Monday, August 08, 2011
Dear Reader,
Uruguay’s real estate market has surged ahead in the last two years. While most overseas news reports focused on price rises in Punta del Este, the country’s capital, Montevideo, posted strong growth during that same period. In 2010, apartment prices rose 22% in Montevideo. House prices increased by 17%.
Punta Carretas and Pocitos, two of the most popular residential neighborhoods, saw the sharpest price increases. Punta Carretas now ranks as Montevideo’s most expensive neighborhood. You’ll pay twice the price for an apartment here compared to a similar apartment in Centro.
That’s because city center locations like Centro don’t appeal to middle-class locals or young professionals. They prefer to live in the suburbs. But for overseas buyers looking for a second home in a city location, Centro makes a lot of sense.
For starters, it’s right in the heart of the city. You don’t need a car. You can walk to restaurants, sidewalk cafes, bars, and clubs. Supermarkets offer both online shopping and home delivery. The city boasts good hospitals and medical clinics. Bookstores, theaters, cinemas, art galleries, and markets…they’re all on your doorstep. You can jog, rollerblade or cycle on the oceanfront boardwalk.
Thanks to low fares, you can catch a taxi if you don’t feel like walking. And the bus network operating from the city’s central terminal covers most of the country, as well as offering routes to parts of Argentina and Brazil. Again, it’s low-cost. The international airport is a short trip outside Montevideo, and well-served by frequent bus connections.
Grand historic buildings grace most of the streets in Centro. Older buildings come with beautiful original features. You’ll see delicate plasterwork ceilings and moldings, ornate tile floors, stained glass windows and carved wood doors.
These features don’t seem to appeal to local buyers. They prefer a more modern minimalist style. But if you’ve ever priced historic properties in European cities like Paris, you’ll realize that these apartments represent good value.
Locals who want to rent in the city center normally want small apartments. So, these bigger historic apartments often rent as offices rather than residential space. They can generate good rental yields.
A local broker we work with, Patricia Turner, just sent me details of a historic apartment for sale in Centro. It’s got a great central location on a main square, Plaza Cagancha. Built in 1890, it covers 145 square meters (1560 square feet), with three bedrooms, one bathroom, and an additional bathroom in the maid’s quarters (which you could use as a study or office). Two balconies in the living room overlook the plaza. The asking price? The owner just lowered it…to $180,000. She’s found an apartment in the neighborhood she wants to move to, and would like a quick sale.
More retirees and second-home buyers are considering Uruguay as a second home destination. I’m sure it’s only a matter of time before some start snapping up Montevideo’s historic apartments. It’s easy to see the opportunity in these under-appreciated, under-valued properties.
Contact Patricia Turner here to find out more about the Centro apartment for sale.
Margaret Summerfield
P.S. If you’re looking for something a little different in Montevideo, let Patricia know, and she’ll send you some other listings.
Posted Under:
uruguay, appreciation potential, opportunities, real estate opportunities
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