The drop in purchases recorded last year did not impact on property prices, which remained on the rise. Experts attribute the decline for the category of property transactions to government measures that have beaten Argentine foreign investment in the sector in the country. Meanwhile, local officials suggest that the social housing will favor low cost and invigorate the market.The house sales market shrank in the last year, after accumulating a steady growth since 2009. However, the smaller number of operations did not have as counterpart a correction to the low selling prices, evaluated both in pesos, dollars or even related to the evolution of the wage of the Uruguayans. According to INE data, the index m in purchases fell by 10.6% in the last quarter of 2012 compared to the same period last year.
Thus, the year closed with a contraction of the housing market in each of the quarters individually measured. On average, the drop in 2012 was 11.2% in the number of square feet involved in purchases. In December last year a total of 7,382 registered trading, when in 2011 the number stood at 9,646. That implies a drop of 23% in 12 months.
However, no quarter saw a price level lower than the same period in 2011. The data show that the values paid are indifferent to market downturn. Measured in current dollars, the prices in the fourth quarter were 12% above the October-December period of 2011. Thus, the year ended with a 10.9% average rise in the price per square meter measured in foreign currency.
But if the price of real estate destined for housing is usually published and paid in dollars, market fundamentals are tied primarily to the purchasing power of Uruguayans evolution of income and consumer prices locally and the situation local labor market.
However, the lower average exchange rate in the last year made, measured in Uruguayan pesos, the property had a still more pronounced rise of 17.4%.
The evolution of property values also was in line with the salary increase of the Uruguayans in the year. Remuneration for work grew by 13% during 2012 and that means that the value of property increased 3.8% measured in the average salary amount required to purchase the Uruguayans.
£ ¬ the last quarter of 2012 shrank (market purchases) due to low foreign investment, mainly from Argentina. The consumer or local investor still active??, Told The Observer, Gabriel Conde, president of the Chamber of Real Estate Uruguay (CIU). He said the purchases will?? Falling??. ? December was aggravated after the signing of tax information exchange with Argentina. The problems with them we will add another??, Said Conde.
The operator does not believe that property prices down this 2013 because circumstances?? Do not exist??. Owners do not have?? Alternatives?? where to put the money. ? Sellers are firm and no need cash??, Said.