Why interest from Argentina in farms and farmland in Uruguay is growing

RIO DE JANEIRO, BRAZIL – During the pandemic, the sale of real estate in Uruguay to Argentines increased, as well as the sale of farms and land for agricultural use.

The various export restrictions, exacerbated last month by the new barriers to the export of corn, have caused unease among farmers looking for a way out of Argentina, and the route across the river seems to be the easiest.

Read also: Check out our coverage on Uruguay

“As for land, the number of inquiries from Argentines has increased by 70%. Most people are looking for land between 300 and 1,500 hectares, 90% of them with agricultural preferences,” Baltasar Urrestarazu, director of Casas en el Este, a portal for finding real estate in Uruguay, tells El Cronista.

According to the professional, in the last year and a half, “the demand for farms that are no longer as productive or used for land or recreational purposes has increased by 50%,” he notes.

“The search is taking place in the area of La Valleja and Maldonado, where there are marine ponds. The number of requests, and therefore the number of operations carried out, has increased significantly, although on a smaller scale,” he concludes.

WHY THERE IS MORE INTEREST

A little more than ten days ago, the Argentine Ministry of Agriculture changed the handling of the sale of grain abroad, after the imposition substantial obstacles to the export of meat to promote domestic consumption led to an even more significant increase in inquiries in Uruguay.

“Today, we are seeing substantial operations from Argentines seeking land and farms not only for livestock but now for agricultural use,” said Roberto Vivaldo, president of Century 21 in Argentina, which handles the Uruguayan market.

“There is a lot of demand for this market because of the tax incentives Uruguay has today, which makes it attractive to foreigners,” agreed Sandra Sofio of the Engel Volsker real estate firm in Punta del Este.

Although all the professionals interviewed agree that the number of operations is increasing, there are more inquiries than actual operations.

According to Teofilo Banchero, CEO of Banchero Real Estate, there are more inquiries than offers today. “The biggest movement is mainly in the agricultural area of Colonia. Right now, there are very few transactions,” he explains. “Although the number of inquiries has been increasing for months, the level of transactions is still very low,” stresses the professional, who believes that from November, when the entry of foreigners with complete vaccination plans will be allowed, many transactions will take place.

Those who want to enter Uruguay must present a PCR for a maximum of 72 hours, which must be repeated on the seventh day. An online declaration must also be signed to enter.

Since September, foreign owners have been allowed to enter the country, which has made the market more dynamic for foreigners.

PRICES
Colonia is one of the most sought-after places by Argentines, mainly because of its proximity to Buenos Aires.

According to the Uruguayan website InfoCasas, there are options for every budget. For example, an uncultivated field of one hectare has a value of US$75,000.

A farm of more than 13 hectares with a small three-bedroom house, also in Colonia, has an asking price of US$160,000.

Larger farms with nearly 50 acres can fetch as much as US$1 million. “There is an audience for every type of property; Argentines tend to favor small and medium-sized farms,” they said.