Uruguay targets European buyers: ThePost.ie


TCH Archives > Sunday Business Post > 2007/06/10 > Uruguay targets European buyers

Uruguay targets European buyers
Sunday, June 10, 2007 -
Already a favourite with wealthy South Americans, Uruguay is starting to attract European attention, writes Cathy Hawker.

America has the Hamptons, Europe has the French Riviera and South America has Punta del Este, a glamorous beachfront playground for the beautiful and the famous.

Uruguay might not be the best known of South American countries for Irish property buyers, but its location, squeezed between the heavily populated giants of Argentina and Brazil, and its natural beauty make this the continent’s favourite celebrity hideaway.

South American markets have been attracting plenty of interest from investors lately.

Brazil and Argentina are opening their doors to buyers from across America and Europe, and even Venezuela and Chile have targeted European buyers. But Uruguay - South America’s second smallest independent state - hasn’t had much exposure, which is surprising because it has rather a lot of positive points.

At 176,000 square kilometres it is well over twice the size of Ireland with a population of just 3.5 million. There is a well educated, stable middle class and over 90 per cent of the population are of European descent. Uruguayans are also renowned for their laid-back approach to life.

The country borders Brazil to the north-east and Argentina to the west, while the east and south coasts face out to the Atlantic Ocean and the Rio de la Plata. On a peninsula at this southern point where the sea and the river meet are the 20 kilometre white sands of densely-built Punta del Este, 140 kilometres east of the capital Montevideo. Fewer than 10,000 people live here year round, but in their summer, December to February, the population explodes to over half a million.

‘‘People come from all over South America to Punta del Este to holiday. It’s the place to be, the most popular holiday destination for South Americans,” said Jorge Iglesias of Spanish developers IA Group International.

‘‘This area is beautiful, with good planning restrictions to prevent overbuilding. It is also safe and has a good international mix of visitors. The Brazilians come here with all their jewels because it is so safe, but you’ll also hear Spanish, English and French voices on the beach.”

The IA Group is marketing 60 individual plots, known as chacras, of up to 15,000 square metres at Laguna Estates, where owners can design and build their own luxury home.

Set 500 metres from the beach at Playa Manantiales and 15 kilometres north-east of the high rises of Punta del Este, low-level Laguna Estates sits in 95 hectares of lush land with views over lakes to the Atlantic.

The IA Group will provide full architectural, design and landscaping services and project manage the building of the houses.

‘‘We put four plots on the market six months ago and sold three immediately,” said Iglesias. ‘‘We knew we had a special product in a prime location. Our buyers will be people looking to be part of this fantastic area but who also want privacy and a unique lifestyle property.”

Iglesias owns a house on the resort and as the nephew of Spanish singer Julio Iglesias he is helping to keep the glamour quota at Laguna Estates high.

London property heir Justin Portman and his supermodel wife Natalia Vodianova have bought into the project, while novelist Martin Amis and Alan Faena, the property tycoon largely responsible for the revival of the dock area of Buenos Aires and the creator of Faena Hotel + Universe, both own property nearby.

Facilities at Laguna Estates for these high flyers include a heliport, 24-hour security, a personalised wine club and a comprehensive concierge service. Owners will have access to tennis, a spa and a beach club at the nearby Mantra Hotel, a Leading Small Hotel of the World member, as well as access to golf.

Watersports are available on the Laguna at the heart of the resort, while the stretch of glorious beaches give owners the choice of being at the heart of throbbing Punta del Este and the villages along the coast, or on the estate and away from the crowds.

Prices for all this beauty and luxury are $35 to $55 (€26-€41) per square metre for the plots and $750 (€558) per square metre for construction - so a 500 square metre house on a 10,000 square metre plot would cost from $700,000 (€521,000).

‘ ‘These are premium prices,” said Jorge Iglesias. ‘‘We are 30 to 60 per cent higher than our competition, but Laguna Estates is very special. These properties will be luxuriously finished on large plots, some only 500 metres from the beach.”

Elsewhere on the peninsula T5 Estates, also from Spain, is selling Swan Lake Forest where plots of around 5,000 square metres cost from $150,000 with a choice of three styles of villa.

‘‘Prices around Punta del Este have risen over 25 per cent in the last year,” said Andrew George of T5 Estates. ‘‘If investors buy well they could achieve an annual rental yield of 20 to 25 per cent.”

Paul Irvine of up-market travel and property search company Dehouche believes this area has potential, specifically north-east of Punta del Este from La Barra to Punta del Diablo, where white sand, innovative architecture and super cool people are creating a real buzz.

‘‘Uruguay is of particular interest to our clients as prices are still low yet the market is rising consistently,” he said.

‘‘What’s particularly exciting in Uruguay is that there is no income tax or capital gains tax for individuals, only businesses. With the current dollar rate we are seeing a significant increase in demand for Uruguay from our European clients.”

Iglesias is confident that Europeans will understand the appeal of the area when the resort is fully launched in Europe later this year. ‘‘Europeans feel very at home here,” he said.’

‘‘Already we have four potential Irish buyers who are flying down to see the resort.

‘‘It’s beautiful and safe and is waiting to be discovered by a wider audience. This is our Ibiza and Cote d’Azur all in one place.”