Uruguay may not have quite made it to the finals in the World Cup, but the country is certainly looking like a champ on the economic side. With strong, sustainable economic growth—without a lot of froth in the mix—Uruguay is looking like a model nation right now.

International Living has been hyping the country for quite a while as a good property investment, with one of the editors there putting his money where his mouth is and taking up residence. Adding more confirmation that this is a real estate market on the rise is this article from InvestBA: Maldonado construction reaches new heights.

If the current pace continues the rest of the year, construction permits will be up more than 14% in the seaside Maldonado state, which includes popular Punta del Este as well as José Ignacio. In essence, a pattern is playing out we’ve seen over and over around the world: once one beach area gets too popular and prices get too high, construction fans out to other points beyond. In this case, it keeps moving north to other beaches.

Is this a good time to get in? I’m no Uruguay expert, but for now it looks like a relatively safe bet if you want beachfront property (or close to it) in a stable part of South America with good infrastructure and government.

When you’re ready to check out the region, see our reviews of the best hotels in Uruguay.

In a move designed to lure more Americans to Costa Rica, the country is designating certain areas with good medical facilities to be “retirement clusters.” The country wants to better compete with Panama and Mexico, both destinations that have lured lots of retirees with the combination of lower costs and good hospitals.

The Tico Times reported the story back in February (see a reprint here), so I’m late to the party on this, but it has interesting ramifications for the future. Anecdotal evidence says foreign investment in Costa Rica has declined during this recession, especially in areas where the property bubble had spread south. This government program aims to spread out that investment to more areas. The zones include Lake Arenal, Miramar, Cartago, and Rincon de la Vieja in Guanacaste. According to this story on Mathaba, getting residency should become easier.

The concept is simple, and includes slashing red tape to the minimum by providing one-stop residence permits at the Migration Directorate, so that foreigners, especially the well-heeled, can come to live in the country. Tax exemptions on real estate and vehicles are on offer, and a promotional campaign aimed at older adults abroad will be run by the Costa Rican Institute of Tourism (ICT).

Time will tell whether the plans turn to reality and whether there is longevity in the mix. Costa Rica was the first country to launch big incentives for foreign retirees, but the country has become less attractive over time as those incentives were removed and real estate prices kept rising. If this program actually works, it could turn things around.

Don’t pull a House Hunters International move though and just fly down for a weekend to buy a house. Spend some time in a Costa Rica rental first and do your homework. Keep in mind too that the U.S. dollar is at its lowest exchange rate in two years in Costa Rica, which may limit your bargaining power for anything sold by a local company. Take your time.

Get info here on luxury travel in Costa Rica.

The popularity of different sections of Luxury Latin America will ebb and flow with the seasons and with which destinations are getting media coverage—good and bad. When we started, Mexico had no trouble ruling the roost, but it has declined a bit in the past year with all the negative cable news attention on the border zone problems. Argentina was riding high for a while, but has ebbed since the hefty new entry fee was introduced earlier this year and the political situation has become more bizarre. Specific hotels spike for a month when they get featured in a glossy magazine, then drop again when the new flavor comes along next issue.

Here are the most popular sections and articles for the past 30 days, then specific hotels getting the most hits.

Most popular pages on Luxury Latin America:

Luxury hotels in Belize
Luxury hotels in Panama
Luxury Tour Reviews
Real estate in Cuenca, Ecuador
Luxury hotels in Argentina
Cruising the Galapagos Islands
Luxury hotels in Los Cabos
Real estate in Boquete, Panama
Arriving at Machu Picchu in Style
Luxury hotels in Costa Rica

Most popular hotels and resorts on Luxury Latin America:

Hotel Garzon – Uruguay
Azul Resort – Belize
Cayo Espanto – Belize
Banyan Tree Mayakoba – Mexico
Bristol Buenaventura – Panama
Turtle Inn – Belize
Capella Pedregal Los Cabos – Mexico
Cavas Wine Lodge – Argentina
Barefoot Cay – Honduras
Morgan’s Rock – Nicaragua

Last year I interviewed one of our business partners, Jamie Schectman, about renting a house in the Bariloche region of Patagonia. Jamie and his wife are American, but for the past few years they’ve been watching some of the world’s most incredible sunrises and sunsets over the Andes Mountains from their home beside the lake.

A new business opportunity is calling them from the bottom of the Earth to the top and they are making plans to return to Alaska. They are putting their amazing property up for sale and if my life situation were different I’d be tempted to buy it myself. Listed at $379,000 it includes land, three separate homes, and priceless views.

“Located in the exclusive Llao Llao neighborhood, outside of Bariloche, Patagonia, Argentina, this impressive property includes three houses. All enjoy their own amazing vistas of Lake Nahuel Huapi, Victoria Island, the Andean Crest and Chile, as well as individual privacy, private parking, and fenced landscaping with native trees and wildflowers.”

The two additional houses generated $21,000 of income last year through Bariloche Vacation Rentals. If you didn’t live there full time you could rent out the main house as well.

See the full scoop, with lots of photos, at this Patagonia View investment property page. There’s clear title, minimal closing costs, rental permits in place, and few hassles to purchasing here. To see what life has been like in this spot for the couple, see the Living in Patagonia blog.

It looks like the U.S. home foreclosure wave is climbing into the upper ranks. A new story in the Wall Street Journal out today is titled, Foreclosures Hit Rich and Famous.

There’s nothing modest about these houses, with outstanding loads of $5 million or more.

-a Tudor mansion in Bel-Air belonging to film star Nicolas Cage

- a 14-acre Westchester mansion belonging to a former Merrill Lynch executive who headed up the Latin America division

- a Manhattan condominium owned by Italian film producer Vittorio Cecchi Gori, sold in a foreclosure auction for $33.2 million

The article says that in February alone, 352 homes nationwide in this $5 million+ category “…were scheduled for foreclosure auction, the final step before a bank acquisition.”

So what does this mean for Latin America? If you want my advice, tread carefully in the obvious bubble markets fueled by lots of speculative California money, places like Los Cabos, Puerto Vallarta, and the northern Pacific developments of Costa Rica. Or at least drive a hard bargain there to be sure you’re getting the true market rate. Plan to use your home a lot as the high-end rental market and near-term appreciation are both looking dicey for a while.

See our Latin America real estate stories for more.