Real estate boom in Punta del Este: explosion of occupation and new works promoted by Argentine investors

Surfside is located on 8 hectares of land on the easternmost curve of the Brava, above the mouth of the Barra

east end, one of the favorite tourist destinations for the Argentine public with high purchasing power, once again recovered the brilliance of other times. New housing works were once again the protagonists of this regional destination that is emerging with success and a record occupancy of 90% these days.

Data provided by the Punta del Este-Maldonado Real Estate Chamber (CIPEM) estimate that even with the pandemic included, the area continued to attract investment. In the last five years they invested $5.5 billion and Argentines lead with 60% leading among those who motorized funds, followed by 20% of Brazilians. The rest is money from Europeans and Americans who choose this area of ​​Uruguay to buy homes.

There, the real estate market is in one of the best moments in history. I also know Authorized about 2.85 million square meters to build in the last 5 years and about 2 million m2 (about 10,000 homes) were completed and the rest is under construction.

This was confirmed to Infobae Alejandra Covello, owner of Covello International, who highlighted that several high-end buildings were opened and this season more than 300,000 tourists were received. “50% were again of Argentine origin, then Brazilians, Paraguayans, Americans, Spanish, Belgians and French, among others. There are estimates that indicate that for the next Carnival holiday (between the end of February and the beginning of March) there could be a total of 700,000 tourists, a record”, he estimated.

choose the east

Sources from the segment specify that both the Argentines and the Uruguayans who settle in Punta come from other cities, mainly from Montevideo (60%) and the rest from the Uruguayan interior.

“Punta is chosen for its safety, beaches and nature. Many tourists then end up buying to live or spend more time because of the possibilities of teleworking” (Covello)

“Many choose it for the safety, the beaches and the nature of the area. Even many Argentine tourists then end up buying to live or spend more time here because of the possibilities of teleworking. Schools like the International College, among them, have a waiting list,” added Covello.

In the eastern destination, Argentines continue to promote summer occupation and housing investments
In the eastern destination, Argentines continue to promote summer occupation and housing investments

investors albicelestes They see that Punta del Este is a stable market, that in Miami the values ​​went through the roof and they see Uruguay as very attractive.

“Home purchases vary between genuine investment for end user and second residence. And to meet the demand, the local government plans to invest some USD 150 million in the five-year period for different public works such as roads, water and energy, in the department of Maldonado”, he explained to Infobae Javier Sena, holder of the CIPEM.

In addition, universities, a great gastronomic and entertainment offer, as well as offices and warehouses are being added.

Within the group of Argentines that boosted sales there is a large percentage that allocates it for investment as a safeguard of money to obtain an income from the rental, estimated there at 6% per year.

“In addition, the demand for Argentines who decided to move to Uruguay for different reasons grew, including the tax benefits and the peace of mind that country offers,” he told Infobae Manuel Valdes, commercial manager of CRIBA, a company that carries out several buildings in this Uruguayan land.

For works and values

The Uruguayan economy showed a very heterogeneous recovery, influenced by the performance of the primary sectors of the economy and construction.

Valdés expanded on the following: “We can see that the market is very active, many private developers are launching new projects, such as Atlántico by the Altius group, The World Trade Center, Signature at the Sea, by the architect Macio Coghan, and others in different locations, both on the seafront and in José Ignacio. This, in part, was one of the motivations to carry out CRIBA’s expansion plan at a regional level”.

CRIBA carries out several works in Punta del Este
CRIBA carries out several works in Punta del Este

In this company, they currently directly and indirectly employ more than 200 workers and currently build 25,000 m2 of work; at the end of the year they estimate to exceed 80,000 m2.

“Currently we are with four works in progress: the expansion of the Hotel Grand Center and Aldeana Manantiales, also Nostrum Central for the Altius group and 01Libertador for the Vitrium group in Montevideo. In addition, we closed commercial agreements to make the Atlántico shopping mall, with 45,000 m2 of work for the Altius group; Signature at the Sea for the Upgrade group. all these investments exceed 70 million dollars”, Valdes specified.

The real estate construction and development market is growing with a wide range of projects, ranging from high-end apartments, luxury and millionaire developments to more focused apartments at an affordable price.

There is also growth in locations on the outskirts of Punta del Este (such as the one located on Route 104 and Camino Medellín, where several art galleries were installed and a the Museum of Contemporary American Art) with developments of private residences, further away from the downtown area.

Work progress at The Grand Center
Work progress at The Grand Center

Atlántico Punta del Este is a mixed-use project that integrates apartment towers and a shopping center, connecting the key points of the East, in a strategic location at Stop 22 of Roosevelt Avenue.

Diego Chapuis, commercial manager of Altius Group, which develops it, pointed out that “this area is positioned as an avant-garde pole in Punta del Este and an option to live or get a good income all year round. The More apartment tower has the differential of the promoted housing law (promoted by the Uruguayan State) and an offer of amenities that stand out from the rest of the proposals, since it allows exempting taxes and thus increasing profitability. So far, and only 3 months after starting the works, it has sold 50% of its apartments”.

A complex that includes shopping of the Altius group.  The More tower, housing, enters into the plan of the units Promoted by the Uruguayan State
A complex that includes shopping of the Altius group. The More tower, housing, enters into the plan of the units Promoted by the Uruguayan State

Unit prices there range from $111,000 and $240,000.

At Covello International they sell some of the most ambitious developments such as the Surfside Village of Grupo Tiburón (with more than 50 years of experience in the eastern land), with the architecture of the studio of mario robert alvarez.

“Tower 1 is being delivered and is one of the 7 buildings that will complete the Village just steps from La Barra. This was built with the new planning code that allows to put in value, building in height a totally deteriorated area and without any attraction, “said Covello.

The administration paved, illuminated and designed roundabouts that make Aparicio Saravia Avenue the one that relieves traffic from Rambla Batlle and Ordoñez de La Brava. It was also consolidated as a place that will attract future growth.

The area of ​​Aparicio Saravia Avenue, one of the most promising.  There's Surfside
The area of ​​Aparicio Saravia Avenue, one of the most promising. There’s Surfside

The brand new tower has 24 floors with units that face the sea from 80 to 420 m2, with a restaurant, gym, yoga room, swimming pools and a large triple-height lobby with a fireplace and library, among other amenities.

The Village will have a 400 m2 supermarket from an important chain, a pharmacy, a bakery, bars and other shops.

In that area, sales values ​​range between USD 3,500 to 4,200 and a little more premium at USD 5,500 per m2, while rentals are for at least 1 month, and one-bedroom apartments in a building with amenities start at USD 3,500, and two-bedroom apartments at USD 4,500.

Foci of greater expansion and how to buy

“As far as Maldonado is concerned, great growth and potential is seen in the area of ​​the Maldonado terminal, Jardines de Córdoba, José Ignacio, Manantiales, Bikini, Rincón del Indio and Sauce de Portezuelo,” Chapuis said.

Another recent opening, in José Ignacio, is the Casagrande Hotel & Beach Club, immersed in a pine forest and close to Playa Mansa.

With rooms, suites and apartments with 1, 2 and 3 bedrooms, with surfaces from 47 to 200 m2 (sold from USD 295.000), demanded an investment $22 million.

Casagrande, residences and hotel in José Ignacio
Casagrande, residences and hotel in José Ignacio

Federico Blizniuk, director of Tay Group, which together with KP Uruguay, developed it together, said that: “Casagrande is going to occupy the space between traditional hotels and houses. Post-COVID tourism demands this type of product: agile and flexible reservation processes, the spaciousness and comfort of an apartment. Here there is its own pantry, the kitchen is an attraction and multiple activities such as fishing, surfing & paddleboarding, kite surfing, among others”.

It was built with the Prenova system, a sustainable method in which recyclable materials are used. It has renewable energy sources and a wastewater reuse system.

How to do an operation

In addition to buying, Argentines can exchange properties located in our country to access a home in the East.

“In case of purchase the commission is 3%, the notary’s expenses are obviously with different taxes and depend on each operation but never exceed 3% with taxes and fees”, Clarified Covello.

Ocean view bedroom at Le Parc Punta del Este
Ocean view bedroom at Le Parc Punta del Este

One of the novelties of the summer is that in Le Parc Punta del Este Torre III, its last available unit is sold approximately at USD 3,300 per m2.

“Located at Stop 9 and ½ of Playa Brava, it becomes the most demanded option in the area by Argentines and tourists. It is part of the preferences to vacation and invest, and increasingly to live on the eastern coast”, he described to Darwin Scrollini, responsible for the real estate company that markets the building developed by Raghsa.


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