The average price of Uruguay farmland has surged 800% over the past decade, according to new numbers from the Uruguay Ministry of Livestock, Agriculture and Fishing.
“Since 2002, the average price of Uruguay land has multiplied by nine, rising from US$385 per hectare to US$3,477 last year. In the past 13 years, over 7.1 million hectares of Uruguay farmland worth US$9.06 billion changed hands,” writes Pablo Antunez of El Pais.
Focusing on more recent trends, the Ministry says Uruguay farmland appreciated 9% on average in 2012, while the number of farm sales was down 10% and the total area of farmland sold was off 5%, reflecting the fact that fewer farms are on the market today compared with a decade or even two years ago.
Last year, the Uruguay departments of Paysandu, Tacuarembo and Treinta y Tres accounted for the most farmland sold with 50,000 hectares exchanged worth $225 million. The departments registering the highest average prices paid for farmland were Colonia ($6,272) and Rio Negro ($6,060), two of the regions with the highest CONEAT values in Uruguay.
Another trend that emerged in the second half of 2012 was the increase in the number of investors buying small farms. The sale of Uruguay farms in the 10 to 100 hectare range accounted for over two-thirds (68%) of all farm transactions between July and December.
Looking forward, Antunez says local demand will continue to be focused on quality pieces of land with the right soil and water conditions for planting crops with soybeans continuing to lead the Uruguay agriboom. (Full Story in Spanish)
For more information about South America land investments, complete the form below.