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
Montevideo's property market is currently experiencing steady growth with moderate price appreciation and strong rental yields.
As of September 2025, property prices in Montevideo range from $750/m² in affordable neighborhoods to $4,260/m² in prime coastal areas, with the city showing consistent 2-4% annual growth and rental yields averaging around 5% citywide.
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's housing market shows steady growth with prices averaging $2,420-$3,500/m² citywide and premium areas reaching up to $4,260/m².
The market offers 4.5-6.7% rental yields, with properties selling within 25-65 days depending on location and pricing.
| Market Indicator | Current Status (Sep 2025) | Details |
|---|---|---|
| Average Price Range | $2,420-$3,500/m² | Citywide for typical neighborhoods |
| Premium Areas | $4,000-$4,260/m² | Pocitos, Carrasco, Punta Carretas |
| Affordable Areas | $750-$950/m² | Las Acacias, Cordón, older properties |
| Annual Growth | 2-4% | Short-term forecast next 6 months |
| Rental Yields | 4.5-6.7% | Varies by neighborhood |
| Selling Time | 25-65 days | Depends on area and pricing |
| Most Competitive Budget | $100,000-$200,000 | 1-2BR apartments in central areas |
What are the average property prices in Montevideo right now?
Property prices in Montevideo vary significantly based on location and property type as of September 2025.
The citywide average ranges from $2,420 to $3,500 per square meter for typical neighborhoods. Premium coastal areas like Pocitos, Carrasco, and Punta Carretas command the highest prices, reaching up to $4,000-$4,260 per square meter.
More affordable options exist in neighborhoods like Las Acacias and Cordón, where prices start from $750-$950 per square meter for older properties or non-central locations. These areas offer excellent value for first-time buyers or investors looking for lower entry points.
The price variations reflect Montevideo's diverse neighborhoods, with coastal proximity, infrastructure quality, and neighborhood amenities being the primary price drivers.
How have prices changed over the last 6 to 12 months?
Montevideo's property market has shown steady but moderate growth over the past year.
From 2024 to 2025, the city experienced approximately 1.2-2.9% price growth across most segments. Premium and coastal areas performed better, with some neighborhoods seeing increases of 3-5% during this period.
This growth represents a steady recovery following the more volatile years of 2020-2022 during the pandemic period. The market has stabilized with consistent demand from both local buyers and foreign investors.
The price appreciation has been driven primarily by end-user demand rather than speculative investment, creating a more sustainable growth pattern compared to boom-bust cycles seen in other markets.
What's the short-term outlook for prices in the next 6 months?
The short-term forecast for Montevideo's property market remains positive through early 2026.
Market analysts expect moderate appreciation of 2-4% over the next six months, continuing the steady growth trend established throughout 2025. This growth is supported by continued local demand and steady foreign investment interest.
The most dynamic growth is expected in neighborhoods benefiting from new infrastructure projects and those experiencing urban renewal initiatives. Areas like Ciudad Vieja and Cordón may see above-average appreciation due to ongoing revitalization efforts.
Coastal neighborhoods will likely maintain their premium pricing with steady 2-3% growth, while emerging areas could see more aggressive appreciation as they gain popularity among buyers.
What's the medium-term outlook for prices in the next 2 to 3 years?
The medium-term outlook for Montevideo's property market projects sustained growth through 2027-2028.
Annual growth forecasts range from 3-5% per year, with neighborhoods benefiting from new infrastructure, business districts, and lifestyle upgrades leading the appreciation. This represents healthy, sustainable growth that aligns with economic fundamentals.
Factors supporting this outlook include Uruguay's political stability, growing expat community, and planned infrastructure improvements throughout Montevideo. The city's appeal as a regional hub continues to attract both residents and investors.
Premium coastal areas are expected to maintain their value proposition, while emerging neighborhoods may experience faster appreciation as they mature and develop better amenities.
What's the long-term trend for the housing market over the last 10 years?
Montevideo's housing market has demonstrated remarkable consistency over the past decade.
| Period | Growth Pattern | Characteristics |
|---|---|---|
| 2015-2019 | Steady 4-6% annually | Pre-pandemic stable growth |
| 2020-2022 | Volatile 0-8% range | Pandemic-related fluctuations |
| 2023-2025 | Stable 2-4% annually | Recovery and normalization |
| Overall Decade | Average 5% annually | Sustainable long-term growth |
| Market Character | No boom-bust cycles | Stable appreciation pattern |
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Which neighborhoods are seeing the strongest demand right now?
Several Montevideo neighborhoods are experiencing particularly strong buyer demand as of September 2025.
1. **Pocitos and Punta Carretas** - Premium coastal areas attracting families and expats seeking lifestyle amenities2. **Malvín** - Growing popularity for its ROI potential and family-friendly environment 3. **Carrasco** - High-end neighborhood maintaining strong demand from affluent buyers4. **Ciudad Vieja** - Urban renewal attracting young professionals and investors5. **Cordón** - Affordable, trendy area popular with young buyers and investors6. **Parque Rodó** - Strong rental demand from students and professionalsThese neighborhoods benefit from different demand drivers - coastal areas attract lifestyle buyers, while central neighborhoods appeal to investors and young professionals seeking convenience and value.
It's something we develop in our Uruguay property pack.
Which areas are still undervalued compared to the city average?
Several Montevideo neighborhoods offer excellent value propositions relative to their growth potential.
Cordón stands out as the best value area - centrally located, affordable, and increasingly popular with young professionals. Despite its prime location, prices remain significantly below coastal neighborhoods while showing strong appreciation potential.
Las Acacias offers some of the lowest prices per square meter in the city while benefiting from improving amenities and growing demand. This area attracts first-time buyers and investors seeking entry-level opportunities.
Centro provides functional living at lower costs than coastal areas, making it attractive for budget-conscious buyers who prioritize convenience over luxury amenities.
Ciudad Vieja represents a special opportunity - while undergoing rapid appreciation due to urban renewal, it still offers relative value compared to fully developed premium neighborhoods.
How do prices compare between apartments, houses, and new developments?
Property prices in Montevideo vary significantly by type and location as of September 2025.
| Property Type | Average Price/m² | Price Range |
|---|---|---|
| Apartments (Premium) | $3,500-$4,000 | Coastal and prime areas |
| Apartments (Standard) | $2,800-$3,200 | Central neighborhoods |
| Houses (Median) | $2,000 | Non-prime locations |
| Houses (Premium) | $2,500-$3,000 | Coastal/desirable areas |
| New Developments | $2,038-$4,260 | Varies by location significantly |
What's the current rental yield for apartments and houses in Montevideo?
Montevideo's rental market offers attractive yields for property investors as of September 2025.
Citywide rental yields average around 5% gross for both apartments and houses, making Montevideo competitive with other regional markets. The yields vary by neighborhood, with some areas offering significantly better returns.
Pocitos and Malvín deliver yields ranging from 4.5-6.7%, reflecting their strong rental demand and premium pricing. Cordón and Centro offer yields of 5-5.3%, providing steady returns with good tenant demand.
Las Acacias can achieve yields up to 6% for entry-level properties, making it attractive for investors seeking higher returns. The strong rental demand is driven by university students, young professionals, and the growing expat community.
Coastal areas maintain consistent rental demand year-round, while university-adjacent neighborhoods experience seasonal variations but offer excellent long-term rental potential.
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.
How quickly are properties selling on average in different areas?
Property selling times in Montevideo vary considerably based on pricing strategy and location.
The median selling time ranges from 25-65 days across different areas and price segments. Well-priced properties in sought-after neighborhoods typically go under contract within 17-23 days of listing.
Premium coastal areas like Pocitos and Carrasco see faster sales for properly priced properties, often selling within 20-30 days. These areas benefit from consistent buyer demand and established market dynamics.
Emerging neighborhoods like Cordón and Ciudad Vieja may take 40-60 days for sales, particularly for properties requiring renovation or those priced above market rates. However, well-positioned properties in these areas can sell quickly as buyer interest grows.
Properties that remain on the market beyond 60 days are typically overpriced or have specific issues that need addressing before attracting serious buyers.
What budget ranges are the most competitive for buyers today?
The Montevideo property market shows distinct competition levels across different price ranges.
The $100,000-$200,000 range represents the most competitive segment, particularly for 1-2 bedroom apartments in central or coastal neighborhoods. This range attracts first-time buyers, small families, and investors, creating intense competition for well-located properties.
Entry-level properties under $100,000 in up-and-coming areas like Cordón and Las Acacias also see strong competition from investors and young buyers seeking affordable entry points into the market.
The premium segment above $250,000 for larger or high-rise beachfront properties experiences less competition but requires more specific buyer profiles, typically affluent families or serious investors.
Mid-range properties between $200,000-$250,000 offer the best balance of options and competition levels for buyers seeking quality without premium pricing.
It's something we develop in our Uruguay property pack.
If I'm buying now, what's the best strategy depending on whether I want to live, rent out, or resell later?
Your buying strategy in Montevideo should align with your specific goals and timeline.
**For Owner-Occupiers:**- Focus on lifestyle factors, proximity to work and schools, and stable neighborhoods like Pocitos, Carrasco, and Malvín- Prioritize areas with established amenities and good long-term livability prospects- Consider future resale potential but prioritize personal satisfaction and convenience**For Rental Investors:**- Target high-demand rental corridors including Cordón, Parque Rodó, and Pocitos- Focus on modern or well-located units that attract quality tenants- Consider proximity to universities, business districts, and public transportation- Aim for properties that can achieve 5-6% rental yields consistently**For Resale/Appreciation:**- Seek undervalued areas undergoing urban renewal like Ciudad Vieja and Cordón - Consider new developments or off-plan purchases in areas with strong appreciation prospects- Account for transaction costs typically ranging 7-10% when calculating potential returns- Focus on neighborhoods with planned infrastructure improvements or development projectsIt'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.
Montevideo's property market offers steady growth opportunities with moderate appreciation and attractive rental yields.
The market's stability, combined with diverse neighborhood options and reasonable entry points, makes it suitable for various investment strategies and lifestyle preferences.