Cerro Cora 1124
CP1544 Asuncion, Paraguay
farmland realtor since 1997
aditional resources :
uruguay country information
Farmland Investments South America as asset class
farmland for sale Argentina Estancias
(paralel portal site)
guest ranches, estancias in uruguay
About Estancias as gentleman farming alternatives to: Masseria Storica in Puglia, Sicilia or Cortijo antiguo historico in Andalucia
and other historic mediteranian estates
Fertile land is our world’s ultimate limited asset.
As real estate agents we offer farmland and rural properties in Uruguay and Paraguay, to a lesser extent in Argentina
We are investors in land ourself. We aim to offer properties and investments conservatively and thoroughly.
We can, when needed, offer integrated solutions with legal and administrative services providers involved and we cooperate with a number of local partner realtors and should be able to locate the property most suitable for you
A brief September 2013 market view
- Paraguay arguably offers the best land price/value these days. The highest yielding farms (soya, sugar cane), intensivly operated and close to posessing plants
currently cost US$5000-10.000 per hectare, cattle ranch land US$500-2500, virgin land forest covered in the semi arid Chaco region with good soil fertility costs US$150-400 per hectare. More on that on our offers land paraguay site, or forest investments - preserving natural forests
Paraguay has the region’s most favorable tax regime, 10% personal income tax, 10% VAT.
On the down side Paraguay ranks not too high in rule of law or state institutions.
- Uruguay is in many aspects the opposite case. A mature civic society with strong rule of law and a distinctive european air.
Prices are those of a maturer market. With US$8.000-13.000 per hectare for prime crop land (soya, corn, wheat), US$3000-6000 per hectare for good cattle pasture. (which would often include some fraction suitable for cropping), operational returns are typically in the 3-5% range. The value purchased is higher though then current returns indicate, farmland in Uruguay can potentially yield more and will do so as rising land values lead to further intensification in farming.
Virgin land does not exist anymore in Uruguay.
Income is taxed in the 15-30% range, farmrental income in the 12-15% range, VAT being 22%
more at uruguay country information - taxes costs regulations immigration
Argentina and Bolivia are briefly discussed here :
raw land farmland investment news
Buyers of land have a basic decision to make
- buy farmland and operate it oneself, be it with more of a leisure aproach or be it with a professional approach if one has what it takes, or
- buy farmland and hire a management company to run it, with management fees reducing return to some extent, or
- buy farmland and rent it out, rental return typically being in the 3% range, requires less attention then any of the above, and income being rather (though not 100%) predictable, or
- buy raw land that has potential to be converted into farmland (land banking), least attention required, no operational return.
Virgin fertile land is our world’s ultimate limited asset. The purest form of land investment is raw (virgin) land real estate, where no premium is paid for anything man-made (like buildings or an operational farm set up).
Properties with potential for appreciation would have a favorable combination of climate, topograhy, soil fertility, environmental viability for agriculture.
We list some below offers land Paraguay Chaco.
Historic Estancias - investment in agriculture and gentleman farmer lifestyle combined : In Argentina as well as Uruguay a few historic estates, estancias, dating from the 1850s to the 1900s, survive to this day, often quite stately in their appearance, with 100 years old parks, inner courtyards, galleries, heavy wrought iron window bars etc.
It is a rare combination of reasonable agricultural potential and rural gentry lifestyle.
Until recently owners did not ask a premium when an estancia contained stately historic buildings, because they are costly to maintain. This has changed. Today a property with a fairly well maintained casco historico (“casco” meaning farmstead, or if stately, the mansion) and sufficient farmland to make it a viable operation, 300 hectare, grain-cattle combination, should cost US$3m (in both Argentina or Uruguay).
We list some below offers historic estancias.
Uruguay land prices US$ per hectar (ha), 1 ha = 2,47 acre - Sept 2013 |
modest buildings and infrastructure in reasonable condition
water is no issue in Uruguay, you have sufficient water supply everywhere, permanent streams or subsurface
marginal pasture land, (sheep, extensive cattle)
agriculture partly limited by topography (steep slopes, wetlands)
limited use for forestry due to lack of acces
marginal pasture land, (sheep, extensive cattle)
but apt for forestry (appropriate soils, proximity to paved roads, paper mills)
apt for sheep, extensive to semi-intensive cattle breeding (feeding)
some fraction of surface should allow pasture improvements
farmland apt for crop/cattle.
Average or above average soil fertility (of high Uruguayan standards), allows intensive cattle feeding operation, at least half of surface should allow pasture improvements. At least 20% of surface should allow feed crop or cash crop.
farmland on rich agricultural (sedimentary) soils
apt for crops (corn, soya, wheat, sunflower etc), or crop/cattle rotation
premium, if located in Uruguays southern, most developed belt, max 2h drive from either Colonia or Montevideo or Punta del Este
The news blog
on listings, news & opinion on farmland investment, subscribable on farmland newsfeed
GMO, the US fund management firm
acquired 45.000 hectare forestation land in northern Uruguay at roughly US$140M from Montes del Plata, the forestation and paper mill operator. Not being prime forestation land due to far distance to existing paper mills, it never the less posed a rare opportunity to purchase a parcel of such substantial size.
Being a transaction similar in nature, in December 2012 Ence, the spanish pulp producer sold 27.780 hectare at US$77M to another US fund.
Both transactions, due to buyers being investment funds, required specific permission by the uruguayan state.
268) midsize ranch Uruguay, Lavalleja
440 hectare US$ 1.980.000
A gently rolling hills rangeland ranch, 1/3 deeper soils with cropping potential, entire land suitable for a complete circle cattle breeding + fattening operation
Towards a devaluation of the Uruguayan Peso, again ? The farming sector would, as in the past, welcome it. Labour intensive industries like garments are struggling with high wages, a lunch in Montevideo costs more then in Berlin, the current account is negative at 2% of GDP. See also: uruguay country information
in 2010 our portal site stated that farmland prices in Uruguay were 30-40% of those of Northwestern Europe, it was now adjusted to 25-30%. Prices rose stronger in Europe then in Uruguay recently. Eastern German medium productivity crop land (comparing to aprox. Coneat 100) is currently offered at US$20.000/ha. Prices are similiar in the UK, but higher still in Netherlands, Denmark, western Germany.
244) cattle farm in Rocha
640 hectare, US$3.008.000
1/3 potential crop land, Well known scenic region (palmtree woods, hills and lagoons)
more details : offer 244
a 2010 world bank report shows map with estimated climate change effects on global agri yields, confirming the common view that high lattitude regions will win, and most others loose, Uruguay neatly standing out though
HD map on : uruguay country information
Uruguayan gras-fed beef
in New York City restaurants makes it into the lifestyle section of the Financial Times.
Barron’s article about farmland
Mark Faber mentiones farmland opportunities in Paraguay and Uruguay.