Foreign buyers eye Uruguayan land

by Dave

Montevideo, capital of the country. A view of pedestrian street in the Ciudad Vieja, former Spanish citadel

Image via Wikipedia

why is this South American country, sandwiched between Argentina, Brazil and the Atlantic Ocean, so attractive to foreign investors?

“Uruguay is a small area in the broader region where buyers find better prices and political and economic stability,” said Eduardo Caldeyro from Caldeyro-Stajano, a land sales broker.

“Curiously enough, for the first time we are receiving enquiries from Americans; within South America we get calls from Argentines, Brazilians and a few Colombians. From Europe, it is mostly Spanish real estate investors, who are facing a sharp slowdown there.”

The government, which is actively encouraging foreign investment, is nonetheless worried.

Ernesto Agazzi, the agriculture minister, wants parliament to consider a ban on land sales along the borders with Argentina and Brazil to non-resident foreigners.

“This is to preserve our sovereignty, to avoid smugglers holding land on both sides of the border (…) and to prevent foot-and-mouth disease from entering the country.