Ola Uruguay Real Estate and Investments

Punta del Diablo is a small fishing town that has exploded in popularity in recent years. In the first ten days of January, the town received 25,000 guests. Some came to visit, some opened up new businesses, and others enjoyed their newly built dream homes. Outside of the high season (December to February), the village contracts to its sleepy year-round population of around 700 friendly fishermen and craft workers. Nowadays, many of the town’s residents supplement their traditional work with construction.

Over 60 homes were built last year, which is extraordinary considering the town’s small size. There are whispers of who will be the first to build a 4- or 5-star hotel. On-going debate questions if rapid growth will take away some of the town’s mystique. Some fear Diablo will become a new Punta del Este. Others say it already has. But for the workers who now have year-round work, the real estate boom is a positive.

“With so many people coming, we have work all year; the people of the area are content,” said resident José María Rodríguez in an interview with El Pais. He continued, “those who don’t go to sea, build homes.” Of the 10 fishing boats that remain in the town, only three actually work. With fewer fish to catch, construction is a welcome occupation. Much of the demand is from private owners, looking to build themselves a summer home. Others build a few clustered units with the sole intention of renting them. While in Punta del Diablo in January, I saw a number of these properties. Often they were strikingly modern in design and consisted of two or three matching units.

Investing in real estate is paying off. In mid-January there were no available cabañas to rent, nor beds in a hostel. The camping site was at 80% capacity. For the first two weeks of January, a newly built home rents for roughly US$2,000. Very few homes, new or rustic, rent for less than US$80 a day. A room in a hostel costs US$20 or US$30, and a suite, US$140.

Besides investing in real estate, Punta del Diablo is fast becoming a place full of potential for business ventures. Would-be chefs might considering opening a restaurant specializing in a non-regional food or specialty food, like vegetarian cuisine or tapas. Jorge Schellemberg, also in an interview with El Pais (01/17/2010) talks about how he has opened a bar/music venue and says Punta del Diablo is an exciting place to do business. “There is an entire sector of intellectuals that summer here: people who know how to enjoy good music [and food].”

Punta is also very popular with the younger traveller with expendable income. A savvy expatriate looking to do business in Uruguay could open a hostel, a pub, a surf school, and simultaneously rent out a property that they purchased. Clever opportunities abound. One entrepreneur converted his scooter into a mobile laundromat and now makes his living picking-up and dropping-off clothes to tourists. For the less inventive, real estate is a straight-forward way to capitalize on the booming market. A 500-square-meter plot of land with a view of the ocean is selling now for US$40,000 online, while US$25,000 will get you a 1,000-square-meter house farther inland. Roughly that amounts to about US$80 to US$90 per square meter for properties close to the beach or with a view, and US$25 to US$40 a square meter for lots farther away from the ocean.

For more information about the town, rental properties, and land for sale, check out the Punta del Diablo Portal: http://www.portaldeldiablo.com.uy.