Time to Look at Uruguay Property Investment
With a large proportion of investor attention focused on the larger and more popular Brazil, Uruguay has so far barely appeared on the property investor's radar.
However, with its highly competitive property prices, booming economy and growing tourist sector, Uruguay has plenty to offer when it comes to property investment potential.
Uruguay is a wealthy country - one of the continent's richest, in fact - and has managed to overcome high unemployment and poverty, which are present in many other countries in the region.
Recent economic performance is particularly spectacular.
According to the Central Bank of Uruguay, the GDP growth rate during Q1 2008 reached a staggering 10.
9%, proving that Uruguay is well on target for an annual rise of 6.
8%.
The Central Bank predicts that GDP will increase by a healthy 4.
5% in 2009.
Not only is the Uruguay economy booming but unemployment is falling steadily and the unemployment figure of 7.
2% in May 2007 represented an all-time low.
Uruguay is a well-established tourist destination and is particularly popular with Argentinians and Brazilians, although other nationalities are rapidly discovering Uruguay's many attractions.
The country boasts over 650km of coastline with stunning beaches and also enjoys an excellent climate.
Tourism is on the increase and according to the Ministry of Tourism, visitor numbers grew throughout the country during the first 3 months of 2008 with some resorts seeing huge rises.
For example, visitor numbers to Costa Oceánica rose by over 130% and those to Colonia by over 50%.
Attracted to the country's low property and land prices as well as the general absence of restrictions on purchase by foreigners, foreign investors are already active in Uruguay with Argentinian and Spanish companies especially prominent.
Uruguayan land, particularly on the border regions with Argentina and Brazil [http://www.
obeliskinternational.
com/Aguas_Cristalinas_The_Project.
html], is top of investors' lists and the Ministry of Agriculture estimates that approximately 25% of land in Uruguay was bought by foreigners in the period 2000 to 2006.
Apart from land purchases, foreign investment is also present in several large real estate projects such as a US$200 million complex in Ciudad de la Costa in Canelones and a US$100 million in a hotel and villa complex in Punta del Este.
Competitive property prices offer further incentive for investment in Uruguay.
Prices are far cheaper than those in many European countries as well as those in neighbouring Argentina.
Land prices are especially low and agricultural land costs around US$2,000 per hectare, up to 20% less than Argentina.
Homes in the capital, Montevideo, cost between US$50 and US$80 per square foot (US$100 for fully refurbished properties) and prices for property in coastal resorts are similarly competitive.
Along with political stability, a booming economy, well-established tourism and low-entry prices, Uruguay is certainly the next country to look in your South American investment portfolio.
However, with its highly competitive property prices, booming economy and growing tourist sector, Uruguay has plenty to offer when it comes to property investment potential.
Uruguay is a wealthy country - one of the continent's richest, in fact - and has managed to overcome high unemployment and poverty, which are present in many other countries in the region.
Recent economic performance is particularly spectacular.
According to the Central Bank of Uruguay, the GDP growth rate during Q1 2008 reached a staggering 10.
9%, proving that Uruguay is well on target for an annual rise of 6.
8%.
The Central Bank predicts that GDP will increase by a healthy 4.
5% in 2009.
Not only is the Uruguay economy booming but unemployment is falling steadily and the unemployment figure of 7.
2% in May 2007 represented an all-time low.
Uruguay is a well-established tourist destination and is particularly popular with Argentinians and Brazilians, although other nationalities are rapidly discovering Uruguay's many attractions.
The country boasts over 650km of coastline with stunning beaches and also enjoys an excellent climate.
Tourism is on the increase and according to the Ministry of Tourism, visitor numbers grew throughout the country during the first 3 months of 2008 with some resorts seeing huge rises.
For example, visitor numbers to Costa Oceánica rose by over 130% and those to Colonia by over 50%.
Attracted to the country's low property and land prices as well as the general absence of restrictions on purchase by foreigners, foreign investors are already active in Uruguay with Argentinian and Spanish companies especially prominent.
Uruguayan land, particularly on the border regions with Argentina and Brazil [http://www.
obeliskinternational.
com/Aguas_Cristalinas_The_Project.
html], is top of investors' lists and the Ministry of Agriculture estimates that approximately 25% of land in Uruguay was bought by foreigners in the period 2000 to 2006.
Apart from land purchases, foreign investment is also present in several large real estate projects such as a US$200 million complex in Ciudad de la Costa in Canelones and a US$100 million in a hotel and villa complex in Punta del Este.
Competitive property prices offer further incentive for investment in Uruguay.
Prices are far cheaper than those in many European countries as well as those in neighbouring Argentina.
Land prices are especially low and agricultural land costs around US$2,000 per hectare, up to 20% less than Argentina.
Homes in the capital, Montevideo, cost between US$50 and US$80 per square foot (US$100 for fully refurbished properties) and prices for property in coastal resorts are similarly competitive.
Along with political stability, a booming economy, well-established tourism and low-entry prices, Uruguay is certainly the next country to look in your South American investment portfolio.
Source...