Uruguay: Real Estate firms denounce unfair competition

Over 70 Real Estate firms have shut down this season in the East zone of Uruguay. Many of their owners have turned to the informal sector, while others have switched to another business. The fall is blamed by the remaining agencies on an increase in “unfair competition.” Doormen, waiters, white-collar professionals and even politicians now compete with them as they make money on the side.

“Real Estate companies are regulated, but not direct sales. In the case of politicians, since they have influence, they can get to areas others can. If the opportunity presents itself they bring the parties together and charge a commission” said Francisco Pistlancic, president of the Punta del Este and Maldonado Real Estate Association.

Gabriel Conde, president of the Uruguay Chamber of Real Estate, has said that “the formal sector is going through a crisis. Companies have been closing and moving to the informal sector” he said. “We are fighting for legal regulation. In 2012 we introduced a bill. We want the market to be reduced to two sides – owners and Real Estate companies. Today, most transactions go through informal channels, where sellers don’t follow regulations or fulfil their tax obligations.”

Full content: El País

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