Uruguay Real Estate Demand Boosts Raw Land Sales

Patrick Archer average prices, foreign investment, real estate, uruguay

Raw land purchases may have slowed down in Uruguay in 2009, but they rebounded 13% in 2010, according to El Pai­s. A total of 336,000 hectares (830,274 acres) changed hands in Uruguay last year in a grand total of 2,093 land transactions.

The 13% rise in number of deals was matched by a 13% increase in the value per hectare sold, writes Pablo Antonez. The average value per hectare in 2009 was US$2,329, while the average rose to $2,633 last year. And even though the total value of land purchases rose 17% last year to US$885 million, that figure is the second-lowest in the last five years.

After two straight years of $900 million plus in land sales, Uruguay land purchases peaked in 2008 at US1.26 billion before falling to US$753 million in 2009. But the slowdown has more to do with a lack of supply than a lack of interest adds Antonez. “Even though the total sales dollar amount has pulled back, what has grown consistently is the average price per hectare from US$385 in 2002 to $2,633 in 2010, an increase of 584%.” (Full Story in Spanish)

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