Punta del Este — Giuseppe Cipriani is wagering that Punta del Este is ready for an upgrade. The hospitality magnate is pouring $600 million into what he calls Uruguay’s most sophisticated resort development, marking the largest investment in the city’s history. The project has already notched a win, selling one of its three penthouses for $17.1 million to a European buyer.
While the development primarily targets wealthy Brazilians and Argentines, it’s drawing attention from global investors, Cipriani told Bloomberg Línea at the construction site. The project, designed by the late Uruguayan architect Rafael Viñoly, will include South America’s second-tallest tower. The scale is massive: the site contains enough steel to build a replica of the Eiffel Tower and boasts Latin America’s largest tower foundation.
Phase one, slated for completion in late 2025, will feature an upscale casino complex with dining and entertainment venues, a 27,000-square-foot event space, and a private beach club. It also includes renovating the historic San Rafael Hotel, a local landmark that city officials mandated be preserved.
The hotel portion will debut in 2026, spanning the restored San Rafael building and part of one of the three new towers. The residential offerings range from 2,200-square-foot corner units to sprawling 8,700-square-foot full-floor residences, with options for two to five bedrooms and ocean-view terraces.
“We’re bringing something Punta del Este has never seen before,” Cipriani said. The first residential tower, which breaks ground in March, has already sold 40% of its 65 units since sales began this year.
Record-Breaking Foundations
Construction is already underway on what Giuseppe Cipriani describes as “the largest foundation ever built in Latin America for a residential tower”: 86 piles measuring 1.8 meters in diameter and 30 meters in length, penetrating nine meters into the bedrock.
“We were fortunate to be granted the ability to build tall, which is essential,” explained Cipriani. “Previously, the height limit was 80 or 90 meters. What happened then? Developers were given a lot of square footage but restricted in height. So, what did they do? They built homes with low ceilings of 2.5 to 2.7 meters, which felt cramped.”
A New Standard of Luxury The apartments, starting at US$1.725 million, range from 203 square meters to 810 square meters for full-floor residences. The interior design, led by Argentine architect Hassen Balut, features nine-square-meter floor-to-ceiling windows, 3.4-meter-high ceilings, and kitchens outfitted with Wolf and Sub-Zero appliances.
“We wanted to reinterpret the atmosphere that has inspired so many people and update it for modern times,” Balut explained. Using carefully selected materials such as Italian and Greek marbles, nautically finished woods, and Italian fixtures, the design emphasizes the purity and serenity of seaside living.
The first apartments are set to be delivered to buyers starting in 2027.
Hotel Expansion in Two Phases
The hotel component of the project represents a turning point for Punta del Este, according to Giuseppe Cipriani. The first hotel, featuring 64 suites, is set to open in the summer of 2026, followed by a second property with 120 suites in the subsequent phase. All rooms in the historic San Rafael building will be suites of at least 70 square meters.
“There are practically no high-end hotels here. There are some good ones, but nothing at this level of luxury,” Cipriani remarked. “Fasano is the best we have, but it’s located farther inland, away from the beach. When someone comes to Punta del Este, they want to be on the beach.”
World-Class Amenities
The complex will offer over 17,000 square meters of amenities, including a full-service spa, a gym with Pilates and yoga studios, swimming pools with private cabanas, squash courts, pickleball courts (a sport blending elements of tennis, ping pong, and badminton), padel courts, a movie theater, a library, art and podcast recording studios, and even a bowling alley.
Residents will enjoy a dedicated Residence Director and Cipriani’s personalized concierge service, along with exclusive in-home catering and private dining experiences under the Cipriani brand.
Cipriani’s First-Ever Casino
The project marks Cipriani’s first foray into gaming in its 90-year history, with plans for more than 300 gaming stations. The venue aims to marry Italian nautical design with art deco elements, channeling the glamour of gambling’s golden age.
“This casino is a milestone for us,” Cipriani said. “We’re looking to reinvent the gaming experience by drawing on classic elements that made casinos special.”
Latin American Wealth Drives Sales
The development is drawing its traditional mix of South American buyers, particularly from Brazil, Argentina, Paraguay, and Chile. Recent months have also seen growing interest from Canadian investors.
“We’re seeing Brazilians discover Punta del Este in bigger numbers,” Cipriani said. “They view it as a nearby safe haven.” While Brazilian buyers face headwinds from the real’s slide to six per dollar, Cipriani noted that dollar-denominated real estate could serve as a hedge.
Unlike Argentina’s recent exodus under the Fernández administration, Cipriani said he hasn’t heard Brazilian buyers cite political concerns.
Fortune International Group is handling sales. “Our buyers represent Latin America’s sophisticated elite who value the international lifestyle we’re creating,” said Edgardo Defortuna, the firm’s CEO.
Return Perspectives on a Historic Investment
When asked about the expected returns on such a monumental project and whether there’s concern they might fall short, Giuseppe Cipriani expressed confidence. “The key is having time. If there’s no rush, things eventually rebound,” he said. The estimated timeline to complete the entire development is 2030, though Cipriani noted that the pace will depend on the progress of sales.
The development underscores Punta del Este’s position as a global luxury destination, supported by Uruguay’s favorable legal and fiscal framework for international investors. The country imposes no wealth or inheritance taxes and offers an attractive tax residency program, including exemptions on foreign-source income.
Optimism About Argentina
Despite having withdrawn from the Argentine market when “the country practically collapsed,” Cipriani is optimistic about the changes introduced by the new government. “I don’t know President Milei, but what he has done so far is unimaginable,” the businessman said. “If he continues on this path, Argentina will surely take off because he has worked miracles so far.”
While Cipriani currently has no concrete investment plans in Argentina, he maintains ties to the market through the Sotheby’s brand, which he has represented in the country for several years. “Argentina is undoubtedly a country I hold dear,” he remarked.
Cipriani’s Global Push
The Punta del Este development is one of the latest moves in Cipriani’s global luxury real estate expansion. The group is already making waves in Miami with a $1 billion Brickell project, Cipriani Residences Miami, which will feature one of its signature restaurants.
The company has deepened its New York presence with Cipriani Residences Manhattan and pushed into Asia with a Hong Kong development. Its European strategy targets ultra-wealthy buyers in London and Monaco, while Middle Eastern projects in Abu Dhabi blend Italian aesthetics with Gulf opulence.
The expansion builds on Cipriani’s luxury hospitality roots, which date to 1931 when the family opened the legendary Harry’s Bar in Venice. Now, the brand is betting it can replicate that success in premier real estate markets worldwide.
