Land records released by the Institute of Colonization for the first half of 2024 indicate a strong demand for tangible assets, covering transactions up to June 28th.
During this period, transactions in Uruguay totaled nearly 865 million USD, resulting in the transfer of over 175,000 hectares of land. This averages out to approximately 4,900 USD per hectare (about 2,000 USD per acre). The largest transactions were in timberland, where pricing included both land and timber, contributing to an increase in the average price per hectare. Notable buyers during the first semester included BTG Pactual, OJI Holding from Japan, UPM, and Montes del Plata.
High-quality cropland in Colonia and Soriano was sold at prices ranging from 10,000 to 12,000 USD per hectare, while the best cropland in Rio Negro and San José commanded prices between 8,000 and 10,000 USD per hectare. Although interest in cropland remains high even in areas farther from logistical centers, entry-level prices are lower. These premium assets are particularly attractive to international investors, with irrigation being a critical factor in decision-making. The availability of water, existing irrigation systems, or the potential for future irrigation developments is increasingly relevant.
Timberland prices vary depending on existing wood resources. There is significant demand for greenfield projects, though they are rare. For land with established eucalyptus trees, prices can reach between 4,500 and 5,000 USD per hectare, while bare timberland in the east typically sells for around 3,500 USD per hectare. Opportunities primarily exist in existing plantations post-harvest, where decisions on regrowth or replanting become crucial.
The price of cattle land is influenced by productivity, particularly the ability to seed pastures and fodder crops. In northern regions, land can be found for about 2,500 USD per hectare, while in the southern areas, where carrying capacity is higher, prices may rise to 5,000 USD per hectare. This segment of the market is primarily driven by domestic buyers.
Rural properties located near the coast or close to Montevideo and Punta del Este tend to command premium prices.
Currently, we observe a greater number of buyers compared to sellers in the market. Upon request, we can provide more detailed information about specific regions, activities, or CONEAT.
