Uruguay Coastal Properties

In addition to a price reduction of over $500,000 on this luxury real estate, there’s also a currency play if you have just about anything but dollars.

The luxury property is off about 20% from last year at this time based on the dollar’s fall. This view estate was a excellent value one year ago, today it’s in the bargain bin on a currency adjusted basis.

Do yourself a favor and check this estate out.

When it comes to luxury real estate in Uruguay, we’ll spare you the gushing superlatives. Let’s just say this luxury property has it all. There are two homes on the 17.5 hectare site. The main house has over 500 square meters and a guest or attendant home of about 100 square meters.

The owner needs to move back to Europe and the price has been reduced to 1.9M from 2.4 million.

Do your self two favors. First, click this link: Luxury Estate. And then go visit the property…..without question you will see the best views in Uruguay and a residence second to none in this country.

This is an important consideration I left out of the last week’s article.

This post talked about the brisk lot sales at Sugar Loaf Ocean Club and Spa. I wondered when I first talked to David James about the lot sales, “Can people build whatever they want?”

I’m very happy to report the answer is NO. They are free to do as they please inside the house, but the design has to be the developers. In my opinion, this is a very good thing; the luxury designs are attractive and very Local in appearance as well as the feel. I feel this requirement assures the upscale status of the project will be maintained.

I’ve seen some very upscale hoods here where people have purchased expensive lots and put trash in……go figure.

Sugar Loaf Ocean Club and Spa, Piriapolis’ luxury home development, recently released and sold out all building lots in Phase II, Armonia. This was the first time the option to buy lots without a home has been offered. Previously, the only alternative was to buy a home package which included the plot, a home design and construction.

It appears all the lots were sold in a few weeks. Based on the brisk activity, the developer decided to release another section of lots called Tranquilidad.  Tranquilidad is at higher level on the hill and the lots have even better panoramic ocean views than the ones offered at Armonia. This section of lots will be released to the public on August 1st. These lots are priced at US$59,900. Currently there is owner financing available but is due to expire on August 1st.

As far as the current status of construction on Pan Azucar, there are seven luxury homes due to be complete and delivered in December. Three more houses will start in August.

If you’re coming to town, be sure to stop by. The views range from excellent to out of this world and the designs are tasteful with distinct local, Uruguayan influence.

Last week we introduced Uruguay Property Tour, six properties cooperatively marketed by a group of developers:

Sugar Loaf Ocean Club and Spa in Piriapolis

The Alexander, Tiburon, and Blue Blue projects in Punta del Este

Laguna Tranquila in La Paloma, Rocha.

While real estate tours are not unique, the approach by this group is. In addition to visiting all six projects, included is an all-inclusive accommodation, food and entertainment package. Here are a few highlights:

- Complete 7-night, 6-day guided tour of Piriapolis, Punta del Este, La Barra, Jose Ignacio, La Pedrera and La Paloma.

- Opportunity to purchase in six luxury developments on the coast

- Full range of cultural activities from wine tasting to tango!

- Fine cuisine; handmade pastas and world-famous beef

- Personal tour-guide with all local transportation provided

- Free attorney consultation on living and investing in Uruguay

- Professional tour-guide.

Includes: Accommodations for 7 nights, all meals, tour activities and ground transportation. Does not include alcoholic beverages or cash compensation.

Whether you buy property or not, this tour promises to be a lot of fun!

For details about the itinerary, click here for Uruguay Property Tours.

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.