MercoPress. South Atlantic News Agency

Real estate booms in Uruguay with Argentine buyers

Argentines used to look for property in summer Punta del Este; now they prefer Montevideo

As soon as Uruguay reopened its borders to Argentines owning property in the country, real estate purchases have tripled only in the months of October and November, it was reported.

Montevideo's real estate companies registered the same amount (or more) of transactions with Argentine buyers than in an entire pre-pandemic year, according to the Buenos Aires outlet El Cronista.

“Between October and November, we sold almost the same as for a year,” a Montevideo realtor was quoted by El Cronista as saying.

According to real estate consultant Moebius, purchases “went from 10 to almost 30 per month.” These operations were worth “around US $ 100 million,” Moebius' Gonzalo Martínez Vargas explained.

During pandemic restrictions, the real estate market did suffer the consequences: “People, when buying a property, want to see: from the conditions of the apartments and the location to the progress of the work,” says Daniel Zaindestat, owner of the real estate company Zmart, which has been operating with Argentine buyers for over 18 years.

“In a year and a half, from the pandemic to October 2021, we sold just two properties. Between then and November, we have already closed seven operations,” Zaindestat explained. He added that before COVID-19 “there were, on average, 10 operations with Argentine buyers per year.”

The realtor said buyers asked about a residence tax, meaning they intended to settle in the country. It also shows in a shift of choices from Punta del Este, a beach resort most suitable for vacation plans, to Montevideo, where people look for homes, but also as an investment.

“A property under construction is 20% below the value of the same unit when” finished, Martínez Vargas said. He added that 80% of the investment can be retrieved through a lease in 10 years. “And, obviously, the sale value of the property after a couple of years increases, by at least 10%.” (Source: El Cronista)