Uruguay, known for its fertile plains and agro-driven economy, witnessed a remarkable surge in the number of agricultural land sale transactions in the year 2022. This article provides a detailed analysis of the price of land per hectare in Uruguay, underlining the significant shifts and offering a holistic view of the country’s vibrant agro-economic landscape.
Land Sales: A Year of Growth
The year 2022 marked an impressive growth phase for Uruguay’s agricultural land market. A total of 1,585 land sales transactions were documented, covering an area of over 291,000 hectares. This constitutes a substantial increase of 26% in comparison to the previous year, considering the total surface area sold.
Unpacking the Financials: A Look at the Numbers
A significant feature of Uruguay’s land market in 2022 was the overall monetary value of the transactions. These amounted to a staggering $1.089 billion, leading to an average value of USD 3,741 per hectare. It’s worth noting that this represents a 7% increase from the average value recorded in the year 2021.
Semester-wise Breakdown: A Tale of Two Halves
An intriguing trend emerges when comparing the first and second halves of 2022. The number of land transactions witnessed a robust 60% surge, soaring from 609 to 976 contracts. Furthermore, the surface area of land sold nearly doubled, rising from 103,000 hectares to 188,000 hectares. Additionally, the value per hectare showed a significant uptick of 20% in the latter half of 2022.
Regional Perspectives: Leading Departments in Land Transactions
Geographically, the departments of Lavalleja, Florida, and Durazno led the way, collectively operating approximately 82,000 hectares for $290 million. This accounted for 28% and 27% of the year’s total surface area and financial turnover, respectively.
Price Variances Across Departments
Significant price variations per hectare were noted across different departments. Soriano, Colonia, and Río Negro emerged as the departments with the highest average prices per hectare, recording USD 6,926, USD 6,904, and USD 5,763 respectively. Conversely, the department of Salto witnessed the lowest average price, standing at USD 2,244 per hectare.
Impact of Property Size on Land Sales
As is typically observed, rural properties between 10 and 100 hectares dominated the number of transactions, representing 68% of the total, and 17% of the total surface area traded. On the other hand, 1% of the transactions – those surpassing 2,000 hectares – accounted for 22% of the surface area sold and 18% of the operated amount.
A Historical Lens: Land Price Trends Over Time
Average values over time have oscillated between USD 386 per hectare in 2002 and USD 3,934 per hectare in 2014. The annual average price per hectare experienced a consistent rise from 2003 to 2014, after which minor fluctuations in both directions have been recorded up until the present day.
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Conclusion
Understanding the price of land per hectare in Uruguay requires a comprehensive analysis of multiple factors. The impressive growth in land sales transactions, regional variations in land prices, and historical trends all contribute to a complex and dynamic agricultural land market in Uruguay. These factors underline the importance of accurate, timely data and nuanced interpretation for potential investors, sellers, and policy-makers.