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)

Well-known ferry operator Buquebus takes to the friendly skies between BA & Punta later this week.

With Holy Week underway, many Argentines are preparing for one last family vacation on the beaches of Uruguay. On the receiving end of the tourist influx and revenue from Argentina and Brazil, Uruguay designates this week as Tourism Week. Seizing the moment and simultaneously injecting some needed competition in the short-haul arena, Buquebus is launching direct air service from Buenos Aires to Punta del Este. According to La Nación, the well-known ferry and bus operator plans to offer three flights daily from Aeroparque Jorge Newberry to Punta’s Laguna del Sauce International Airport aboard a fleet of new ATR 72-500s. Buquebus has already purchased two of the planes, two more will be acquired before year-end and the company retains the option to buy a fifth and sixth aircraft in 2011. The fleet acquisitions coincide with the planned addition of new Buquebus routes from Punta del Este to Porto Alegre (Brazil), Ezeiza International Airport and Salto, Uruguay. When asked about tickets, Buquebus CEO Juan Patricio López said they will be competitively priced with occasional promotions “to stimulate travel among Argentines who have a house in Punta del Este and want to fly more frequently.” In other BA airline news, Texas-based American Airlines announced a third seasonal flight from Miami to Buenos Aires. “Argentina offers our customers looking for a South American vacation a rich and unique cultural experience,” said American SVP Peter Dolara. “Known for being an important financial center, Buenos Aires is also a popular destination for our business travelers.” The third Miami-Ezeiza flight will operate from July 2 to August 23. (Buquebus Online, On Twitter)

Foreign investment in Uruguay rose over 400% from 2004 to 2008. Much of it came from the U.S.

That’s how Josh Spero describes Uruguay for readers of Spear’s Wealth Management Survey. In the current Tax & Trust section, Spero offers one of the most sophisticated and accurate depictions of  the “Switzerland of South America” and “Argentina’s kid brother.” The narrative begins with a description of Uruguay and Switzerland’s shared advantages for foreign investors: Banking secrecy laws? Check. Favorable tax regime? Check. But the present-day similarities end there considering that Switzerland is knee-deep in recession while Uruguay emerged relatively unscathed having already beefed up its banking system and capital ratios almost a decade ago. Proof of confidence is evident in the country’s direct foreign investment numbers: From $397 million in 2004 to $2.2 billion in 2008 with Spain, Argentina and the United States accounting for the bulk of the funds flowing in. “Part of what has been driving this foreign investment,” Spero says, “is Uruguay’s seductive taxation rules, both for individuals and corporations.” And after spending time in the capital city of Montevideo, the financial reporter is left with one undeniable takeaway: “There are opportunities for entrepreneurs everywhere you turn in Uruguay.” Spero lists commercial real estate development, telecoms and land for “property, pleasure and space” as three of the most attractive investment opportunities. For more information about Uruguay and investment opportunities along this portion of The Tango Coast, visit our archives or download the latest edition of InvestBA Privada.

Shabby Chic: A renovated estancia near Colonia, Uruguay (Source: Lucy Gilmore)

“Summertime…and the living is easy.” That’s what The Guardian’s Lucy Gilmore discovered during her recent trip to Uruguay. Gilmore visited some of the hidden gems of the Tango Coast including the port town of Colonia del Sacramento and some beautiful renovated estancias just a few kilometers inland. The estancias, which date back to the 1880’s, are finding new life as “designer farms” as young Argentine professionals, perhaps seeking a better work/life balance, are opting for Uruguay’s bucolic charms. One of the architects Gillmore stayed with completely renovated his estancia which she describes as “whitewashed and low-lying, with five bedrooms, the style is shabby chic: old shutters, wooden floors, and beds draped with muslin canopies.” I myself am just back from end of the year vacations in Uruguay which ranged from the natural beauty of Colonia to the noise and nightlife of Punta del Este. Like Miss Gilmore, I find myself gravitating more toward the peace and tranquility of the former. The coastline drive from Piriápolis west to Colonia is beautiful (Photo), and the terrain looks more like Central Virginia than South America. I have another Argentine friend, Andrés, who takes his family to their WiFi-enabled estancia in Colonia for the entire month of January. As a web designer, he doesn’t miss a beat, and the close proximity to Buenos Aires makes commuting via Buquebus a cinch. With more stories like this and last year’s NuWire Investor piece, Uruguay will continue to attract more foreign property investors in 2010. (Full Article)

Cows outnumber people over 3:1 in Uruguay and grass-fed beef is the norm. (Photo: Eduardo Amorim)

An American Express print campaign several years back encouraged cardholders to travel abroad with this culinary tagline, “Only 4 restaurants in the world can prepare the perfect steak…3 of them are in Argentina.” Perhaps the only thing bigger than the country’s reputation for fine beef is the sheer girth of the cattle that roam the fertile Pampas. But a funny thing happened on the road to recovery from the ‘02 financial crisis, Alexei Barrionuevo tells New York Times readers: “Argentina, in some ways, is a victim of its own success. Exports rose after a steep devaluation of the Argentine peso in 2002 made the country’s beef more competitive globally. But supplies began to dry up for Argentine consumers — who eat more beef per person than any others in the world, industry officials say — causing prices to rise and stoking social discontent.” Further meddling by former President Kirchner and recent drought conditions have forced many farmers to focus more efforts on soybean cultivation. Advantage Uruguay. The neighboring country of 3.8 million is growing beef exports and gaining visibility on the world stage, thanks in part to an aggressive marketing campaign by INAC, the National Beef Institute. InvestBA remains highly bullish on this beautiful country which offers foreign investors unique investment opportunities, tax advantages, natural beauty in both the interior and along the Tango Coast, and—together with Argentina—the highest quality of life of any countries in Latin America. (Full NYTimes article)

The beautiful Mar del Plata Golf Club is one of several courses awaiting visitors to the Tango Coast.

With only three weeks before the first day of summer, La Nación surveys hotel owners and real estate brokers regarding bookings and optimism for the upcoming tourist season in Mar del Plata, Pinamar and Cariló. Reservations are up and optimism is high according to the article, thanks in part to the relative strength of the Brazilian real making Argentina’s beaches more affordable destinations for Argentines and Brazilians alike. The City of Mar del Plata is planning over 100 concerts and cultural events during the upcoming summer season, many of them free to the public. Just up the coast in Pinamar, a popular destination for the upper-middle class, hoteliers and property owners are trying to keep prices around the same level as 2008, and in Cariló, a destination La Nación describes as “untouched” by the recent economic slowdown, the trend among visitors is moving away from short-term rentals and toward “the purchase of homes, as well as new condos along the coastline.” And over in Punta del Este, Uruguay’s premier destination for the rich and famous, La Nación says confidence is high with brokers recommending property owners hold prices at 2008 levels to offset the 17% drop in the dollar’s value versus the Uruguayan Peso in 2009.

Aerial view of debt-laden Dubai stands in stark contrast to the natural beauty of developments like this one in charming Cariló on the Tango Coast.

World financial markets were rocked yesterday when news surfaced that Dubai World, the Dubai corporation responsible for some of the UAE’s most lavish developments, was unable to meet interest payments on the over $80 billion in debt it holds. According to The Times, “Dubai World began the panic on Wednesday by demanding a standstill on its interest payments (and) worsened the mood when it postponed a teleconference for its bond holders, saying the phone lines were overwhelmed.” So what would you expect to find today on the front page of the UAE’s leading English-language newspaper? A probing analysis of Dubai World’s leverage? A soul-searching essay questioning why anyone would want to live in overpriced, garish desert casino castles like this? No on both. How about a glowing review of Buenos Aires? “With its beautiful buildings, lively social life and colourful history, it’s no wonder that Buenos Aires is fast becoming South America’s favourite capital,” writes Julianna Barnaby in today’s Khaleej Times and, she concludes, “one visit to Buenos Aires is definitely not enough.” Of course Dubai will be fine, because Abu Dhabi won’t allow it to fail, but the case for investing in waterfront real estate is much more compelling in Argentina than Dubai in terms of pricing, natural surroundings, building design and cultural similarities. For more information on coastal opportunities in Argentina and Uruguay, e-mail in@investba.com

The 2009 Argentina Real Estate Expo concluded yesterday after a three-day run in Buenos Aires. This is the third year La Nación has put on the event, and the number of attendees, exhibitors and sponsors continues to grow annually. As expected, there were several major developers and brokers on hand promoting a variety of projects including mid and high-rise condos in Buenos Aires, gated communities with golf courses and polo fields in the Province of Buenos Aires and luxury waterfront developments along the Tango Coast including Mar del Plata and Punta del Este.

E-mail re@investba.com for more information about individual projects presented at this year’s Expo. If you were unable to attend this year’s event, please enjoy the YouTube video above.

Beachside view of beautiful Punta del Este, Uruguay - Photograph by alineartwork on Flickr

NuWire Investor pulls back the poolside cabana curtains and lets foreign investors in on a South American secret: Uruguay Real Estate, Why Its The Perfect Location for Expatriates. NuWire first describes Punta del Este’s “affordable real estate, a remarkably high standard of living, and a party season each summer that transforms the town into a prime spot for South America’s rich and famous,” then shares the personal travelogue of DailyWealth Editor Steve Sjuggerud. The U.S.-based investor explains how banking and tax laws have helped make Uruguay the second-richest country in Latin America. While traveling around Punta del Este, Sjuggerud finds affordable schools, housekeepers, country clubs and several seaside cottages for under $200,000. He says it’s only a matter of time before more American, Canadian and European buyers begin to discover this gem on The Tango Coast: “In short, Punta del Este is the perfect location for expatriates. It’s cheap, easy to reach, and the quality of life is unbeatable, even in America. Best of all, there’s going to be a property boom here as money flees from the bankrupt governments in America and Europe.” Indeed.

An aerial view of Puerto Madero. The 3rd Annual Salón del Mercado Inmobiliario begins today in BA.

Alas, the waiting is over. The Salón del Mercado Inmobiliario, one of the largest real estate Expos in Latin America, kicks off today in Buenos Aires and runs through Thursday. In the adjacent video, Adriana Anzillotti, Properties editor for La Nación gives an overview of the 3-day event and tells attendees what they can expect: “The important date has finally arrived for La Nación, for real estate and for the public. We have the Expo and we have the Guest Speakers like Stan Greenberg, Eduardo Constantini and Marcelo Argüelles. Some very relevant names are going to be there as panelists, they’re going to share their knowledge and, of course, they will help us reflect on recent developments. The focus of the Expo is real estate, everything that has to with the construction industry.” Stay tuned. More images and videos from the Expo will be uploaded as the week unfolds. It’s a big week in BA, as the World Business Forum is underway across town. Several people are blogging live from the event, and you can follow their comments on the World Business Forum Blogger’s Hub.