Commercial Real Estate - Uruguay | Statista Market Forecast

Uruguay is witnessing a promising future for its Commercial Real Estate market market.
With projections indicating a substantial growth, the market value is expected to reach US$71.27bn in 2024.
This represents an annual growth rate of 3.46%, leading to a market volume of US$84.49bn by 2029.
Although Uruguay's market is flourishing, it is essential to consider the global landscape.
In comparison, the United States is projected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Uruguay's commercial real estate market is experiencing a surge in demand due to its stable economy and attractive investment opportunities.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Uruguay is experiencing significant growth and development due to various factors.

Customer preferences: Customers in Uruguay are increasingly seeking commercial real estate properties that offer modern amenities and flexible spaces. There is a growing demand for office spaces that can accommodate collaborative work environments and provide access to technology and connectivity. Additionally, there is a preference for commercial properties located in prime areas with easy access to transportation and amenities such as restaurants, cafes, and retail outlets.

Trends in the market: One of the key trends in the commercial real estate market in Uruguay is the increasing popularity of co-working spaces. This trend is driven by the rise of freelancers, startups, and small businesses that are looking for cost-effective and flexible office solutions. Co-working spaces provide these businesses with the opportunity to work in a professional environment without the high costs associated with traditional office spaces. This trend is expected to continue as more businesses recognize the benefits of co-working spaces. Another trend in the market is the growing interest in sustainable and green buildings. Customers are increasingly looking for commercial properties that are energy-efficient and environmentally friendly. This trend is driven by a combination of factors, including a growing awareness of environmental issues and the potential cost savings associated with energy-efficient buildings. Developers are responding to this trend by incorporating sustainable design features into their commercial real estate projects.

Local special circumstances: Uruguay has a stable political and economic environment, which makes it an attractive destination for investors. The country has a strong rule of law and a business-friendly regulatory framework, which provides investors with confidence and security. Additionally, Uruguay has a well-developed financial system and a transparent real estate market, making it easy for investors to buy and sell commercial properties.

Underlying macroeconomic factors: The commercial real estate market in Uruguay is also influenced by several macroeconomic factors. The country has experienced steady economic growth over the past decade, which has contributed to an increase in business activity and demand for commercial properties. Additionally, Uruguay has a growing middle class and a stable labor market, which has led to an increase in consumer spending and the need for retail and office spaces. Furthermore, the government of Uruguay has implemented policies to attract foreign investment, which has had a positive impact on the commercial real estate market. These policies include tax incentives, streamlined bureaucracy, and the promotion of foreign direct investment. As a result, there has been an influx of foreign investors into the commercial real estate market, driving demand and contributing to its growth. In conclusion, the commercial real estate market in Uruguay is experiencing growth and development due to customer preferences for modern and flexible spaces, trends such as the rise of co-working spaces and sustainable buildings, local special circumstances such as a stable political and economic environment, and underlying macroeconomic factors including steady economic growth and government policies to attract foreign investment.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.