Uruguay Coastal Properties

Here’s a question from a reader I found interesting.

Dave wrote:
“I found your website through International Living while I was surfing for real estate in Uruguay. I notice that you also advertise the “Sugar Bread” development. Being from Canada I found that the prices seem a little steep. Is it worth looking at that development (with the possibility of rental income) or would I be better off looking somewhere else?” Thanks.

Dave-

By Piriapolis standards, the Pan Azucar project is expensive. What I can tell you, is there have been 7 pre sales. Here’s my take on it.

First of all, I don’t feel rental income on the Coast is significant. If that’s a major consideration, I’d look elsewhere. However, high end luxury units do have a better rent profile than less expensive places, at least that’s the way it is in Punta del Este. I suspect Pan Azucar will play out the same way.

As far as the relatively expensive part, I feel Piriapolis is undervalued compared with the only other high ground water view location in the country, Punta Ballena. If this development is successful, it will change the whole center of gravity for the Piriapolis area. I suppose this might lead to a bit of appreciation.

This entry was posted on Friday, January 4th, 2008 at 1:15 pm and is filed under Property Update, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.