Uruguay’s Rich Lands Embracing New Owners
In the bustling city of Montevideo, it has been revealed that the landscape of Uruguayan productive lands is evolving rapidly. The Agriculture and Livestock Ministry’s recent report on the “Price of land” shed light on this shift, indicating that a remarkable transformation has unfolded in the first half of 2024. The data unveiled a doubling in the number of hectares exchanged compared to the previous year.
Key Findings from the Report:
- A total of 183,000 hectares were traded, amounting to a staggering US$ 718 million in transactions, with an average price of US$ 3,910 per hectare.
- Among the various land types, rice-livestock fields and livestock-forestry areas stood out, accounting for 32% and 30% of the transactions, respectively.
- Notably, the number of operations surged by 49% from the first quarter to the second quarter of 2024, with transactions expanding from nearly 72,000 to 112,000 hectares.
Foreign Investments Taking Root:
Foreign investments, primarily from the United States, Japan, Brazil, and Argentina, have played a significant role in this dynamic landscape. Between January and August, these international capitals acquired a substantial 135,888 hectares in Uruguay, as reported by the National Colonization Institute and land market operators.
Regional Trends and Average Prices:
- Departments such as Treinta y Tres, Cerro Largo, and Rivera dominated the transactions, with average prices per hectare ranging from US$ 3,161 to US$ 3,812.
- Conversely, departments like Soriano, Colonia, and Canelones, known for their high productive capacity, commanded higher prices, averaging between US$ 6,716 and US$ 8,355 per hectare.
- Artigas emerged with the lowest average price per hectare at US$ 2,267, showcasing the diversity in land value across regions.
Furthermore, the report highlighted that the majority of transactions (71%) involved properties ranging from 10 to 100 hectares, reflecting the prevailing trend in land acquisitions.
In conclusion, the swift pace at which Uruguayan productive lands are changing hands underscores the evolving landscape of the agricultural sector. As new owners stake their claim on these fertile terrains, the future of agriculture in Uruguay seems ripe with opportunities for growth and development.
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