Uruguay is experiencing significant growth, driven by economic stability, tax benefits, and strategic infrastructure. Which areas of the neighboring country led this expansion, what was the profitability, and what were the rental prices?
A private report confirmed that Uruguay is a new logistics hub, with its logistics and industrial market experiencing significant growth. This development is attributed to economic stability, tax benefits, and strategic infrastructure, which position the country as an attractive destination for companies across the region, especially from Argentina.
According to an analysis by the consulting firm CBRE, Uruguay is a new logistics hub because its sector is controlled by a small group of developers, primarily industrial park owners. This creates a structured environment with high occupancy rates in key parks and substantial expansion potential in strategic areas such as Canelones and Montevideo.
The report indicates that the demand for logistics spaces in Uruguay has grown steadily, driven by the country’s tax advantages for export and import activities. This phenomenon has led to high occupancy rates in major industrial parks, which seek to expand to meet market demands. However, the supply is limited, as most developments are built under “built-to-suit” contracts tailored for specific clients.
Karina Longo, research manager at CBRE Argentina, explained that this development model caters to companies requiring smaller logistics spaces but with top-tier services. She added, “By 2025, 38,500 square meters of additional space are expected to enter the market, although this will be insufficient to meet the current growing demand.”
Strategic Areas and Industrial Relocation
Uruguay is a new logistics hub thanks to its industry and logistics sector concentration in Montevideo, Canelones, and San José, which boast strategic road infrastructure. Montevideo, the country’s capital and main port, plays a key role in regional trade, while national and international routes efficiently connect Uruguay with its neighbors, Argentina and Brazil.
The report highlights that heavy traffic restrictions within Montevideo, implemented as part of an urban mobility plan, have encouraged industries to relocate outside the city. The most prominent industrial parks and logistics centers are along national and international corridors. The triangle formed by routes 101, 8, and the Perimetral 102 hosts the largest surface area dedicated to such developments, with 4.8 million square meters distributed across six industrial parks, including Zonamérica and Parque de las Ciencias.
The Impact of Free Zones
Free zones in Uruguay are a cornerstone of the logistics sector’s development. Regulated by Law 15,291, these areas offer full tax exemptions, including income, property, value-added taxes, and customs duties. This framework allows companies to engage in activities such as product transformation, assembly, labeling, and storage without time restrictions, making them attractive to companies looking to optimize costs and expand operations.
Among the most notable free zones is Zonamérica in Montevideo, which hosts over 460 companies and generates around 7,400 jobs. In Canelones, Parque de las Ciencias specializes in biotechnology and pharmaceuticals, while in San José, Zona Franca Libertad benefits from its strategic location on Route 1, part of the road network connecting Argentina, Brazil, Chile, and Paraguay.
Market Consolidation and Concentration
CBRE’s report explains that the surveyed areas in Uruguay, a new logistics hub, comprise 7.5 million square meters designated for industrial and logistics parks, 2.15 million of which are in free zones, representing 29% of the total area.
Highlights in the Route 1 corridor include Polo Oeste and Zona Franca Libertad, which account for 1.1 million square meters or 15% of the total area.
To analyze the consolidation of these spaces, CBRE developed a ratio measuring the occupancy of industrial parks based on areas designated for services and operations and built logistics spaces. This ratio considers the surface area used for park services, such as roads, parking lots, common areas, and container and automobile yards. “This indicator helps identify opportunities for improvement and expansion for companies operating within these parks,” Longo explained.
Prices and Profitability
Uruguay is a new logistics hub offering options for purchasing or renting logistics properties. According to Nicolás Ferrero, sales brokerage consultant at CBRE Argentina, rental prices range from USD 6 to 8 per square meter per month, although availability is limited. The “built-to-suit” model dominates the market, leaving few options for purchasing properties as an investment strategy.
Ferrero noted, “By the end of 2025, more than 25,000 square meters of space are expected to be added, although high demand could lead to pre-sales, significantly reducing availability upon completion.”
Opportunities for Argentine Companies
Uruguay is a new logistics hub that has become an attractive destination for Argentine companies looking to expand or relocate. According to Karina Longo, the country offers key advantages such as economic stability, top-tier road infrastructure, and legislation to attract foreign investment.
Key incentives include the Investment Promotion Law, which provides tax exemptions and ensures equal conditions for local and foreign investors, and the Industrial Parks Law, which exempts taxes on assets used in these developments. “Moreover, free zones allow operations without national taxes, facilitating the export of goods and services,” Ferrero clarified.
The industries of Argentine companies operating in Uruguay include breweries, soft drinks, metalworking, construction, technology, chemicals, storage, and distribution, among others.
For Argentine companies, Uruguay is a new logistics hub that represents an opportunity to expand into a neighboring country with excellent road infrastructure and premium logistics spaces comparable to the best in Argentina.
Ferrero concluded, “Sustained economic stability over recent years strengthens this appeal.”
Conclusion
Uruguay’s emergence as a regional logistics hub underscores its strategic value for companies seeking stability, efficiency, and connectivity. With its economic stability, robust legal framework, advantageous tax incentives, and prime infrastructure, Uruguay is a new logistics hub offering unparalleled opportunities for businesses aiming to optimize operations and secure a foothold in a competitive regional market.