“The demand and the market remain firm. There hasn’t been a drop in rental rates nor a decrease in sales prices,” is the lead quote in today’s analysis of the Montevideo rental market in El Observador.
As usual, the typical January/February slowdown in Uruguay rental market activity among families and working professionals was offset by college students in the interior looking for rental properties in Montevideo, a pattern very similar to what occurs in Buenos Aires during the first bimestre of the year.
“Rental price adjustments are keeping pace with inflation. Rental contracts are being renewed around 10% above the previous year’s rental rate,” one market analyst tells El Observador adding, “there is a clear housing deficit, although (he) considers the market to be stable and adds ‘construction costs measured in dollars keep going up and dollar-based inflation in this sector is a factor.’ ”
“Even though the Montevideo rental market suffered a slowdown in activity during 2012, there are local expectations that 2013 is going to be a better year, a phenomenon similar to what happened between 2009 and 2010. Real estate experts believe real estate prices will remain firm during the entire year,” concludes the author. (Full Story in Spanish)
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