More North Americans, Europeans Investing in Uruguay Farmland

Patrick Archer agribusiness, foreign investment, real estate, uruguay

The sale of farms is on the rise in Uruguay, and a new wave of investors primarily from the US and Europe are doing the buying, according to a new report in El Pai­s. Pablo Beson describes the buyer profile as individual investors drawn to agribusiness investments in Uruguay as a safe harbor for their money, a stable investment alternative and a solid income stream.

“We are talking about upper-class investors, mostly from the United States and to a lesser extent Europe, who are buying Uruguay farms between 50 hectares (124 acres) and 200 hectares (500 acres) to get involved with agriculture,” says Uruguay farm broker Sebastian Da Silva. Many of these farms are located in some of Uruguay’s most fertile departments like San Jose, Colonia and Soriano.

Da Silva describes the typical profile of today’s small farm investor in Uruguay as “high net worth investors from the United States who are looking to diversify their investment portfolios. Instead of buying another house or condominium in another part of the world for $500,000 or $1 million, they decide to invest in a farm in Uruguay. Far from being financial speculators, these investors are acquiring a second residence in Uruguay and visiting the country several times a year.”

The article cites Uruguay’s legal and political stability as positives which factor in a foreign buyer’s purchase decision, as well as the transparency of soil conditions afforded by the CONEAT Index. Double-digit annual appreciation and record lease revenue are other factors worth taking into consideration. (Full Story in Spanish)

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