Luxury projects are being built in Montevideo neighborhoods like Punta Carretas, Pocitos and Malvín

Earlier this month InvestBA reported on the recent gains in the Buenos Aires real estate market: closings up 37%, total value of all sales up 57% and median prices up 15%. Now the news from across the river is equally encouraging and offers more evidence of regional strength following a weak 2009 for both countries. Uruguay’s National Statistics Institute released housing data for the first quarter of 2010, and the total number of closings is up 18% compared to 1Q09. The total dollar amount of all 15,015 real estate transactions in the first quarter of 2010 also rose 32% compared to 1Q09; yet, when adjusting from U.S. dollars to Uruguayan pesos the increase was a more modest 9.3%. (As evident on this XE.com chart, the U.S. dollar has fallen 18% against the peso over the past year.) Looking at the most recent month of available data, the most real estate closings took place in Montevideo (34%), Maldonando (13%), Canelones (12%), Cerro Largo (6%) and Colonia (5%). The median price per square meter of all transactions in the first quarter rose 6% over 1Q09, while the Construction Cost Index (construction costs less land value) posted a modest 5% gain over 1Q09. News was also positive for property owners in the Uruguay rental market, as average rental prices rose 6% in the first quarter to US$342. The three most expensive markets for renters were Punta Carretas, Pocitos and Malvín with median rental rates of US$418, $394 and $387, respectively. (Full Report PDF in Spanish)