Uruguay: Why investing in real estate is a number one choice
In the midst of the pandemic, it is true to say that investing and large transactions have been off the cards for most of us while we adjust to new ways of life. However, this lack of activity has prompted a market opportunity in some countries that have adjusted quickly to these changes in our lives, as well as those countries that are slowly emerging from long lockdowns into what appears to have a semblance of the normality that we once took for granted. Throughout the pandemic, Uruguay has shown itself to be a prime example, where despite having witnessed high rates of infection per one million people at points, the relative success in curbing prolonged periods of high infections in the country with a comparatively small population in the region means it presents itself as having potential for real estate investment this year.
A while ago we posted an article on our blog about how easy it is to buy a property in Uruguay, a nation with a high quality of life and initiatives intended to attract foreign investment. However, as an investor, the country and any schemes on offer are not the only factors to take into consideration when acquiring new real estate assets, the market conditions are also important. In Uruguay, the good quality of life we already mentioned comes as a consequence of success in various sectors, one of which is real estate.
In Montevideo, for example, it has been suggested that the potential annual return on rent can exceed 10%, proving the conditions are suitable for investors looking to make money in the region. As well as this, the market is open to commercial and private property investment, meaning if you move there, you can also move your business, promoting cross-border expansion and increasing the potential for generous returns on your assets.
The superb incentives also link to the housing market, as foreigners wishing to do business in United States Dollars and other foreign currency are able to do so with no trouble, making the security of your investments much higher and perhaps acting as a catalyst when you are making your decision on where to buy real estate. For this reason, regardless of the housing market situation within the nation, investment opportunities are open and those willing to take the plunge have the knock-on effect of rejuvenating dips in real estate sales.
The 2008 recession caused many issues worldwide in the housing market, seeing prices tumble and less people being able to afford to move. It was not the same story in Uruguay, however, as housing remained relatively consistent and most people who invest, buy their real estate outright, making the potential for property to devalue is lower than nations where the majority of people need a mortgage.
With people from further afield than residents of bordering nations looking to Uruguay as an investment opportunity, the potential in a post-pandemic world could be worth exploring deeper, and if the previous points have tempted you to do so, please get in touch today. At Creimerman, we thrive on assisting anyone who wishes to take themselves or their business across borders and would love it if you were to be the next.