Time to Look at Uruguay Property Investment

With a large proportion of investor attention focusedColonia by over 50%.
on the larger and more popular Brazil, Uruguay has soAttracted to the country's low property and land prices
far barely appeared on the property investor's radar.as well as the general absence of restrictions on
However, with its highly competitive property prices,purchase by foreigners, foreign investors are already
booming economy and growing tourist sector, Uruguayactive in Uruguay with Argentinian and Spanish
has plenty to offer when it comes to propertycompanies especially prominent. Uruguayan land,
investment potential.particularly on the border regions with Argentina and
Uruguay is a wealthy country - one of the continent'sBrazil [ is top of investors' lists and the Ministry of
richest, in fact - and has managed to overcome highAgriculture estimates that approximately 25% of land
unemployment and poverty, which are present in manyin Uruguay was bought by foreigners in the period
other countries in the region. Recent economic2000 to 2006.
performance is particularly spectacular. According toApart from land purchases, foreign investment is also
the Central Bank of Uruguay, the GDP growth ratepresent in several large real estate projects such as a
during Q1 2008 reached a staggering 10.9%, provingUS$200 million complex in Ciudad de la Costa in
that Uruguay is well on target for an annual rise ofCanelones and a US$100 million in a hotel and villa
6.8%. The Central Bank predicts that GDP will increasecomplex in Punta del Este.
by a healthy 4.5% in 2009. Not only is the UruguayCompetitive property prices offer further incentive for
economy booming but unemployment is falling steadilyinvestment in Uruguay. Prices are far cheaper than
and the unemployment figure of 7.2% in May 2007those in many European countries as well as those in
represented an all-time low.neighbouring Argentina. Land prices are especially low
Uruguay is a well-established tourist destination and isand agricultural land costs around US$2,000 per
particularly popular with Argentinians and Brazilians,hectare, up to 20% less than Argentina. Homes in the
although other nationalities are rapidly discoveringcapital, Montevideo, cost between US$50 and US$80
Uruguay's many attractions. The country boasts overper square foot (US$100 for fully refurbished
650km of coastline with stunning beaches and alsoproperties) and prices for property in coastal resorts
enjoys an excellent climate. Tourism is on the increaseare similarly competitive.
and according to the Ministry of Tourism, visitorAlong with political stability, a booming economy,
numbers grew throughout the country during the first 3well-established tourism and low-entry prices, Uruguay
months of 2008 with some resorts seeing huge rises.is certainly the next country to look in your South
For example, visitor numbers to CostaAmerican investment portfolio.
Oceánica rose by over 130% and those to