Like Costa Rica, and Panama before it, Uruguay is on the verge of a real estate boom. Property prices have been rising at a steady pace, and the market has not suffered from the bubble-effect. Economic growth has been strong over the past several years, averaging 7.84% since 2004.
The economic downturn in Argentina in 2002 created a devaluation of real estate prices in both Argentina and Uruguay. At that time, Uruguay’s economy was closely tied to Argentina, but not anymore. Uruguay’s economy has recovered, but the real estate opportunities remain. North Americans, Europeans, and South American’s are coming to Uruguay in search of affordable prices, a safe destination, and a high standard of living.
Punta del Este has long been the chic destination of wealthy South Americans, and prices are already at a premium.
The area where Sugar Loaf is located is much more interesting in terms of real estate investment and potential for capital growth. Sugar Loaf is only 20 minutes west of Punta del Este and other key locations. Prices are favorable, and since the project began a couple of years ago, property in the area has gone up by 40%. As the project progresses, it is anticipated that prices will continue to rise sharply over the next several years.The earlier you invest, the higher capital appreciation you can expect on the investment.