Uruguay’s real estate agents expect flood of purchasers from Argentina once borders reopen

RIO DE JANEIRO, BRAZIL – Not only ordinary Argentines are turning their backs on their country. Families with money are also looking for a new start, and neighboring Uruguay is the first to benefit. They speak the same language, have the same mentality, and there is legal security.

Uruguay plans to reopen its borders in September to fully vaccinated foreigners. The news was celebrated not only by the tourism industry but also by major developers and real estate agents on the other side of the Rio Plata.

The announcement has triggered a boom in inquiries, and a flood of operations led by Argentines is expected in the next few months.

“We are receiving initial inquiries. In two days, we have received more calls than in the last five weeks. We have 40 reservation tickets from Argentines who will come to sign contracts. These clients will certainly decide to buy another property when they arrive in the country,” said Teófilo Banchero, CEO of developer Banchero Real Estate to Apertura newspaper.

The developer is currently marketing a US$10.5 million project in Montevideo. “In just two weeks, we were able to market 20% of the entire building.” he acknowledged.

For Uruguayan developers, Argentines are major players. Last year, 15% of the total units sold were purchased by them. However, as a result of the pandemic and Uruguayan entry restrictions, their numbers have temporarily declined.

Currently, the capital Montevideo is the main attraction for investors. Apartments represent a good investment opportunity, with affordable prices and rental yields between 5 and 6% in dollars.

In the Uruguayan capital, entry prices are lower, allowing investors to protect their liquidity if they later need the money they invested. “This place has a constant income, unlike Punta del Este, which depends more on tourism,” adds Fabián Kopel, director of Kopel Sánchez.

“We recommend that Uruguayans invest in real estate now because we expect a real flood of purchases that will drive up prices, logically due to the increase in demand from foreigners,” Kopel concludes.

In Montevideo’s upscale neighborhood Carrasco, however, prices are higher. A studio apartment costs at least US$100,000, and a two-bedroom apartment has a base of US$150,000.

“We have a lot of inquiries from investors who want to put their money in Uruguay because of the legal security, but most of those who call us today want to change their lives and settle in the country,” Kopel says.

Those who want to live in Uruguay must have US$400,000 to apply for a 10-year tax exemption. “The units do not have to be finished, and there is no obligation to pay all the money upfront. Just by signing a commitment, you can already buy a house,” he says.

This point is important because “someone who comes can sign a commitment, pay 20% downpayment on the spot and start the fiscal stay immediately. In this way, it is enough to come from abroad with only US$100,000. The buyer has 3 years to pay the balance,” he concludes.

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