What is the average rent in Uruguay?

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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 Uruguay. If you'd like to learn more about us, you can check our presentation page.

What's the current average rent in Uruguay by property type?

As of September 2025, Uruguay's rental market shows distinct pricing across different property categories.

Apartments in Montevideo range from 19,200 UYU ($500) for one-bedroom units outside the city center to 41,500 UYU ($1,100) for three-bedroom apartments in prime central locations. One-bedroom apartments in Montevideo's city center typically rent for 24,600-30,000 UYU ($650-$750) monthly, while three-bedroom units outside the center average 31,700 UYU ($850).

Houses in Uruguay command higher rents, particularly in desirable areas. Standard houses in Montevideo and Punta del Este rent for 40,000-75,000 UYU ($1,100-$2,000) monthly for two to four-bedroom properties. Luxury homes in prime coastal locations exceed these ranges significantly, often reaching $3,000-$5,000 for high-end properties with ocean views or exclusive amenities.

Commercial properties present different rental structures. Retail spaces in Montevideo's main commercial areas typically rent for $20-$35 per square meter monthly, while Class A office buildings command $12-$18 per square meter monthly.

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

How do average rents differ across major cities and popular neighborhoods?

Montevideo dominates Uruguay's rental market with the highest prices and greatest neighborhood variation.

The most expensive Montevideo neighborhoods include Pocitos, Carrasco, Punta Carretas, and Malvin. In Pocitos and Punta Carretas, one-bedroom apartments rent for $750-$1,200 monthly, while three-bedroom units command $1,500-$3,000. These premium areas attract expats and affluent locals seeking modern amenities and proximity to beaches or shopping centers.

More affordable Montevideo neighborhoods like Centro, Cordón, and La Blanqueada offer one-bedroom apartments ranging from $550-$750 monthly. These areas appeal to students, young professionals, and budget-conscious tenants who prioritize central location over luxury amenities.

Punta del Este represents Uruguay's premium coastal rental market. One-bedroom apartments start from $1,000 monthly during off-season, reaching $2,500 or higher during peak summer months. Peak-season short-term rentals command even higher rates, reflecting the area's status as a premier South American resort destination.

Interior cities including Salto, Paysandú, and Colonia offer rental rates 15-40% lower than coastal areas. These markets serve local professionals and retirees seeking affordable living costs while maintaining access to urban amenities.

What's the typical price difference between small, mid-sized, and large surface areas?

Property size significantly impacts rental pricing in Uruguay, with smaller units commanding higher per-square-meter rates.

Studios and one-bedroom apartments in Montevideo's center (20-35 square meters) rent for $500-$750 monthly, reflecting high demand from singles and young professionals. Two-bedroom properties (45-80 square meters) typically rent for $750-$1,200, with prime locations reaching $1,750 for larger units with premium amenities.

Larger properties exceeding 120 square meters show declining per-square-meter rates due to limited demand from families and high-income tenants. However, absolute rental values remain substantial, particularly in prestigious neighborhoods or coastal areas.

What's the average total rent cost once you include fees, utilities, and property taxes?

Total housing costs in Uruguay extend significantly beyond base rental rates.

Utilities including electricity, water, gas, and garbage collection add 5,400-8,300 UYU ($135-$210) monthly for standard apartments. Internet service (100Mbps or higher) costs an additional 1,300-1,600 UYU ($33-$40) monthly. These utility costs remain relatively consistent across property sizes, making them proportionally more significant for smaller rental units.

Property taxes (Contribución Inmobiliaria) vary by location and property value, typically ranging from 0.25-0.45% of annual property value. For tenants, this translates to approximately $40-$100 monthly depending on property value and location. Premium properties in Montevideo or Punta del Este face higher tax assessments.

Building expenses (gastos comunes) for apartment buildings add $70-$200 monthly, covering maintenance, security, and common area services. Luxury buildings with amenities like pools, gyms, or 24-hour security command higher monthly fees.

Total housing costs typically exceed base rent by 20-25%, meaning a $1,000 monthly apartment costs approximately $1,200-$1,250 including all expenses and fees.

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How do mortgage costs affect the profitability of owning a rental property?

Mortgage financing significantly impacts rental property investment returns in Uruguay.

Current mortgage rates for 20-year fixed loans average 6.6%, with ranges from 4.75% to 15% depending on borrower qualifications and lender terms. These rates often equal or exceed gross rental yields, creating challenging investment mathematics for highly leveraged properties.

Principal and interest payments on standard mortgages frequently match or surpass rental income, meaning buy-to-let investments only become attractive with substantial down payments, below-market purchase prices, or expectations of significant property appreciation. For example, a $200,000 property generating 5% gross yield ($10,000 annually) may require mortgage payments exceeding $12,000 annually at current rates.

Net rental yields after mortgage costs, property management, maintenance, and taxes typically range from 1.5-3% for leveraged properties. Cash purchases or high-equity investments achieve better returns, with net yields reaching 3-4% annually.

Investors focusing on short-term rentals or premium properties may overcome mortgage cost challenges through higher rental rates, particularly in tourist areas like Punta del Este where seasonal demand supports premium pricing.

What are the best options for short-term versus long-term rentals?

Uruguay's rental market offers distinct advantages for both short-term and long-term strategies.

Short-term rentals through platforms like Airbnb generate significantly higher yields, particularly in tourist destinations. Punta del Este achieves 46% annual occupancy at $136 daily rates, producing approximately 12% annual yields. Montevideo's short-term rental market shows 67% occupancy at $55 daily rates, also achieving 12% yields. Short-term rentals often generate 40% higher income than long-term arrangements during peak tourist seasons.

Long-term rentals provide stable, predictable income with lower management requirements. These arrangements appeal to investors seeking steady cash flow without the operational complexity of guest turnover, cleaning, and tourist service management. Long-term tenants include local professionals, expat workers, and students providing consistent occupancy.

The best short-term rental locations include Punta del Este (seasonal tourism), central Montevideo (business travelers), and coastal neighborhoods (weekend and vacation rentals). Long-term rental success concentrates in residential neighborhoods, university areas, and business districts where tenants prioritize stability over short-term flexibility.

Seasonal considerations significantly impact strategy choice. Short-term coastal rentals peak during December-March summer months but may struggle during winter periods, while long-term arrangements provide year-round income stability.

Can you give example rental prices for different property types and sizes?

Specific rental examples help illustrate Uruguay's market pricing across different segments.

These examples reflect current market conditions as of September 2025. Premium properties in exclusive areas like Carrasco or oceanfront Punta del Este command top-tier pricing, while budget options in interior cities serve cost-conscious tenants. Commercial properties vary significantly based on foot traffic, location prestige, and business type compatibility.

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

What kind of tenant profiles usually rent in Uruguay?

Uruguay attracts diverse tenant demographics across different market segments.

Local professionals and middle-class families form the foundation of long-term rental demand, particularly in suburban Montevideo and interior cities. These tenants seek stable housing near employment centers, schools, and family amenities. They typically prefer two to three-bedroom apartments or houses with parking and access to public transportation.

Expats represent a significant portion of high-end rental demand, concentrating in neighborhoods like Pocitos, Carrasco, and Punta Carretas. International workers, remote employees, and expatriate retirees often prefer furnished properties with modern amenities and proximity to international schools, healthcare facilities, and expat communities. This demographic typically accepts higher rental rates for convenience and quality.

Students drive rental demand in university areas, particularly Cordón and Centro near major educational institutions. Student tenants often share apartments to reduce costs and prefer flexible lease terms aligned with academic calendars. This market segment tolerates basic amenities in exchange for affordable pricing and central locations.

Retirees, both Uruguayan and international, increasingly seek coastal or quieter interior locations. This demographic values security, healthcare access, and leisure amenities over proximity to business districts. Many retiree tenants prefer ground-floor units or properties with accessibility features.

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 are the current vacancy rates and their effect on rent levels?

Vacancy rates vary significantly across Uruguay's different property types and locations.

Residential properties in Montevideo's premium neighborhoods maintain low vacancy rates due to consistent demand from expats, professionals, and students. Areas like Pocitos, Punta Carretas, and Carrasco experience vacancy rates below 5% for quality properties, supporting stable or increasing rental rates. High demand in these areas allows landlords to maintain premium pricing and selective tenant screening.

Commercial property vacancy rates show more variation. Office space in Montevideo experiences approximately 12-15% vacancy rates, reflecting post-pandemic workplace changes and reduced corporate space requirements. This elevated commercial vacancy moderates aggressive rent increases and provides tenants with negotiating leverage for lease terms and rental reductions.

Retail commercial properties maintain lower vacancy rates than office space, particularly in established shopping areas and malls. However, increased competition from online retail and changing consumer patterns prevent dramatic rental growth in traditional retail locations.

Seasonal vacancy patterns affect coastal areas significantly. Punta del Este and other beach communities experience higher winter vacancy rates outside peak tourist seasons, while university areas in Montevideo show seasonal fluctuations aligned with academic calendars. These patterns require property investors to plan for irregular income flows and adjust rental strategies accordingly.

What are the typical rental yields and how do they break down?

Uruguay's rental yields as of September 2025 average 5.0% nationally, with significant variation by property type and location.

Montevideo rental yields range from 4.2% to 6.7% depending on property size and neighborhood. Studio apartments achieve 5.1-5.7% gross yields, while one-bedroom units range from 4.8-6.7%. Two-bedroom properties show the widest yield range at 4.2-6.7%, reflecting diverse quality and location factors. Three-bedroom apartments typically yield 4.9-6.0%, with larger properties generally producing lower percentage returns due to higher purchase prices.

The best performing neighborhoods for rental yields include Malvin, La Blanqueada, Punta Carretas, and Pocitos. These areas combine reasonable property purchase prices with strong rental demand, creating favorable investment mathematics for property investors.

Net yields typically fall 1.5-2 percentage points below gross yields after accounting for taxes, property management fees, maintenance costs, and vacancy periods. This means a 5.5% gross yield property might generate 3.5-4% net returns to investors after all expenses.

Short-term rental yields significantly exceed long-term arrangements in tourist areas. Punta del Este and central Montevideo Airbnb properties achieve 10-12% gross yields during peak occupancy periods, though they require more active management and face seasonal income variations.

How have average rents and yields changed over recent years and what's the forecast?

Uruguay's rental market has experienced notable changes over the past five years, with current trends pointing toward continued evolution.

From 2024 to 2025, rental yields softened from 5.4% to 5.0% as property purchase prices increased faster than rental rates in major cities. This yield compression reflects increased investment interest in Uruguayan real estate, particularly from international buyers seeking stable South American investments. Prime city property prices surged while rental growth remained constrained by local income levels and economic conditions.

Over the five-year period from 2020-2025, Uruguayan rents generally kept pace with inflation, maintaining purchasing power for property investors. However, prime areas in Montevideo and Punta del Este experienced property value appreciation that outpaced rental growth, resulting in declining yield ratios for new investors purchasing at current market prices.

One-year forecast (2025-2026) suggests continued low-to-mid single-digit yields with gradual upward rent pressure in premium and tourist markets. Sustained demand from expats, retirees, and remote workers should support rental growth in desirable areas, while economic uncertainties may constrain rent increases in budget segments.

Five-year outlook (2025-2030) depends heavily on global mobility trends, Uruguay's political stability, and regional economic development. Continued attraction of international residents and investors likely supports steady demand and moderate rental growth. Ten-year projections remain positive based on Uruguay's reputation for stability, security, and quality of life compared to regional alternatives.

How do Uruguay rents and yields compare with similar Latin American markets?

Uruguay's rental market positions competitively within Latin America, offering unique advantages and some limitations.

Rental rates in Montevideo align closely with mid-tier South American capitals like Santiago or Buenos Aires when measured in U.S. dollar terms for expatriate tenants. Monthly rents for comparable properties often match Chilean or Argentine alternatives, though Uruguay provides greater political and economic stability for long-term tenants and investors.

Rental yields in Uruguay average lower than higher-growth markets like Colombia or Paraguay, where 6-8% gross yields remain common. However, Uruguay's rental yields exceed those found in Lima, Peru, and compare favorably with certain Portuguese or Spanish cities that attract similar expatriate demographics.

Uruguay's rental market offers superior stability compared to most Latin American alternatives. Property investors face less dramatic rent swings, currency volatility, and political uncertainty than markets in Argentina, Brazil, or Venezuela. This stability appeals to conservative investors prioritizing capital preservation over maximum yield potential.

The expatriate and student demand foundation in Uruguay provides more resilient rental markets than purely domestic-driven alternatives. International tenant demand helps insulate Uruguayan rental markets from local economic downturns and provides natural currency hedging for dollar-earning property investors.

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. Wise - Cost of Living Uruguay
2. Travel Safe Abroad - Uruguay Cost of Living
3. Statista - Commercial Real Estate Uruguay
4. Global Property Guide - Uruguay Rental Yields
5. The LatinVestor - Average House Price Uruguay
6. The LatinVestor - Uruguay Price Forecasts
7. Exiap - Cost of Living Uruguay
8. Airbtics - Best Airbnb Markets Uruguay
9. The LatinVestor - Montevideo Property
10. Numbeo - Uruguay Cost of Living