Farmland values first semester 2021 in Uruguay

During the first six months of 2021, on-line records show that 75 transactions of significant size were presented to the Institute of Colonization. Nearly 514.000 hectares were sold for an aggregated value of 130 M USD. Average value 3.955 USD per hectare.

Some preliminary conclusions are that premium cropland in the west of the country increased in value (between 8.000 and 10.000 USD per hectare). At the same time, we see that cattle land is stable in value with prices between 2.000 and 2.500 USD per hectare in the north of Uruguay and slightly increased 3.500 to 4.500 USD per hectare in the south of the country. Returns of investment are attractive with international commodity prices strongly increased in grains, pulp and meat.

The largest transaction was a timberland operation in Tacuarembó where 17.000 hectares were sold for 80 M USD. Other large transactions are either cropland in the west of Uruguay (Soriano and Rio Negro) or timberland in the east of the country. There is a local fund actively purchasing timberland assets in Lavalleja, Maldonado and Treinta y Tres.

Striking is also that during the pandemic there were many transactions of local investors and farmers buying mixed farms for prices between 1.5 and 3 M USD. The window of opportunity that was created by closed international borders leads many domestic investors to search for the best value farms.

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