Information on Punta del Este

Currently Punta del Este is Fast becoming a meeting point for the most well-known international personalities, trendsetters and high-level entrepreneurs. Between November and March they start looking towards this part of the world, looking for a place to stay at this special time. Punta del Este has been recognized internationally as the pearl of Latin America.

Europeans and North Americans have discovered Punta del Este. It is impossible to come here and have a wonderful time and not to want to stay and own a little bit of this incredible pearl of the Atlantic, as it has been called since 1960.

If we add the enormous difference of the local market values compared with equivalents anywhere in the world, investment in this area is interesting and attractive.

Seafront lots can still be found for USD 2.000 per square meter, maritime farms with a view for USD 4 per square meter and even apartments in intelligent buildings, also on the seafront, for USD 2.500 per square meter.

The government is aware of this and has created an incentive plan for foreign investors. There is equal treatment for national and foreign investors, no limit to the participation of foreign capitals in local corporations or restrictions to the repatriation of capital and earnings. The import and export system is free, with interesting mechanisms like temporary admission.

Investors like those who pioneered the development of Florida have detected the potential of this scenario, designing large scale enterprises and developments like Laguna Escondida in José Ignacio with an investment of USD 45 millions, where 100 luxury houses will be built on large lots, with a club house, hotel and spa.

An investment of around USD 200 million is planned for the construction of an ambitious boating and residential project in the area of Punta del Chileno (on Parada 40 of Playa Mansa). It includes a private port with 700 berths and a pier for cruise boats around which a five star hotel with private casino will be built, plus a commercial center for tourism and also apartment buildings. A call for tenders will soon be made for a convention center with capacity for 2.500 attendees.

These developments come hand-in-hand with renowned architects, like the Acqua Building by Architect Rafael Viñoly. It is located on Playa Brava and has a magnificent design with incredible individual layouts, each of them with dream 300 m2 swimming-pools, built in terraces and which seem to be suspended over the sea.

The main investments are Argentinean, but there are also a few European and Chilean ones. Last year construction permits were issued for over 9.000.000 square meters, and this year 400.000 of them were built, of which 300.000 pertain to large-scale projects and the rest to diverse works, ranging from residences to smaller buildings.

Fostering the settlement of foreign tourists is one of the aims of the Uruguayan authorities. Among other things they have submitted a petition to the World Tourism Organization for a quality certification for Punta del Este as a world tourist destination. They are working actively to promote the department of Maldonado in Europe. Both tourist operators and the government are working on this. Only 8 European, 2 Asian and 2 Latin American cities (San Martin de los Andes in Argentina, and Punta del Este) have applied for the certification, and there is a great chance that Punta del Este shall be the first to obtain it.

The plan is to attract retirees from developed countries. Miami Beach was born like this, many well-to-do retirees from colder parts invested there in a winter residence. People in Europe retire young, with good pensions and a good life expectancy. Punta del Este is an excellent choice for this segment to settle there for good, or at least spend several months a year.

The American and European markets have just discovered this paradise, its legal and banking safety, the rate of exchange which results in interesting market prices; all this announces an attractive future and a success from the point of view of tourism.

This potential market means that the forecast for the evolution of real estate is quite good, because at international level the prices are low and there is an interesting latent demand.

The price for the square meter of construction in a modern high-rise building with elevator, garage, heating etc. of around 630 square meters plus the cost of the land is fetching a price of USD 2.000 to USD 3.000 per square meter, which makes this an excellent investment.

Rentals are also a very good investment. Owners who rent their property during the summer season obtain attractive sums and they can enjoy their homes the rest of the year. The estimated financial yield is between 10 and 18% per annum.

The pleasant climate for 10 months a year guarantees the spectacular progress of this small paradise at international levels.