Real Estate - Uruguay | Statista Market Forecast

Uruguay is expected to witness a significant growth in its Real Estate market market.
By 2024, the market is projected to reach a value of US$251.20bn.
The residential sector dominates this market, with a projected volume of US$179.90bn in 2024.
Looking ahead, the market is anticipated to experience a steady annual growth rate of 3.49% from 2024 to 2029, resulting in a market volume of US$298.20bn by 2029.
In comparison to other countries, United States is expected to generate the highest value in the Real Estate market market, with an estimated worth of US$132.0tn in 2024.
Uruguay's real estate market is thriving, driven by an influx of international investors seeking luxury beachfront properties.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Uruguay has been experiencing significant growth and development in recent years.

Customer preferences: One of the key customer preferences in the Real Estate market in Uruguay is the demand for properties in prime locations, such as beachfront properties and properties in popular tourist destinations. This is driven by both local buyers and international investors who are attracted to the country's beautiful coastline and favorable climate. Additionally, there is a growing trend among customers to invest in sustainable and eco-friendly properties, reflecting the global shift towards more environmentally conscious living.

Trends in the market: One of the major trends in the Real Estate market in Uruguay is the increasing popularity of vacation rentals. With the rise of platforms like Airbnb, more property owners are opting to rent out their properties to tourists, especially during the peak tourist seasons. This trend has been fueled by the country's growing tourism industry, which has seen a steady increase in the number of international visitors in recent years. As a result, there has been a surge in demand for properties that can be used as vacation rentals, leading to a rise in property prices in popular tourist destinations. Another trend in the market is the growing interest in real estate investment funds. These funds allow investors to pool their money together to invest in a diversified portfolio of properties, providing them with an opportunity to benefit from the potential returns of the real estate market without the need for direct property ownership. This trend has gained traction in Uruguay due to the country's stable economic and political environment, making it an attractive destination for both local and international investors.

Local special circumstances: One of the unique aspects of the Real Estate market in Uruguay is the country's strong legal framework and property rights protection. Uruguay has a well-established system that guarantees property rights, providing investors with confidence and security in their real estate transactions. This has been a key factor in attracting foreign investors to the market, as they feel assured that their investments will be protected.

Underlying macroeconomic factors: The development of the Real Estate market in Uruguay can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, which has increased disposable income and purchasing power among the population. This has led to a higher demand for properties, both for personal use and investment purposes. Additionally, Uruguay has a favorable tax regime for real estate investments, with relatively low property taxes compared to other countries in the region. This has made the country an attractive destination for investors looking to minimize their tax liabilities while capitalizing on the potential returns of the real estate market. Furthermore, Uruguay has a stable political environment and a strong rule of law, which has instilled confidence among investors. The government has also implemented measures to promote foreign investment in the real estate sector, such as offering incentives and simplifying bureaucratic procedures. These factors have contributed to the growth and development of the Real Estate market in Uruguay. In conclusion, the Real Estate market in Uruguay has been experiencing significant growth and development, driven by customer preferences for prime locations and sustainable properties, as well as trends such as vacation rentals and real estate investment funds. The country's strong legal framework, favorable tax regime, stable political environment, and steady economic growth have also played a crucial role in attracting both local and international investors to the market.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.

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Real Estate - Uruguay

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