Uruguay Property Investment For Sale
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Uruguay Property Investment For Sale

 

"With FDI steadily increasing and a purchase process favourable to the foreign investor, Uruguay offers potential."

 

The second smallest country in South America, Uruguay sits between Brazil and Argentina and is fast becoming a playground for the young and wealthy.  Its metropolitan towns and cities and Atlantic white sand coastline attract increasing numbers of visitors from far and wide and offer attractive real estate prices and exciting potential for investors.

Uruguay has strong and stable economic growth with a thriving export-oriented agricultural sector, a well- educated work force and high levels of social spending.  Uruguay also benefits from high levels of FDI and is considered one of the safest places in the world, the second least corrupt nation in South American, one where political and working conditions are amongst the freest on the continent.

With low taxes, high rental yields and good capital gains plus a rental market strongly pro-landlord this is a country offering great potential for the right investments

Areas to consider include:

Punta Del Este – The St Tropez of South America is where the crème de la crème of South American society holidays.  With white sand beaches and buzzing nightlife the area is attracting more and more tourists every year although occupancy levels drop dramatically with the temperatures out of season. Alternative cheaper coast resorts along the Gold Coast, such as the Uruguayan Riviera are significantly less developed and therefore worth investigating.

Montevideo – The capital with its Spanish and art deco styles has been overshadowed by cities such as Buenos Aires so prices are lower here and offer year round rental yields. 

Country Guide

Geography

Bordering Brazil, Argentina and the Atlantic, Uruguay has a mountainous landscape which is broken up by several rivers and streams. Argentina and Uruguay are separated by the River Uruguay which dominated the western border. There are a number of beaches along the coast which become very popular in summer months. Agriculture is very important in Uruguay and the land is ideal for cattle grazing. Montevideo is the capital of Uruguay with almost half of the population residing both in and around the city. The Rio Negro is the main international river which runs from Brazil through the center of the country and joins into the Rio de la Plata.

Government

The government of Uruguay has been a Republic since 1803. 

Language

Spanish is the official language in Uruguay, along with Portunol and Brazilero. English is spoken in popular tourist areas.

Standard of Living

Uruguay enjoys a moderate standard of living that compares well against other Latin American countries. Its low birth rate, high life expectancy, and relatively high rate of emigration by younger generations mean that the country has a mature population. The country is not in extreme poverty and health care is available to all nationals. Uruguay has one of the lowest crime and corruption rates in Latin America. The country is known for having extremely good infrastructure and is distinguished by its high literacy rate.

 

Country Economy

Uruguay has strong and stable economic growth with a thriving export-oriented agricultural sector, a well- educated work force and high levels of social spending.  Uruguay also benefits from high levels of FDI and is considered one of the safest places in the world, the second least corrupt nation in South American, one where political and working conditions are amongst the freest on the continent.

With an economy reliant on live stock and related exports from neighbouring countries Brazil and Argentina, there is the possibility of another crash in the future. Its economic stability then is somewhat volatile.

Key Industries

The Uruguayan economy greatly depends on agriculture, which accounts for almost 10% of the country's GDP and is the biggest foreign exchange earner. Farming, finance and tourism industries are also very important for the growth of the economy, all of which are performing well. As the country relies heavily on trade to sustain good economic growth it is very exposed to possible economic breakdown.

Hotspots

Montevideo

Situated in the south, Montevideo is the country's capital and the largest city in Uruguay. The city has very traditional customs mixed with a laid back American approach to life. Montevideo has one of the most important harbours in Latin America. There are several beautiful beaches in and around the city which attract tourists each year, including Buceo beach, Malvin beach and Playa de los Ingleses. There are several monuments, museums and historic buildings to admire in and around the city. Montevideo has been stated as the city with the highest standard of living in Latin America but sadly it has been overshadowed in both tourist and investment terms by cities such as Buenos Aires meaning property prices have remained low. Sensible investment property purchases here will either be in a well equipped coastal development or in restorations of existing historical buildings, both of which should remain in demand and therefore provide a reliable exit strategy. The capital's year round appeal is another lure for investors looking to obtain consistent rental returns. 

Punta Del Este

The St. Tropez of South America, Punta Del Este is the place to see and be seen in. A vibrant city in a stunning position, it offers reams of pristine beaches and an elite clientele. Anyone who's anyone in South America frequents this coveted spot and Punta Del Este is considered the most up scale resort in Latin America, known for its good-looking people and lively nightlife. The resort is becoming increasingly popular with North Americans and Europeans. The town only has a small population, but during the tourist season this number swells dramatically.  

Growing demand for high end property is provoking increased construction and laying the foundations for a very successful investment future, although this is already one of the most developed areas in the country and fears over its sustainability are arising. Located 130km to the east of the capital Montevideo, Punta del Este attracts many visitors every year with its white sandy beaches and buzzing nightlife. The area is known for its huge lagoons, 'Del Sauce', 'Del Diario', 'Blanca' and 'Jose Ignacia'y'Garzon', each one with different qualities for the practice of various sports.

Punta Del Este also has an exceptional yacht port, which in high season hosts over 500 yachts and sailing boats from all over the world. January and February are the busiest months as a handful of celebrities and wealthy yacht owners take over the 20 miles of picturesque beaches to enjoy the scorching summer temperatures. Out of season however, the city quietens and occupancy levels drop off.

Chuy

Chuy is situated on the border of Uruguay and Brazil. The main street in the town forms the border between the two countries and because of its positioning half the town speaks Spanish and uses the pesos currency whereas the other half of the city speaks Portuguese and uses the reais currency. Although there isn't much to see in the town it does have tax free shopping and if you travel outside the town towards the west there is an old Spanish fortress which is worth a visit. 8 km to the east of Chuy are a cluster of beaches that form the Barra Del Chuy resort which is popular with bathers.

Piriapolis

Piriapolis is a small beach town between Montevideo and Punta Del Este. Piriapolis pre-dates Punta De Este but is less populated with a more laid back atmosphere. As a beach resort, it is active between December and March. The town has many attractions such as Pirias Castle and the natural reserve of native South America, Fauna. Much is centred on and around the Rambla de los Argentinos waterfront promenade whilst many bars, restaurants and hotels are dotted throughout the resorts and town centre.
 

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