IL Postcard

The Best Deals in Montevideo

Date: 01/24/2008

Thursday, Jan. 24, 2007
Montevideo, Uruguay

Read more about Uruguay in International Living Postcards—your daily escape

I’ve been to enough property auctions in Uruguay now to know a good deal when I see one. I also learned that just because the location is good doesn’t mean the property will be…and that if an area is generally run-down, it doesn’t mean you won’t find high-quality properties there.

Take, for example, the prestigious area of Pocitos. Usually you would jump at the chance to buy cheap property here, but I’ve come across tiny windowless boxes on auction that would be impossible to rent or re-sell.

Ciudad Vieja, on the other hand, has a reputation for being run-down, but I’ve seen stately classic buildings auctioned in this area. In Ciudad Vieja, the good and bad areas are continually changing from block to block. The sector has produced good returns and has a large upside potential, but buying here takes some footwork. The bottom line is that you must check out each property to rate it on its own merits.

There are 64 official sectors in Montevideo. Here are the areas I keep an eye on when they come up at the auctions:

- Ciudad Vieja: The original historic center of Montevideo, where antique home restorations is the name of the game.

- Centro: Montevideo’s commercial center, adjacent to Ciudad Vieja, with property prices among the lowest in the city. (This is where I bought my own apartment.)

- Pocitos: An upscale community that’s among the favorites of Uruguayans.

- Buceo, Malvin, and Punta Gorda: Pleasant seaside neighborhoods that offer quiet sycamore-lined streets, good shopping areas, and access to Montevideo’s beaches.

- Carrasco: A beautiful area at the edge of Montevideo with larger, modern homes, spacious parks, and beachfront. Carrasco is just minutes from the international airport and the city’s best shopping, and is popular with foreign business executives and diplomats.

I prefer each of these areas for different reasons; each has its individual character and its own “downtown” shopping district. They all have water views, easy access to the city’s beaches, and the opportunity to either rent or sell to a wide market at a decent price…provided the property is well chosen.

A day at the auctions is an exciting experience, but you’ll need to do your homework before you go. In preparation, I looked at about 30 properties in Ciudad Vieja and Centro, in order to learn what things were really worth on a per-square-meter basis. I walked the neighborhoods both day and night. And before auction day came, I went to see the specific properties of interest.

At the private auction houses, you’ll find a relatively high percentage of desirable properties on the block—but they normally auction only one property on any given day, to satisfy a single judicial order. At the state bank auctions, there’s a very low percentage of quality real estate, but they auction as many as 80 during their monthly three-day session.

Here’s what’s on auction by the state bank this month.You’ll find a list of auctions (remates, in Spanish) for both Montevideo and el interior, which is everywhere else in Uruguay. On the list, the column for base pesos is the base price in Uruguayan pesos, and the gastos pesos is the property’s debt.

For a list of what’s happening in the private auction houses, visit Rematadores.com. Have a look at the six apartments being auctioned in Punta del Este.

Lee Harrison
Roving Latin America Editor, International Living

Editor’s note: Lee Harrison will be speaking about more ways to invest or buy a second home in Uruguay at International Living's 2008 Ultimate Event in Cancun, Mexico, May 28–31. If you are considering buying a second home, investing, or making the move to Uruguay, Lee will be available at the conference to answer any questions you may have.

P.S. Interested in learning more about Uruguay's property auctions? Lee wrote a special report with all the inside information. It's called The Auctioneer's Gavel Closes Uruguay's Best Deals.

Read related articles:

- A Two-Bedroom Apartment for $6,000...and Other Bargains

- Pay a LOT Less for Propety at the Uruguay Auction

- The Best Rental Returns in Uruguay