What is the average rent in Montevideo?

Authored by the expert who managed and guided the team behind the Uruguay Property Pack

Yes, the analysis of Montevideo's property market is included in our pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Montevideo. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Uruguayan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Montevideo, Punta del Este, and other key areas. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What is the current average rent in Montevideo across the main districts?

Montevideo's rental market shows clear geographic pricing patterns as of September 2025.

The coastal and popular districts of Pocitos, Punta Carretas, and Malvín command the highest rents, with studios ranging from $522-$602 monthly, one-bedroom apartments from $763-$1,048, two-bedroom units from $929-$1,430, and three-bedroom apartments from $1,429-$1,950.

Central districts including Centro, Cordón, and Tres Cruces offer more affordable options with studios at $453-$498 monthly, one-bedroom apartments at $546-$596, two-bedroom units at $596-$715, and three-bedroom apartments at $763-$798. These areas provide excellent value for money while maintaining good connectivity and urban amenities.

Prime suburban areas like Carrasco represent the luxury segment, where large family homes and penthouses command $2,000-$5,000+ monthly, targeting high-income residents and international executives.

It's something we develop in our Uruguay property pack.

How does rent vary depending on the type of property, like apartments, houses, and luxury units?

Property type significantly influences rental prices in Montevideo's market.

Apartments represent the most common rental option, ranging from $530 monthly for unfurnished studios in central areas up to $1,100 monthly for furnished, newer units in premium neighborhoods. Surface area typically spans 60-120m² with rental rates of $8-$14 per square meter monthly depending on location and amenities.

Single-family houses occupy the mid-to-high price segment, with quality homes renting for $2,000-$3,000 monthly in desirable areas. Executive communities and gated developments command $3,000+ monthly, attracting families seeking security and premium amenities.

Luxury units and penthouses form the top tier, with exceptional properties in Carrasco, Punta Carretas, and Pocitos renting for $3,000-$5,000 monthly. The most exclusive penthouses can reach $10,000+ monthly, offering premium finishes, panoramic views, and concierge services.

Larger homes and luxury units command premium prices per square meter in prime zones, reflecting both location value and exclusive amenities.

What is the breakdown of average rents by property size and surface area?

Property Size	Surface Area (m²)	Monthly Rent Range (USD)
Studio	25-40	$453-$602
1-bedroom	45-65	$546-$1,048
2-bedroom	70-95	$596-$1,430
3-bedroom	100-130	$763-$1,950
Family house	150-300	$2,000-$3,000
Luxury house	250-500+	$3,000-$5,000+
Penthouse	200-400+	$5,000-$10,000+

What is the total cost for a tenant once you include fees, taxes, and other mandatory charges?

Tenants face several additional costs beyond base rent in Montevideo.

Gastos comunes (building maintenance fees) add $80-$200+ monthly depending on property type and building amenities, with luxury buildings commanding higher fees for premium services like 24/7 security, pools, and gyms.

Utility costs typically include electricity ($65-$85 monthly for a two-bedroom apartment), water ($15), gas ($5), internet ($37), and cable TV ($36). Renter's insurance adds another $10-$30 monthly for basic coverage.

Upfront costs require deposits of 1-2 months' rent held by banks or agents, with some luxury or furnished units requiring additional key money. Property taxes remain the landlord's responsibility, though rental prices often reflect these costs indirectly.

Income tax obligations fall on landlords at 12% for residents, while non-residents may face 7-25% withholding taxes, but quoted rental prices typically include grossed-up tax considerations.

How do financing costs and mortgage payments affect profitability for an owner renting out property?

Financing significantly impacts rental property profitability in Montevideo's market.

Mortgage rates currently range from 6-10%, typically denominated in USD or inflation-indexed units, with loan-to-value ratios often limited to 50-70% for investment properties. Both fixed and floating rate options are available through local banks.

Gross rental yields average 4.97% citywide as of September 2025, but net yields typically drop 1.5-2% lower after accounting for expenses, taxes, and management costs. This means leveraged properties may only achieve mild cash-flow positivity except in the highest-yield neighborhoods.

Break-even profitability requires careful calculation of mortgage payments, building expenses, property taxes, insurance, vacancy allowances, and maintenance reserves. Owners should budget for 6-10% vacancy rates in standard markets and higher rates for luxury properties.

Leveraged purchases work best in areas like Malvín, Punta Carretas, and La Blanqueada where gross yields reach 6-6.7%, providing better coverage for financing costs and operating expenses.

What are the typical rental prices for different property examples, such as a one-bedroom apartment, a family house, or a luxury penthouse?

Specific property examples illustrate Montevideo's rental pricing structure clearly.

A studio apartment in Centro or Cordón typically rents for $530-$600 monthly, offering affordable urban living with good public transport access and proximity to employment centers.

One-bedroom apartments in desirable areas like Pocitos or Malvín command $763-$1,100 monthly, attracting young professionals and couples seeking modern amenities and coastal proximity. These properties offer the best balance of affordability and lifestyle appeal.

Two-bedroom apartments in premium locations like Pocitos or Carrasco range from $929-$1,430 monthly, suitable for small families or professionals requiring home office space. Family houses in upscale neighborhoods like Carrasco or Malvín rent for $2,000-$3,000 monthly, providing gardens, parking, and proximity to international schools.

Luxury penthouses in Carrasco represent the market's pinnacle, commanding $5,000-$10,000+ monthly with panoramic views, premium finishes, and exclusive building amenities targeting high-net-worth individuals and executives.

What are the main renter profiles in Montevideo right now, and what are they looking for?

Montevideo attracts diverse renter segments with specific preferences and requirements.

1. **Young professionals and small families** seek 1-2 bedroom apartments in safe, walkable districts with good connectivity to business centers and entertainment areas.2. **International students and digital nomads** prefer furnished, affordable units in central areas with reliable internet and proximity to universities or co-working spaces.3. **Executives and diplomats** target premium properties or luxury houses in secure neighborhoods like Carrasco, often requiring proximity to international schools and business districts.4. **International families from Argentina, Brazil, and Europe** favor spacious houses or large apartments in family-friendly areas with access to quality education and healthcare facilities.5. **Remote workers and business travelers** increasingly use short-term rentals, driving demand for well-appointed, centrally-located properties with modern amenities and flexible lease terms.

High demand consistently focuses on properties offering security, modern amenities, and strategic locations, with families particularly valuing proximity to international schools and expat communities.

How do vacancy rates differ depending on property type and area?

Vacancy patterns vary significantly across Montevideo's property segments and locations.

Standard long-term rental markets in main districts experience 6-10% vacancy rates, with higher rates for luxury and large units due to limited demand pools, while well-located 1-2 bedroom apartments maintain lower sub-5% vacancy rates reflecting strong demand from young professionals and couples.

Short-term and Airbnb markets show different patterns, with average occupancy rates of 67% and significant seasonal variations. Prime months from December through March book up quickly due to summer tourism and business travel, while shoulder seasons see higher availability.

Luxury properties and executive homes experience higher vacancy risk due to limited tenant pools and longer decision-making processes, often requiring 2-4 months to secure qualified tenants willing to pay premium rents.

Central areas maintain more consistent occupancy due to diverse tenant demand, while peripheral luxury developments may face extended vacancy periods during economic uncertainty or seasonal downturns.

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.

What kind of yields can investors expect today, and how do they vary across neighborhoods and property categories?

Rental yields in Montevideo show clear geographic and property-type variations as of September 2025.

Top-performing neighborhoods including Malvín, Punta Carretas, and La Blanqueada deliver gross yields of 6-6.7%, representing the market's best opportunities for income-focused investors. These areas combine strong rental demand with reasonable property acquisition costs.

Mid-tier areas like Pocitos, Centro, and Cordón generate gross yields of 5-5.7%, offering good balance between yield and capital appreciation potential. These established neighborhoods maintain consistent tenant demand and moderate price growth.

Citywide gross yields average 4.97% in 2025, down from 5.37% in 2024, reflecting property price increases outpacing rental growth. Net yields typically range 2.5-3.5% after accounting for expenses, taxes, management fees, and vacancy allowances.

Property category performance varies significantly, with mid-range apartments in high-demand areas outperforming luxury properties that command lower yields due to higher acquisition costs and limited tenant pools.

How have both rents and yields changed compared to one year ago and compared to five years ago?

Montevideo's rental market has shown modest but consistent evolution over recent periods.

The 12-month trend shows a small decrease in gross yields from 5.37% in Q2 2024 to 4.97% in September 2025, primarily driven by property price appreciation outpacing rental growth rather than declining rents. This compression reflects increased investor interest and market maturation.

Over the five-year period from 2020-2025, yield trends have moved modestly downward as the market stabilized following economic uncertainties. Rent levels have generally kept pace with inflation across most segments, maintaining real purchasing power for property owners.

The prime luxury segment has experienced more volatile performance, with exceptional properties seeing significant jumps in rental potential while mid-market properties have shown steadier, more predictable growth patterns.

Market fundamentals remain solid despite yield compression, with consistent demand growth supporting rental stability and gradual price appreciation across most neighborhoods and property types.

It's something we develop in our Uruguay property pack.

What are the smartest choices today if you want to maximize returns, and how does this differ between short-term and long-term rentals?

Strategic property selection significantly impacts investment returns in Montevideo's current market.

Short-term rental strategies offer higher gross returns through Airbnb and similar platforms, with average occupancy rates of 67%, daily rates around $55, and annual revenue potential of $13,000 per unit based on June 2024-May 2025 data. However, these require intensive management, competitive positioning, and prime locations to succeed.

Long-term rental strategies provide more stable returns with lower management complexity, delivering net yields of 2.5-5% depending on location and property type. These investments offer predictable cash flows and reduced operational demands.

The smartest current choices focus on well-located, modern 1-2 bedroom apartments in Pocitos, Punta Carretas, and Malvín, which perform well in both rental strategies due to strong demand from professionals, couples, and short-term visitors.

Carrasco and premium zones offer blue-chip luxury investments with lower yields but higher stability and capital appreciation potential, though they carry increased vacancy risk and longer tenant acquisition periods.

How does Montevideo compare in terms of rents, yields, and opportunities with other similar big cities in the region or globally?

Montevideo's rental market positioning reflects both regional advantages and global competitiveness.

Compared to regional peers, Montevideo commands higher rent levels than post-inflation Buenos Aires while remaining below Santiago's premium market pricing. Rental yields compare favorably to Buenos Aires and match or slightly exceed performance in similar-sized Latin American cities, though they trail prime zones in cities like Bogotá.

Against global peers, Montevideo offers moderate net yields within acceptable ranges for stable emerging markets. The city's primary investor attractions include political stability, transparent legal systems, and low regulatory risk compared to many regional alternatives.

Market opportunities center on both traditional family housing and compact executive accommodation targeting the growing expat and digital nomad communities. The city benefits from Argentina's economic instability, attracting cross-border investment and relocation demand.

Montevideo's competitive advantages include currency stability, established property rights, reasonable acquisition costs, and growing international recognition as a lifestyle destination, positioning it well for continued moderate growth and stable investment returns.

It's something we develop in our Uruguay property pack.

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.

Sources

1. Global Property Guide - Uruguay Rental Yields
2. The LatinVestor - Montevideo Property
3. The LatinVestor - Average House Price in Uruguay
4. International Living - Cost of Living in Uruguay
5. The LatinVestor - Montevideo Price Forecasts
6. Global Property Guide - Uruguay Taxes and Costs
7. Real Estate in Uruguay - Property Taxes Guide 2025
8. Airbtics - Annual Airbnb Revenue in Montevideo