The official data of farmland transactions in 2019 are online available. The records refer to transactions that were presented to the Institute of Colonization. These are transactions for plots of more than 500 hectares and CONEAT 100 or more.
The overall area transferred is 181.00 hectares. Considerably more than in 2017 and 2018. The average price per hectare is $ 4.055 USD. The reason that there are more transactions and more area sold is for different reasons. The final go decision to construct a new UPM pulp mill in central Uruguay near Paso de los Toros is a reason for investors to look at properties in that area. Argentines are nervous about the political and economic situation in their country and this immediately has an effect on buy and sell side of real estate in Uruguay. Besides that, the reduced prices also attract domestic and international buyers looking for real opportunities. Some examples of executed transactions are:
– a cattle farming operation in Cerro Largo of 6.561 hectares at 1.800 USD per hectare,
– a cattle farm in San José of 5.779 hectares for 3.200 USD per hectare,
– a top crop farm in Rio Negro of 3.500 hectares for 6.800 USD per hectare, or
– a forestry plantation with cattle in Cerro Largo of 15.196 hectares for 6.106 USD.
It can be deduced from the full list of transactions that average prices are:
– cattle land 1.500 to 3.500 USD per hectare
– forestry land 3.000 USD per hectare for non-planted area up to 6.00 for planted forest
– mix of crop, timber and cattle land 3.500 to 5.000 USD per hectare
– crop land 5.000 to 7.500 USD per hectare (75% or more suitable for cropping)
Prices vary depending on soils and location. Apart from these general references, there can be a plus on the prices when there is an important farmhouse or when the property is located near a city like Montevideo, Punta del Este or Colonia del Sacramento.
Upon request we can present more data and explanations on soil quality and other important factors in determination of prices.