Added to the constant interest of Argentines in investing in the Uruguayan real estate market —both to move from their country and to do business— has been the inquiries from chileanswho, due to the social convulsions that have been generated in the trans-Andean country, have set their sights on local real estate, explained to Coffee & Business entrepreneurs in the field.
However, in recent weeks, the novelty did not come from Argentina or Chile, but from Peru.
According to the CEO of Moebius Real Estate Consultant, Gonzalo Martínez, in recent weeks there have been more queries than usual from upper class peruvianwho were attracted by the real estate market, mainly in Montevideo.
In this sense, the businessman and architect Fabián Kopel —who is also CEO of the Kopel Sánchez Arquitectos studio— told Coffee & Business who is also aware of interest of Peruvians in the real estate market in Uruguay.
Both businessmen assured that, although it is still difficult to quantify this trend because it is incipientThis is a remarkable move. Usually, Peruvians, to a greater extent, are attracted by the markets of Spain and the United States —in particular, by Miami—, due to “seamless connectivity” they have with those places. “In recent weeks, businessmen in the sector have registered an interesting movement” of consultations by that country.
The profile of Chileans interested in Uruguay
According to a report elaborated by Moebius, “almost 90% of inquiries related to investments for income are made by foreigners: 65% are Argentines and 20% Chilean”.
The trasandinos bought Approximately 50 properties in the last three monthsdetails the report. Regarding the profiles of the interested parties, it is indicated that “in general they are men between 35 and 55 years old, businessmen and professionals”. In addition, “they look for high rents and, above all, the tax exemptions of the promoted housing”, he adds.
One of the reasons why Chileans are seduced by the Uruguayan market is because the business opportunity is greater. “Profitability in Chile in real estate is between 3% and 4%, while in Montevideo, annual rents can be found around 6%”, the study concludes.
The trend of Argentines remains firm
“Argentine investment is active, there is interest, consultations and, above all, real estate sales concretions,” said Kopel.
“The exchange difference and the political movement” with the assumption of Sergio Massa as Minister of Economy at the beginning of August in Argentina “did not cause a change in the trend”, indicated both Martínez and Kopel.
However, according to Pablo Anchordoqui, director of Uruguay Link Real Estate, which operates in the East of the country, The euphoria with which Argentines came to invest during the months of the pandemic is no longer being perceived “when, in many cases, there were Argentine clients who bought properties from a distance, without even seeing them” physically, with the aim of escaping from the strict quarantine imposed by the government of Alberto Fernández.
Both Kopel and Anchordoqui agreed that Spain and the United States they were the alternatives for Argentines from upper-middle and upper classes who opted to settle in Punta del Este in recent years. At present, although the distance from Spain plays against it, for Anchordoqui, In recent times, the European country has become a stronger alternative to receive this segment of Argentines, regarding the Uruguayan market.
“Although in the winter months the influx of Argentines usually stops, there is a clear decline in the real estate market this season” —Anchordoqui explained—, which shows the breaking of the trend that had been registered in the East.
“It’s a shame because Uruguay made efforts (and even continues to do so) to attract families to live and invest, but the price of the dollar negatively influenced the trend,” reflected the businessman who has been working in the field for 13 years.
In any case, Anchordoqui is optimistic for the hottest months, in which he hopes that “the interest of Argentines will be resumed.”
A dynamic industry
According to DGI data that processed The Observer, During the first half of 2022, real estate sales were registered for at least US$890 million. These figures reflect that the real estate sector continues to show dynamism after the rebound that was recorded in 2021.
According to data from the National Housing Agency, between January and April of this year, 686 affidavits of the sale of promoted housing were registered, 15% more compared to the same period last year.