The land for sale market in Uruguay during the first half of 2024 shows a positive trend. There is a significant increase in both transactions and the area sold in comparison to the previous year.
Recently, the Ministry of Livestock, Agriculture, and Fisheries (MGAP), through the Agricultural Statistics Directorate (DIEA), released its report on land sale transactions for agricultural use in Uruguay, during the first semester of the year. Based on that official information, at Escritorio Arrospide, we have elaborated an analysis of the key trends to consider when planning to buy or sell land in 2024.
In the first half of 2024, there were 746 Rural Real Estate deals for agricultural use, representing a 24% increase compared to the same period last year.
A total of more than 183,000 hectares were sold. It doubles the area sold in the first half of 2023. This surge in activity highlights the strong interest in Uruguayan land, whether for expanding agricultural activities or attracting new investors looking to tap into the rural sector’s potential.
This growth reflects the sustained demand in recent years, driven by opportunities in livestock farming, agriculture, and forestry.
The average price of land during the first half of 2024 was USD 3,910 per hectare. This maintains relative stability compared to previous years. However, the report highlights significant differences in prices depending on the region and land use.
The highest prices were recorded in Soriano (USD 8,355/hectare), Colonia (USD 7,016/hectare), and Canelones (USD 6,716/hectare). The fertile soils and high productivity potential for intensive farming and livestock operations in this regions contribute to the higher land values.
On the other hand, the lowest prices were observed in Artigas (USD 2,267/hectare), Treinta y Tres (USD 3,161/hectare), and Tacuarembó (USD 3,262/hectare), offering opportunities for investors seeking large areas at more affordable prices.
An interesting aspect of the DIEA report is the distribution of transactions by land size. While 71% of the land sales were for properties between 10 and 100 hectares, these only accounted for 10% of the total area sold. In contrast, sales involving properties larger than 2,000 hectares, which made up just 2% of the total transactions, covered nearly half of the total land sold. This represents 48% of the area and 46% of the total amount transacted.
This suggests that while there is a dynamic market for smaller land plots known as “chacras”, larger farmland properties and ranchs remain a key segment, particularly for investors interested in large-scale activities like livestock farming and grain production.
Uruguay offers a diverse range of soils and climates, supporting various agricultural activities. The report highlights that 47% of the land sold in the first half of 2024 was concentrated in Treinta y Tres, Cerro Largo, and Rivera, mostly used for livestock and forestry activities.
The rice-livestock sector also remains relevant, accounting for 32% of land sales over 1,000 hectares.
Considering that 30% of large land properties focus their explotation on livestock and forestry activities, there is a clear balance in land use across the country.
The total value of land sales reached USD 718 million, highlighting the significance of Uruguay’s rural real estate market. This level of investment confirms the interest of both local and international investors in Uruguay’s agricultural sector.
If you’re considering buying or selling land in Uruguay, it’s crucial to understand the price dynamics, soil characteristics, and demand in different regions of the country.
The rDIEA report indicates an active market with potential for further growth, especially in areas dedicated to livestock, rice, and forestry production. Demand for agricultural land continues to outpace the limited supply.
For those planning to sell land in high-demand regions like Soriano or Colonia, the current price stability represents an opportunity to maximize the value of their property.
At Escritorio Arrospide, we are experts in ranchs and land sales across the country, with over 45 years of experience in the Rural Real Estate market. We offer the knowledge and expertise you need to guide you through every step of the process, whether you’re planning to buy or sell agricultural property in Uruguay. As founding members of CUIR (Uruguayan Chamber of Rural Real Estate), we provide access to a network of serious, professional contacts to ensure successful transactions.
We highlight some exceptional land opportunities from our portfolio:
Source: MGAP, DIEA Series – Land Price Report
