Wednesday 15 February 2017
ECONOMY AND BUSINESS REAL ESTATE
Sur and Palermo Neighborhoods, in process of revitalization
February 15th, 2017 05:00READING TIME: 5 MINUTES
Based on the law that promotes the investment of social housing, these neighborhoods began to charge height with new buildings, along with a population growth and gastronomic offers
The proximity to the river, to the city center and universities, added to its profile of traditional neighborhood summarize the attractions of the neighborhoods of Montevideo "Sur and Palermo", that in 2014 found a kind of catapult on Law 18,795 that promotes investment in social housing.
After the arrival of investors, the renewed air began to attract families and young people to those neighborhoods that for more than 70 years had lost population. For the founding member of JVA, Julio Villamide, it is a matter of waiting for the next census to quantify the demographic movement.
For the mayor of municipality B, Carlos Varela, the law of tax benefits for housing construction, "generated that a significant number of Municipal Registers that were in disuse and even some old houses have come to life and are in recycling or under construction".
"This has generated permanence and growth in the neighborhood ", he added. According to Varela, "it does not make sense to extend the city more towards the periphery without the services, with the costs that it has", and what is sought is "to promote the construction of housing in urban areas with all services".
On the other hand, Villamide indicated that the real estate growth has also revitalized the gastronomic and commercial offer. That explains why today in these neighborhoods and their surroundings, such as Cordón and Rodó Park, are concentrated bars and restaurants, several of which point to a young audience. "Several small restaurants have appeared near these locations", pointed out Villamide.
All this, according to Villamide, led to increase the value of the square meter. According to the price index of housing in Montevideo prepared by El Observador, the increase was 1.2% in 2016 compared to the previous year.
US$ 2.329 is the average value per square meter in buildings in Montevideo neighborhoods Sur and Palermo.
"We had predicted that the areas with the greatest chance of development were those close to the river, to a park such as Rodó Park and the demand finally went clearly there", he pointed out. In this line, he knows of people who lived in Carrasco Neighborhood and whose "world" often ended up in Luis Alberto de Herrera Street, who have migrated to Palermo or Sur Neighborhoods. "They discovered that the stereotype they had of this area was wrong", he added.
Those who come to these neighborhoods are mostly Uruguayans, but it is also surprising the influx of families and investors from abroad. The operators consulted agreed that the constant is given that 50% of what is marketed in each building is destined to the acquirer's dwelling and the other half as a real estate investment.
The "Rumbo Atlántico" Group of real estate companies of Spanish and Andorran origin arrived in Uruguay to develop, build and commercialize - so far - the Towers “Atlántico I and II”, protected by the Law of Social Interest Housing. "The real estate market in Spain is a bit slow and that has made many people come to invest and build in Uruguay", said Álvaro Ferreira, which it is part of group of investors.
The tower “Atlántico II” is a project in process located on Canelones St. between Salto St. and Lorenzo Carnelli St. Ferreira said that the sale began five months ago and they already carry 65% of the apartments sold.
"Many foreigners have bought. For example, about four Venezuelan families bought without knowing each other", he told. The value of the apartments ranges between US $ 120,000 and US $ 140,000.
Give value to the neighborhood
The project, which began its works in 2013 and inaugurated the first tower at the end of 2015, has two towers (one of 25 and one of 12 floors), and a third building of four floors. It has gym, children's play area, optional parking, as well as solarium and barbecues.
"We understood that it was an area that needed revitalizing. It was a very large lot and we thought it could be a project in order to provide quality of life", said Alejandra González, who belongs to the commercial department of Campiglia. The ground floor of the complex will have commercial premises (in one of them was installed the convenience store “Frog”). "All works generate value and also give value to what we do", pointed out González. Thus, she assures that the properties that are around the new buildings were also valued.
Located in the Sur Neighborhood, on the corner of Salto and Maldonado streets is the Rimbaud building, another real estate development in the social interest regime that began to be built in mid-2016. So far, sales reached 40% of their apartments. From “Arquitectura Uruguaya” Constructions, the combination of the tranquility of the neighborhood and the proximity to the Center was enhanced, and it was recalled that the law of social housing made this area attractive on others like Pocitos and Punta Carretas neighborhoods.
A turning point
Varela added another project that, if materialized, "it will be an important milestone" for the development of the link with Ciudad Vieja neighborhood: the offices and passengers terminal of Buquebus next to the dam Mauá (South Rambla and Andes St.).
Source: El Observador - Por María Inés Fiordelmondo