Uruguay Coastal Properties

I’ve talked about the effect of the crashing dollar for some time now. In some cases, at least in theory, real estate prices should be flat or decreasing in relation to strong currencies. (Property prices are in US dollars.)

What’s happening with the US dollar is a full-fledged economic catastrophe in the making. As always, there are totally unexpected twists and turns with any economic crisis. Here’s an example:

We have an exclusive listing for an Ocean View Estate here in Piriapolis. The owner of the property is European and strong currencies (Euro and Swiss Francs) were used to build this mansion. The owner’s response for the dollar debacle was to raise the price of the property to partially compensate for the Buck’s decline. The price for the estate was increased last week from $2,260,000 to $2,460,000 - about 9%.

This is not a lot of money in this price range, but it is interesting. By the way, other owners of properties that were financed by strong currencies have also moved the price peg a bit higher.

The question is, will these price increases stick?

Stay Tuned!

Steve Bowman

One thing we forgot to mention in the previous post; the owner will provide some short term financing.

As always, the price of $2.26m is negotiable. However, for the price, there is nothing comparable in Uruguay and very little elsewhere for that mater.

If you haven’t had a chance to check it out, here’s the link for the View Estate.

Stay Tuned!

We’ve had a lot of calls and email about the Pan Azucar development here in Piriapolis. The following is the text of a client email you may find interesting and typical of the questions we are getting:

“I have an offer for a ‘free’ condo near Montevideo for a week’s stay while traveling to Uruguay. Can you verify the legitimacy of this business or give me any useful information. I would appreciate any input or advice.
Thanks in advance”

Here’s my response:

I don’t know the developer, yet. There is in fact some site work going on at Pan Azucar.

I know this group’s attorney. He claims there are 7 pre-sales. It’s a syndicate of 14 Americans that are developing the project. Personally, I wouldn’t buy anything until there are some buildings up.

Stay in touch….if this project comes off as planned, it’ll be quite nice and transform Piriapolis.

Thanks,

Steve

PS: There has been a ton of activity for this post! Here’s the link for the listing on our site Sugar Loaf.

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.

Pricing and the plot plan for the home building lots are now on the Land Page found on the right side bar.

Many of these lots have commanding 180 degree views, including some of the less inexpensive in the $70,000 range. The expensive lots, at the in the $100,00o plus range, have 220 degree views. If you’re not familiar with this hill, Cerro San Antonio, it’s the most exclusive area in the town.

We have a couple of really nice rentals we’d like you to know about.

Both of these units have fantastic views. One is on the Rambla and the other is perched on a hillside above the Marina (Cerro San Antonio.) The unit above the Marina has the best view in Piriapolis at this time.

To view them, go to the Piriapolis Page found on the right sidebar.

The big news right now is big plots of view and beachfront property available near Piriapolis. We have parcels of 60 hectares and 24 hectares. We are also in the process of finalizing a sales agreement for a 10,000 square meter tract of actual beachfront that has a preliminary design/budget for a hotel and about 40 bungalows.

We also have several residential lots on Cerro San Antonio. All of these plots have stunning high ground views of the ocean and Rio Plata. Please ask for maps and prices if you’re interested in these great home sites.

The owner of this very nice plot of land has informed me the price is “negotiable.” By this he means, “a sale in the next year is good.” My interpretation is that there’s some flexibility in the price, but offers that are dramatically lower than the asking price might not fly.

This is a great rural piece of property for those wanting views of the Sierria and Ocean.

Bring your offers!

Here’s the link: Sierria de la Animas

There is a listing for a 4 bedroom, 3 bath house (see Piriapolis, under Property for Sale, right sidebar) for $420,000.

I’m mentioning this property, not because it’s a screaming deal, but because it defines High-End in Piriapolis. In the Punta del Este area, in good view/beach access neighborhoods, the price would be 50% - 100% more. What we’re seeing, with Americans in particular, could care less about La Punta’s tonnie international resort image and are looking for stunning views/beach for good prices……which Piriapolis has.

Admittedly, the town is a little worn and on the tacky side, but I can remember when the area just south of Santa Barbara was “tacky.”

Stunning view property, on the cheap, always draws people. The situation will change in Piriapolis, it’s a mater of time.

If you find the 10,000 square meter plot of land which is actually on the beach some what appealing, this should peak your interest. (Please see Land under Property for Sale on the right sidebar.)

Currently, the height restriction is 7 meters. The city is considering changing the height limitation to 21 meters. This takes this piece of property from the OK status to something much more compelling. This mirrors a similar move in Punta del Este to increase density, encourage development and investment. If it happens, without a doubt, this is an interesting piece of prime land in Piriapolis.

Stay Tuned!