Uruguay: New Real Estate Legislation
Across the shores from Argentina lies Uruguay, a country that is a property and investment hotspot. A new law has been approved that will make credit and loans more available to buyers in the middle class.
Law number 18,795 is part of project to encourage easier access to the Uruguay real estate market for middle and lower income families. The Uruguay real estate market has become more and more popular with international buyers and this interest has pushed prices up, excluding Uruguayan residents from this demographic of society. Plus, poor management of town and city planning has led to an imbalance in real estate development.
One example of this is the situation in Montevideo. Here, the national and municipal authorities wish to promote development of the central and intermediate areas of the city, discouraging investment along the east coast (Resume, Malvin, Punta Gorda, Carrasco, etc.). Currently, these areas are the focus of investment real estate and the population is dominated by the upper middle and high income families. With this new housing policy the capital of Uruguay will supposedly enjoy greater social integration.
Changing the habits of property developers is key in changing the trend seen in Montevideo. Many property developers in Uruguay tend to construct luxury properties aimed at international and Uruguayan investors. Hence, the new law brought in by National Housing Agency offers developers incentives to construct housing for middle and lower income Uruguayans. Any Uruguay real estate investment to be constructed under the new law will be available to buy or rent, but must be affordable to meet the demands of the middle-income sectors.
The bill has been developed with work and consultation from the Association of Private Promoters of Uruguayan Construction (APPCU) and their president, the architect Ariel Cagnoli; the Uruguayan Chamber of Construction (CCU) and their president, the engineer Ignacio Otegui and the Association of Real Estate Administrators (ADAPI) and their director, Edward Baldwin.
For the new bill to be successful all types of developers and construction firms will have to participate from large firms to even small-scale property developers. The idea behind the bill is also to increase activity in lesser developed and desirable areas as well as make them more accessible to less affluent buyers.
Private companies look to benefit from this change in Uruguayan property legislation. State and private finance and credit companies are going to offer buyers 25 year period mortgages with interest rates of around 6%. The government has already signed deals with two state banks (Banco Hipotecario del Uruguay and Banco de la Republica Oriental del Uruguay) and three private banks (Santander, BBVA and New Commercial Bank).
The program is the first to combine the public and private sectors in encouraging housing for lower middle earners. Plus, it’s a new way to distribute and limit the risks of investment and financing, with transparent rules that the State controls. This limits the impact of any problems created by private sector decisions. The Uruguayan government wants to change the past habits of banks solely financing monopolistic investors and limiting home owners.
One example of this is the situation in Montevideo. Here, the national and municipal authorities wish to promote development of the central and intermediate areas of the city, discouraging investment along the east coast (Resume, Malvin, Punta Gorda, Carrasco, etc.). Currently, these areas are the focus of investment real estate and the population is dominated by the upper middle and high income families. With this new housing policy the capital of Uruguay will supposedly enjoy greater social integration.
Changing the habits of property developers is key in changing the trend seen in Montevideo. Many property developers in Uruguay tend to construct luxury properties aimed at international and Uruguayan investors. Hence, the new law brought in by National Housing Agency offers developers incentives to construct housing for middle and lower income Uruguayans. Any Uruguay real estate investment to be constructed under the new law will be available to buy or rent, but must be affordable to meet the demands of the middle-income sectors.
The bill has been developed with work and consultation from the Association of Private Promoters of Uruguayan Construction (APPCU) and their president, the architect Ariel Cagnoli; the Uruguayan Chamber of Construction (CCU) and their president, the engineer Ignacio Otegui and the Association of Real Estate Administrators (ADAPI) and their director, Edward Baldwin.
For the new bill to be successful all types of developers and construction firms will have to participate from large firms to even small-scale property developers. The idea behind the bill is also to increase activity in lesser developed and desirable areas as well as make them more accessible to less affluent buyers.
Private companies look to benefit from this change in Uruguayan property legislation. State and private finance and credit companies are going to offer buyers 25 year period mortgages with interest rates of around 6%. The government has already signed deals with two state banks (Banco Hipotecario del Uruguay and Banco de la Republica Oriental del Uruguay) and three private banks (Santander, BBVA and New Commercial Bank).
The program is the first to combine the public and private sectors in encouraging housing for lower middle earners. Plus, it’s a new way to distribute and limit the risks of investment and financing, with transparent rules that the State controls. This limits the impact of any problems created by private sector decisions. The Uruguayan government wants to change the past habits of banks solely financing monopolistic investors and limiting home owners.
Go back to Argentina Real Estate News:
Argentina Real Estate Trusts - Investments in Construction at Cost in Argentina
Palermo Green in Buenos Aires (Palermo Verde or Natural) Bosques of Palermo Buenos Aires
BUENOS AIRES HABITAT a pioneer of the extended stay hotel-style apartment concept in Buenos Aires. Offers luxurious furnished apartments in Buenos Aires for temporary rent as an alternative to high-class hotels. Whether your visit is for a few days or a few months, for vacation or business trip, we will make your Buenos Aires experience memorable. All of our Buenos Aires apartments offer high-speed internet access, cable TV and housekeeping service.
Argentina Real Estate Trusts - Investments in Construction at Cost in Argentina
Palermo Green in Buenos Aires (Palermo Verde or Natural) Bosques of Palermo Buenos Aires
BUENOS AIRES HABITAT a pioneer of the extended stay hotel-style apartment concept in Buenos Aires. Offers luxurious furnished apartments in Buenos Aires for temporary rent as an alternative to high-class hotels. Whether your visit is for a few days or a few months, for vacation or business trip, we will make your Buenos Aires experience memorable. All of our Buenos Aires apartments offer high-speed internet access, cable TV and housekeeping service.
