Current Trends in the Rural Sector in Uruguay

The rural market in Uruguay continues to show signs of strength, even in a context of low commodity prices. Investors continue to bet on the country, attracted by legal stability, the constant appreciation of land, and high demand for various types of farms...
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October 21, 2024
Current Trends in the Rural Sector in Uruguay

Despite the current drop in commodity prices, the farmland market in Uruguay continues to show notable demand. Investors remain active, convinced that this low-price situation is temporary and that investing in Uruguay remains an attractive option.

This appeal is largely due to the legal stability of the country, where the rules of the game have not changed despite government changes in recent years. This legal security is fundamental for investors and is one of the reasons why Uruguay continues to be a preferred destination.

Moreover, the land market in Uruguay is experiencing constant appreciation. The annual appreciation of land varies between 1.5% and 2.5%, or even more, depending on the time of year. This appreciation, combined with the profitability of farming, makes investing in land extremely attractive.

Regarding current prices, all types of farmland are in high demand. Forestry lands are the most sought after, with prices around $4,000 per hectare. Agricultural fields, especially those with a high percentage of arable land, exceed $10,000 per hectare. Finally, livestock lands have prices ranging from $2,500 per hectare in the north of the country to $5,000 or $6,000 per hectare in the south and center-south of Uruguay.

In summary, despite the drop in commodity prices, the combination of legal stability, constant appreciation, and high demand continues to make the Uruguayan agricultural market a very attractive option for investors.

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