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Everything you need to know before buying real estate is included in our Uruguay Property Pack
Uruguay's property market offers diverse pricing across regions, from affordable inland towns to premium coastal areas.
)(House prices vary significantly between Montevideo's established neighborhoods, Punta del Este's luxury coastal properties, and the country's more budget-friendly interior regions.)If you want to go deeper, you can check our pack of documents related to the real estate market in Uruguay, based on reliable facts and data, not opinions or rumors.
Montevideo averages $2,420-$3,500 per square meter while Punta del Este reaches $4,000-$10,000+ per square meter for luxury properties.
Inland towns offer significantly lower prices at under $1,750 per square meter, making them attractive for budget-conscious buyers.
| Region | Average Price per sqm (USD) | Typical Property Price Range |
|---|---|---|
| Montevideo (Prime Areas) | $3,500-$4,260 | $167,000-$500,000+ |
| Montevideo (Average Areas) | $2,420-$3,500 | $95,000-$300,000 |
| Punta del Este | $4,000-$10,000+ | $150,000-$20,000,000+ |
| Inland Towns | Under $1,750 | $50,000-$200,000 |
| Transaction Costs | 7-8% of purchase price | Includes all fees and taxes |
| 2024 Price Growth | +2.9% (Montevideo) | +8-12% (Punta del Este luxury) |
| Rental Yields | 4-5% (Montevideo) | 5-12% (Punta del Este short-term) |
What are the average house prices in Montevideo, Punta del Este, and inland towns?
Montevideo's residential market shows clear price differentiation across neighborhoods, with average prices ranging from $2,420 to $3,500 per square meter.
Prime neighborhoods like Carrasco command the highest prices at $4,260 per square meter, followed by Punta Carretas and Punta Gorda which both exceed $4,000 per square meter. Pocitos and Malvín sit in the mid-tier at around $3,500 per square meter, while more affordable areas like Las Acacias start at $750 per square meter and Peñarol/Lavalleja at $875 per square meter.
Punta del Este represents Uruguay's luxury coastal market with standard properties averaging $4,000 per square meter, though beachfront luxury properties can reach $7,000 to $10,000 per square meter. Entry-level studios begin around $150,000, while luxury beachfront homes range from $2 million to over $20 million in exclusive areas like La Barra and José Ignacio.
Inland towns offer significantly lower property prices, typically running 50% below coastal areas with most properties priced under $1,750 per square meter. Interior regions including Colonia, Salto, and Paysandú provide budget-friendly options for buyers seeking affordability over coastal proximity.
The median home price in Montevideo sits between $167,000 and $180,000 for standard apartments and houses.
How do house prices vary between apartments, single-family homes, and rural properties?
Apartments dominate Uruguay's urban housing market, particularly in Montevideo where they represent the most common property type.
In Montevideo, apartment prices span from $95,000 for basic studios to over $1 million for luxury penthouses in prime locations. Punta del Este apartments start higher with furnished studios from $125,000 and two-bedroom units from $200,000, reflecting the area's premium positioning.
Single-family homes command higher absolute prices due to their larger size and land components. Montevideo's median single-family home price aligns with the overall market at $167,000 to $180,000. Punta del Este single-family homes begin around $200,000 for modest properties, escalating to $20 million for luxury coastal villas.
Rural properties offer the most affordable entry point into Uruguay's real estate market, with large plots and houses available at substantial discounts compared to urban areas. Farmland presents additional investment opportunities, with prices varying significantly based on location, soil quality, and infrastructure access.
It's something we develop in our Uruguay property pack.
What is the average price per square meter in cities versus rural areas?
| Location Type | Average Price per sqm (USD) | Price Range |
|---|---|---|
| Montevideo Prime Areas | $3,500-$4,260 | Carrasco, Punta Carretas, Pocitos |
| Montevideo Standard Areas | $2,420-$3,500 | Most residential neighborhoods |
| Montevideo Budget Areas | $750-$875 | Las Acacias, Peñarol, Lavalleja |
| Punta del Este Standard | $4,000+ | General coastal properties |
| Punta del Este Luxury | $7,000-$10,000+ | Beachfront premium locations |
| Inland Towns | Under $1,750 | Interior regions, rural areas |
| Rural/Farmland | Varies significantly | Depends on location and land use |
What are the total purchase costs including all fees and taxes?
Total transaction costs for property buyers in Uruguay typically range from 7% to 8% of the purchase price, covering all mandatory fees and taxes.
Real estate agent fees constitute the largest component at 3.28% plus VAT, totaling approximately 4% of the purchase price. Notary fees add another 3% plus VAT, though some agents offer reduced notary fees of 1.5% plus VAT as part of their service packages.
Additional mandatory costs include deed registration stamp duties at 0.55% of the purchase price, registry and tax certificate fees ranging from $600 to $800, and the property transfer tax (ITP) at 2% of the fiscal value, which typically runs lower than the actual market value.
For a typical $200,000 property purchase, buyers should budget approximately $14,000 to $16,000 in total transaction costs. A $500,000 property would incur around $35,000 to $40,000 in fees and taxes, while a $100,000 property would cost roughly $7,000 to $8,000 in additional expenses.
These costs remain consistent across all property types and locations throughout Uruguay, making them predictable for budget planning purposes.
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How have house prices changed over the past 5 years and 12 months?
Uruguay's residential property market has demonstrated steady growth over the past five years, with Montevideo experiencing annual price increases ranging from 0.9% in 2023 to a peak of 9.7% in 2021.
The most recent 12-month period through 2024 shows Montevideo property prices rising 2.9%, indicating a return to moderate growth following the more volatile pandemic years. This represents a healthy, sustainable pace of appreciation that aligns with Uruguay's stable economic fundamentals.
Punta del Este has outperformed the national average with luxury properties seeing 8% to 12% appreciation over the past year, driven by strong international demand and limited supply of premium coastal properties. The luxury segment has proven particularly resilient, with high-end beachfront properties maintaining strong value growth.
Interior regions have shown more modest but consistent growth, with some areas experiencing up to 13% increases in 2024 as buyers seek value alternatives to coastal markets. This trend reflects growing interest in Uruguay's inland areas as affordable investment opportunities.
The five-year trend shows Uruguay's property market has maintained steady appreciation without the dramatic boom-bust cycles seen in many international markets, making it attractive for long-term investors seeking stable returns.
What is the forecast for Uruguay house prices over 1, 5, and 10 years?
Uruguay's property market outlook remains positive across all time horizons, with moderate to strong growth expected in different regions and price segments.
Over the next year, Montevideo properties are projected to appreciate 2% to 4%, maintaining the steady growth pattern established in recent years. Punta del Este is expected to see stronger gains of 6% to 10%, particularly in luxury and beachfront segments where international demand continues to exceed supply.
The five-year forecast shows annual growth rates of 3% to 5% for Montevideo's residential market, supported by Uruguay's political stability, favorable investment climate, and growing expatriate community. Punta del Este is projected to maintain 6% to 10% annual appreciation, while emerging coastal areas could see 10% to 15% annual growth as development and infrastructure improvements attract new buyers.
Ten-year projections indicate continued steady growth across all segments, with Uruguay's real estate market benefiting from the country's reputation for safety, stable governance, and attractive residency policies for foreigners. Economic diversification and infrastructure development are expected to support long-term property value appreciation.
As we reach mid-2025, market fundamentals remain strong with low unemployment, controlled inflation, and continued foreign investment supporting sustainable property market growth throughout the forecast period.
How do Uruguay property prices compare to Portugal and Costa Rica?
Uruguay's property market positions competitively against other popular expat destinations, offering similar lifestyle appeal with distinct pricing advantages in certain segments.
Portugal's major cities like Lisbon and Porto show comparable pricing to Montevideo's prime areas, with both markets targeting similar international buyer demographics. However, rural Portugal often provides more affordable options than Uruguay's interior regions, though Uruguay offers lower overall rental costs and living expenses.
Costa Rica presents a mixed comparison, with higher rental markets than Uruguay but similar or higher property prices in popular expat areas along the Pacific coast. Uruguay's advantage lies in its lower cost of living, more favorable tax structure for residents, and simpler property ownership laws for foreigners.
Uruguay stands out for offering direct property ownership rights to foreigners without restrictions, unlike some competing markets that require local partnerships or corporate structures. The country's stable currency policies and banking system also provide additional security for international property investors.
All three markets appeal to similar demographics seeking safety, lifestyle quality, and investment potential, but Uruguay offers the most straightforward ownership process and potentially the most stable long-term economic environment.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Uruguay versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which areas are most expensive, up-and-coming, or budget-friendly?
Uruguay's property market clearly segments into distinct price tiers, with luxury areas commanding premium prices and emerging neighborhoods offering growth potential.
The most expensive areas center on Carrasco in Montevideo and the exclusive coastal enclaves of La Barra and José Ignacio near Punta del Este. These neighborhoods attract Uruguay's wealthiest residents and international buyers seeking premium amenities, security, and prestige locations.
Up-and-coming areas present the best opportunities for capital appreciation, including Ciudad Vieja in Montevideo which is experiencing significant gentrification and infrastructure investment. Coastal areas like Manantiales and Atlántida show strong growth potential as they develop tourism and residential infrastructure. Interior cities like Salto and Paysandú are emerging as value plays for buyers seeking affordability with growth potential.
Budget-friendly areas offer entry points for cost-conscious buyers, including Las Acacias and Peñarol in Montevideo for urban properties under $1,000 per square meter. Coastal options include Piriápolis, which provides beach access at significantly lower prices than Punta del Este. Interior towns throughout Uruguay offer the most affordable properties, though with limited rental income potential.
Rocha represents an interesting middle ground, offering coastal proximity at interior pricing as infrastructure development gradually improves accessibility and amenities.
What are the best options for buyers planning to live in the property?
Residential buyers should focus on established neighborhoods with strong infrastructure, amenities, and community services that support daily living needs.
In Montevideo, Pocitos offers the ideal combination of urban convenience, beach access, and established expat community, making it perfect for international residents. Punta Carretas provides upscale urban living with excellent shopping, dining, and cultural amenities. Carrasco suits buyers seeking luxury residential living with proximity to the airport and premium services.
For coastal living, Punta del Este offers year-round amenities and international community, though seasonal price fluctuations affect both property values and living costs. Piriápolis provides a more affordable coastal alternative with good infrastructure and growing expat presence.
Interior options like Colonia appeal to buyers seeking tranquil lifestyle with historic charm and lower living costs. These areas work best for retirees or remote workers who prioritize affordability and peaceful environments over urban amenities.
Climate considerations favor coastal areas for year-round comfort, while interior regions can experience more temperature variation but offer authentic Uruguayan cultural experiences and significantly lower living expenses.
It's something we develop in our Uruguay property pack.
What are the smartest investment options for rental income?
Rental investment success in Uruguay depends on matching property types and locations to target tenant demographics and seasonal demand patterns.
Long-term rental investments perform best in Montevideo neighborhoods like Pocitos and Ciudad Vieja, where consistent demand from professionals, students, and expatriates supports 4% to 5% gross rental yields. These areas benefit from year-round occupancy and stable tenant profiles.
Short-term rental investments show strong potential in Punta del Este, where peak season occupancy rates reach 90% to 95% and properties can achieve 5% to 12% gross yields depending on location and property quality. The key is securing properties within walking distance of beaches and entertainment areas.
Montevideo's short-term rental market is developing with 47% to 67% average occupancy rates, making it suitable for investors seeking moderate yields with lower seasonality risk compared to coastal markets. Business travelers and weekend visitors from Argentina drive consistent demand.
Furnished apartments command higher rents than unfurnished properties across all markets, though they require higher initial investment and ongoing maintenance. Properties near universities, business districts, and transportation hubs typically achieve the most reliable occupancy rates.
Successful rental investors focus on properties requiring minimal ongoing management while maximizing occupancy through strategic location selection and appropriate amenity levels for target tenant demographics.
Which strategies work best for profitable resale investments?
Profitable resale strategies in Uruguay focus on identifying areas undergoing transformation and timing market cycles effectively.
Gentrifying neighborhoods like Ciudad Vieja in Montevideo offer the highest potential returns, with properties benefiting from ongoing urban renewal projects and increasing demand from young professionals. Buying during early gentrification phases and holding for 3 to 5 years typically maximizes appreciation potential.
Emerging coastal areas including Manantiales and Atlántida present opportunities to capitalize on infrastructure development and growing tourism demand. These markets require longer holding periods of 5 to 7 years but can deliver substantial returns as areas develop critical mass of amenities and services.
Infrastructure-driven investments near planned developments, new transportation links, or tourism projects can generate significant returns, though they require careful research and patience as development timelines can extend beyond initial projections.
Value-add opportunities exist in properties requiring renovation or modernization, particularly in established neighborhoods where location value exceeds current property condition. These investments work best for buyers with construction experience or reliable local contractor networks.
Timing market cycles remains crucial, with the best buying opportunities typically occurring during economic uncertainty when motivated sellers create pricing inefficiencies that patient investors can exploit for long-term gains.
Can you provide real-world purchase examples with total costs?
| Property Type | Location | Purchase Price (USD) | Transaction Costs (USD) | Total Investment (USD) |
|---|---|---|---|---|
| Studio Apartment | Montevideo Centro | $95,000 | $7,600 | $102,600 |
| 2-Bedroom Apartment | Punta del Este | $200,000 | $16,000 | $216,000 |
| 3-Bedroom House | Montevideo Carrasco | $500,000 | $40,000 | $540,000 |
| Rural Property | Paysandú Interior | $120,000 | $9,600 | $129,600 |
| Luxury Beachfront | José Ignacio | $2,000,000 | $160,000 | $2,160,000 |
| Budget Apartment | Montevideo Las Acacias | $65,000 | $5,200 | $70,200 |
| Coastal House | Piriápolis | $180,000 | $14,400 | $194,400 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Uruguay's property market offers compelling opportunities across diverse price points and investment strategies.
Whether seeking coastal luxury, urban convenience, or rural tranquility, buyers can find options matching their budget and lifestyle preferences while benefiting from the country's political stability and favorable investment climate.
It's something we develop in our Uruguay property pack.
Sources
- TheLatinvestor - Montevideo Property Market
- Global Property Guide - Uruguay Price History
- TheLatinvestor - Uruguay Price Forecasts
- TheLatinvestor - Uruguay Real Estate Market
- TheLatinvestor - Punta del Este Property
- Destinations by Leading RE - Best Uruguay Locations
- Destinations by Leading RE - Uruguay Investment Guide
- International Living - Uruguay Cost of Living
- Real Estate in Uruguay - Transaction Costs
- Global Property Guide - Uruguay Home Price Trends