InvestBA recently profiled 15 Montevideo barrios and property appreciation from 2005-2010.
If February is the time to scoop up real estate in Punta del Este at deep discounts to January rents, March may be the month to play the same game in Montevideo and lock in a full-year bargain.
In a series of interviews with local brokers, El Pais’ Andres Oyhenard paints a portrait of a real estate market where rental rates are leveling off and potential renters are apparently feeling no sense of urgency.
In the Uruguayan capital, where rental rates have historically outpaced inflation, the urgency has suddenly flipped to property owners hoping to get renters to sign annual contracts before summer vacations end here in the Southern Cone.
The author cites examples of Montevideo apartments that typically rent for US$750-$1,050 per month being offered at rates 10% below 2011 levels. According to one broker, additional pressure will be felt in March when a wave of new construction apartments hit the market in Montevideo. While 40% of the new units will be owner-occupied, the remaining 60% will jump into Montevideo’s growing pool of rental properties.
Another source says Montevideo renters are no longer willing to just pay any asking price. “The recommendation that we are making to owners is that they adjust their prices down a little bit now, because each month that passes without a tenant will make it more difficult to recoup over 2012 when that apartment was vacant for three or four months.” (Full Story in Spanish)
For more information about Uruguay real estate opportunities, download the new issue of InvestBA Privada.
