Foreign Money Driving Uruguay’s Real Estate Boom
Espectador has a feature interview with former Uruguay Central Bank Director Juan Carlos Protasi regarding the status quo of Uruguay real estate and foreign investment. The current boom in Uruguay is due to new waves of foreign investment, says Protasi, and not because Uruguayan banks are loosening borrowing guidelines.
“The good thing is that here in Uruguay there has been no intervention with the credit markets. If real estate prices fall a little bit, there won’t be an impact on bank portfolios. It’s the capital that’s flowing in, the cash, that is behind this boom,” assured Protasi.
Looking abroad, the ex-Central Bank Director believes “the U.S. Federal Reserve is close to reversing policy which will tighten monetary flexibility, and that could potentially have an impact on money supply which won’t be growing so rapidly.” Protasi believes the Dollar will stay weak for the near-term horizon, but he voices confidence the U.S. economy is beginning to recover.
Regarding real estate activity and prices, Protasi says Uruguay real estate tax coffers would suggest a leveling off in activity in recent months. “Now we are beginning to see more supply, the people have more options, and as a result, they are a little more hesitant to make a purchase without seeing everything first. Prices aren’t going to be posting huge increases like they were previously, because there is more supply in Uruguay and more competition to sell the same property.”
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