Uruguay – high growth, low prices
There was a 13% rise in the average price of apartments in Montevideo in 2007, according to Reporte Inmobiliario. Gross rental yields across Uruguay range from 6% to 9%, according to the same source. Particularly in Montevideo, the capital of Uruguay, and Punta del Este, high-end property prices are now well above their 2001 pre-devaluation level. The principal reason is that Uruguay’s economy has grown strongly over the past 4 years, with 6.5% GDP growth in 2007, 7% in 2006, 6.6% in 2005, and 11.8% in 2004.
Uruguay’s economy is very much affected by its neighbors Brazil and Argentina. While Uruguay mirrored Argentina’s economic situation before, during, and after the 2001 crisis, Uruguay did better. The Uruguayan Peso did not devalue as much, and property prices recovered sooner than in Argentina.
