Is Uruguay South America’s next property hotspot?
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9 May 2008
Uruguay’s emerging property market is attracting a growing level of investment from locals and foreigners, according to emerging market specialist EM Concepts.
The country, which offers an excellent climate and a high standard of living, recently enlightened property ownership and tax laws, simplifying the property purchasing process. This has reportedly attracted an increasing number of private and corporate property investors in recent times.
Some of the greatest and most impressive residential developments have been constructed along the coast with the likes of the Setai and Fasano Hotel groups committing to projects.
Paul Bartlett of EM Concepts highlights the fashionable Punta Del Este, and in particular, Piriapolis, as a popular place to buy property in Uruguay, as it has been pulling the celebrity crowds for some time now.
“It is Uruguay and in particular the beautiful stretch of coastline that goes from the glamorous Punta Del Este all the way down to the historical capital city of Montevideo, that is attracting the most interest from foreign property investors,” Bartlett told Homes Overseas Online.
He adds: “There is, without a doubt, a huge proven demand for luxurious properties in the area surrounding Punta Del Este and Piriapolis. The simple fact is that there is nothing available in the high season, irrespective of quality. And this undersupply is created just by the demand from neighboring Argentineans and Brazilians.“
EM Concepts is currently offering properties for sale in a luxury off-plan resort and spa development in Uruguay, called Sugar Loaf Ocean Club & Spa. The development comeprises of 96 2,3 & 4-bedroom detached villas, with prices starting at around £100,000. However, Bartlett informs Homesoverseas.co.uk that rising construction costs will force the price of these units up to around £120,000 within the next few weeks.
EM Concepts anticipate that anyone who invests in this development now can expect to achieve an annual rental yield of above 8%, once the development is complete in 2010.