% additional annually, which results in the percentage of annual profitability could be 8%,” Pierro analyzed.

How much does it cost to rent an apartment in January in Punta del Este

Furthermore, based on previous analyzes such as the number of reservations and inquiries, Sena maintained that “for the second half of January, we think that more people will continue to come than last year.”

Regarding the values ​​in Punta del Este For the second half of the month, he indicated that the properties Front-line apartments, located facing the sea, are around US$4,000 for one bedroom, while two-bedroom apartments are around US$6,500. While prices for second-line properties are around US$2,000 per fortnight for one bedroom, while two-bedroom options reach US$4,500.

Other tourist destinations in Uruguay and investment alternatives

“Traditionally, summer areas are beach places and second homes, where the investment is based on the conservation of heritage and the possibility of using those homes, mainly during the summer. That is to say that at the same time that they go on vacation, mainly Argentines, they take refuge their savings outside their country in a place with a great attraction for vacations and with economic policies that are traditionally more stable and secure, such as those of Uruguay,” argued the architect Fabián Kopel.

“For its part, Montevideo is an option that allows you to protect capital, with the advantage of using it both for personal use and to obtain a more stable profitability through monthly rentals, which makes it more predictable for investors, thanks to a population permanent resident throughout the year. We even have cases of Argentines who first pass through the capital, especially in summer, to see or reserve a unit in one of our projects, and then go on family vacations in traditional seaside areas of the country,” added Fabián Kopel.

In this context, Sebastián Sánchez, co-founder of Kopel Sánchez, exemplified that in the Uruguayan capital you can acquire a well unit – for an amount close to US$ 100,000 – and obtain an annual return in dollars that can reach 11%. , between what is received in rent (6%) and the revaluation of the land (5%), thanks to the growing demand for real estate developments.

For its part, Rocha has been experiencing a great season, like the main tourist destinations in the country, where tourist arrivals increased by 15% compared to last year, according to various transportation businessmen. In this regard, Gustavo Shaban, Manager of Rutas del Sol, expressed that “the encouraging prospects regarding the arrival of tourists to the department of Rocha are confirmed” where, among others, tourist destinations such as La Pedrera and La Paloma stand out.

In conclusion, the real estate sector showed renewed interest from Argentine investors in Uruguaywho take advantage of property opportunities, mainly in Maldonado, Rocha and Montevideo.

Source: Ambito

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