South American Real Estate News

Updated Uruguay Farmland Report March 2021

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Transactions in the period January – March 2021.

In the first three months of the year, there have been 27 transactions of productive farmland in Uruguay. In January some large forestry properties changed ownership. These timberland operations are situated in eastern Uruguay and refer to eucalyptus for the pulp industry. 

The price of timberland depends on availability of wood, but in general, one can say that price fluctuates between 3.000 and 4.500 USD per hectare.

In March, we saw large tracts of cropland change from one Family Office to the other. These farms are located in Soriano close to Cardona. These prices were relatively high due to presence of pivots on irrigated cropland. 

Premium cropland in the western part of the country goes for prices between 8.000 and 10.000 USD per hectare depending on distance to grain port Nueva Palmira.

Most other transactions are carried out by Uruguayans buying mixed farms in the south of the country for approx. 4,000 USD per hectare.

Special mention for a wagyú cattle farm in Maldonado that was sold at 10.000 USD per hectare including the herd and machinery.

The most economic options are cattle farms in the north, Cerro Largo and Tacuarembó where one can still purchase large cattle ranches at 2.500 USD per hectare.

So far, the market has been less dynamic than expected. This is probably due to travel restrictions that prevent Argentines and other international investors from visiting farms. Simultaneously sellers decide to hold on until the borders are opened again. Travelling to Uruguay is only possible with special permission to enter for business reasons and requires a 7-day quarantine.

Source: Wilfred Morren

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About Geoffrey W W McRae

Geoffery is a New Zealander focused on South America with a strong commercial, farming and real estate background spanning over 30 years in five different countries. He is the founder of Gateway to South America which is a real estate consulting group specialising in Argentina, Brazil, Chile. Paraguay, Peru and Uruguay. His reputation for discretion, experience and expertise has involved him in representing some of South America's highest-profile clients.

Post available in: English

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