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Real Estate Showdown: BA vs. Uruguay

On September 1, 2010, In foreign investment, tourism, uruguay, by InvestBA
Rock Em Sock Em Robots

Stay in BA or follow the Movida Esteña? Argentines and foreign buyers alike are asking the question.

More Argentines are crossing the river to invest in Uruguay real estate. While this headline from Mirador Nacional (MN) highlights the obvious, it also digs deeper with a cost per square foot comparison of Uruguay destinations with some of Buenos Aires’ most expensive neighborhoods. But first, MN points to the oft-cited $1.5 billion in Uruguay closings over the past 18 months number and breaks it down by region: $700 million in Punta del Este, $120 million in José Ignacio & Garzón and $40 million in La Barra. And while an estimated 60% of Punta del Este buyers are from Argentina, the remaining 40% is a rich cultural mix from Brazil, Canada, Chile, the E.U. and increasingly the United States. Financial, legal and political stability are three factors in Uruguay’s favor as are competitive real estate prices. The average new construction cost in Punta del Este is $288/SF which compares favorably with $250/SF in Las Cañitas, $278/SF in Palermo Soho, $325/SF in Recoleta and $342/SF in Puerto Madero, according to Reporte Inmobiliario. Recent sales in Punta del Este include a 2/2 apartment in La Mansa for $341,000, a 3/2 in La Brava for $286,000 and a furnished 2/2 on Roosevelt Avenue for $245,000. Still, the comments section of the article reveals Punta del Este isn’t for everyone. “Why invest in a place that is only active one month each year?,” writes Lucia, and Carolina opines, “It’s too small and stressful in summertime.” For these ladies, emerging destinos uruguayos like Punta Colorada, San Francisco or Playa Verde might be a better fit. (Full article in Spanish)

For more news and information on local real estate markets, search our archives and download the new edition of InvestBA Privada.

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Uruguay’s Hot Tourism Tandem: MVD & PDE

On August 24, 2010, In foreign investment, real estate, tourism, uruguay, by InvestBA
Montevideo Airport

First Impressions Are Lasting: Montevideo's ultra-modern airport is a wonderful gateway to Uruguay.

Back-to-back stories this week from MercoPress highlight the tourism attraction and real estate growth in Uruguay’s two leading destinations: Montevideo and Punta del Este. The statistics are encouraging, as they demonstrate some positive regional trends: more inbound visitors from countries besides Argentina, the long-standing number one for tourism exports to Uruguay, and a greater willingness among Uruguayans to explore other corners of the Southern Cone. In fact, Uruguayans posted triple-digit gains of citizens visiting Paraguay (+228% ) and Chile (+102%). Of those foreigners visiting Uruguay, the numbers reflect the economic status quo in key international markets: almost 25% more real-empowered Brazilians and 7% fewer visitors from the U.S. Montevideo’s cultural and urban Renaissance is finally being reflected in the tourism numbers, as more visitors made MVD their primary destination in the first six months of 2010 compared to Punta del Este. But don’t feel bad for PDE. Data released last week by the country’s Tourism Office shows $1.5 billion USD in real estate transactions taking place in the popular beachside destination over the past 18 months alone. The government estimates approximately 18.2 million square feet of new residential construction has been built in the last five years and—given current absorption rates—it’s not surprising the Mujica government is encouraging more foreign investment.

For more information on Uruguay’s quality of life and cost of living, visit our archives and download the new edition of InvestBA Privada.

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Cultural Warriors: Why BA Loves Her Books

On August 10, 2010, In arts & entertainment, buenos aires events, culture, tourism, by InvestBA
El Ateneo

When you've got bookstores like this, who needs a Kindle? BA's cultural commitment garners praise.

As governments around the globe are seeking ways to curb spending and slash deficits, Andrew Cohen says “cutting culture” is not an option in Buenos Aires. Cohen, the president of Canada’s Historica-Dominion Institute, pens a smart op-ed praising the cultural commitment one sees daily on the streets of BA from the bookstores to the theater to annual gatherings like arteBA and the Feria del Libro. Cohen describes BA as “a city in love with books” where small, independent booksellers are on equal footing with the big box hipermercados thanks to laws requiring books be sold at the same price throughout the country. He then traces Argentina’s modern-day obsession with books back to the cultural priorities and donations of founding fathers like San Martín and Belgrano. The piece concludes with a 1-on-1 conversation with a serious BA cultural warrior, Hernán Lombardi. “If you don’t invest in culture, you go home,” Culture Minister Lombardi tells Cohen adding “In a crisis, we worry about losing identity. That’s when we need to support culture.” When Lombardi was named Minister of Culture, it coincided with a decision to place the city’s tourism promotion arm under the umbrella of culture. At the time of his appointment in 2007, La Nación said it showed the Macri administration’s commitment to attracting more domestic and foreign visitors to BA for major cultural events. The renovation and re-opening this year of the Teatro Colón was another feather in the City’s ever-expanding cultural cap.  (Cultural Capital by Andrew Cohen)

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Uruguay Embraces Pro-Construction Policies

On July 30, 2010, In foreign investment, real estate, tourism, uruguay, by InvestBA
Mujica Astori

President Mujica and VP Astori want to encourage more foreign developers to launch projects in Uruguay.

After the U.S.’s $787 billion Grow Government package which Harvard essentially labeled a failure, it’s refreshing to hear about a stimulus package that could actually create jobs, promote development and provide some much needed housing. Montevideo’s LR21 reports today on the Uruguay government’s decision to promote a series of fiscal stimulus measures to incentivize private investment in the construction of new homes and condominiums. The President and Vice President of the Republic, José Mujica y Danilo Astori, made the announcement yesterday at a luncheon hosted by the APPCU, the Association of Private Developers in Uruguay. While some members of the U.S. Congress seem completely out of touch with the private sector, President Mujica said he values interaction with groups like APPCU to better understand the needs and challenges facing leaders in the country’s most important job creating sectors. Vice President Astori also acknowledged the critical role national and foreign developers will play in realizing one of the priorities of the Mujica administration, “promoting tourism-related real estate development which provides tremendous revenue and job creation for Uruguay.” And while national builders still account for he bulk of the new construction, Astori officially rolled out the light blue carpet for foreign developers. “These incentives are as much for national investors as they are for foreign groups who can collaborate with the public sector in developing new projects,” Astori said adding, “National investors dominate housing construction, while in the real estate tourism sector, we are hoping for more foreign investment.” (Full Story in Spanish)

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Brazil Business & Banks Come A Calling in BA

On July 16, 2010, In competitiveness, foreign investment, franchises, by InvestBA
Banco do Brasil

Crescente: Bovespa President Edemir Pinto & Banco do Brasil CEO Aldemir Bendine at this month's offering.

With the 2014 World Cup and 2016 Olympics on the horizon, there’s no question about all eyes being on our neighbor to the north. With the world poised to descend on Brazil in the coming years, it is interesting to note how Brazil is beginning to look beyond its borders and engage with foreign countries. Right now, for example, the slopes of Bariloche are teeming with well-heeled paulistas and cariocas, and lilting Portuguese accents can be heard around BA’s finest restaurants and gallerias. But the Brazilian Foreign Investment Experiment (BFIE for short) is starting to expand well beyond tourism and into the boardroom with Argentina being the logical first step, says the Latin Business Chronicle. “The country’s corporate sector has embraced globalization,” writes LBC, “and many Brazilian companies have chosen neighboring Argentina for their first foreign venture. To date, over 400 Brazilian companies have done JV’s or outright purchases of Argentine companies in sectors ranging from cement to beverages to auto parts manufacturing. Now many olhos brasileiros are focusing on opportunities in the banking sectors. The analysts and professors interviewed by LBC describe the phenomenon of “follow sourcing” as a logical pattern where Brazilian banks are increasingly following their best corporate clients into Argentina to fund the growth and expansion of their Argentina subsidiaries. University of Palermo professor Rodolfo Rapán puts the importance of Brazil’s FDI in context: “Since 2003, an average of about $4 billion in foreign funds has flowed into Argentina each year, and 40 percent of those funds have come from Brazil.”  (Full article in English)

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