Uruguay’s rural land sale market is experiencing a notable surge in 2024, attracting both international and domestic investors. Although the pace of transactions is more moderate compared to the 2000s, the significance of recent deals lies in the substantial amounts involved, the extensive land areas, and the participation of key players.
Investments in rural properties in Uruguay continue to be attractive to large capital. This year, one of the most significant transactions boosted the market: the sale of 19,877 hectares to the US investment fund Nuveen for a value of 77.3 million dollars. Nuveen, recognized as the world’s largest agricultural asset manager, acquired this land from Uruguayan businessman Luis Saps, highlighting the interest in forested areas near major industrial projects such as the UPM plant in Paso de los Toros.
The appeal of Uruguayan land is not limited to US investors. Brazilian entrepreneurs have shown a growing interest in investing in Uruguay. One evidence is the purchase of the ranch “Santa Clotilde” in the Tacuarembó department. This property, spanning 7,000 hectares and acquired for 28 million dollars, underscores the confidence of foreign investors in the potential of Uruguayan rural properties, particularly in sectors such as cattle ranching, agriculture, and rice cultivation.
Asian companies also set their sights on investing in Uruguay. Oji Holdings Corporation, a global leader in the pulp and paper industry, has acquired more than 41,000 hectares in the country, with an investment exceeding 287 million dollars. This transaction reaffirms Uruguay as a preferred destination for land acquisition, highlighting the stability and attractiveness of the Uruguayan land market.
Interviewed for the Agro supplement of Búsqueda, our managing partner, livestock broker, and professional rural real estate operator, Diego Arrospide, stated that “agricultural, forestry, livestock, and mixed-use lands are the most sought-after today, in that order, in the purchase and sale of land in Uruguay.” This demand pattern reflects the sustained interest in investing in rural properties as a safe haven for capital, both by foreign and domestic investors. Despite the limited land supply, Uruguay’s legal and institutional stability continues to be a crucial factor attracting large investors.
Large-scale transactions, especially in the northern and eastern regions of Uruguay, are being driven by market stability and the constant appreciation of land. According to the Directorate of Agricultural Statistics (DIEA), the average annual price per hectare has increased by more than 40% in the last decade, underlining the potential profitability of investing in Uruguay and reinforcing the perception that the rural land market remains a lucrative option for investors.
The rural real estate market has also seen a marked increase in activity by Argentinian and Swiss entrepreneurs, who have made significant acquisitions in various regions of the country. For example, an Argentine investor residing in Switzerland has purchased more than 24,000 hectares in Durazno and Río Negro, investing around 150 million dollars. These investments highlight the continued attractiveness of the Uruguayan market for those seeking to diversify their assets and ensure a stable return.
Uruguay’s rural land market remains fertile ground for those interested in investing in rural properties. With the participation of international and local players, the purchase and sale of land in the country remains a lucrative opportunity, backed by political stability, the constant appreciation of land, and an environment conducive to large investments. Whether for agricultural, forestry, or mixed-use purposes, Uruguayan lands offer a safe haven for investment, guaranteeing both profitability and long-term growth.
“We appreciate Agro de Búsqueda for the opportunity to highlight the benefits of investing in Uruguayan rural properties. If you’re looking for a stable and profitable investment, look no further. Discover our extensive portfolio at
https://www.escritorioarrospide.com.uy/campos-en-venta/ or let us know how we can assist you.”
Friday August 23rd, 2024 | Por Arrospide
