Is right now a good time to buy a property in Montevideo? (2026)

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

Is it smart to buy now in Montevideo, or should I wait as of 2026?

Do real estate prices look too high in Montevideo as of 2026?

As of early 2026, Montevideo property prices look more "steady-expensive" than "bubble-expensive," with official transaction data showing prices that can dip month-to-month rather than surge relentlessly upward.

One clear on-the-ground signal that supports this view is that INE's transaction bulletin showed Montevideo's median price dipped in September 2025 compared to the previous month, which suggests buyers have room to negotiate rather than chase prices higher.

Another useful signal is that new-build prices in Montevideo's promoted housing segment sit around USD 2,280 per square meter according to ANV data, giving you a reliable anchor to compare against asking prices on listings and spot overpriced properties.

You can also read our latest update regarding the housing prices in Montevideo.

Does a property price drop look likely in Montevideo as of 2026?

As of early 2026, the likelihood of a meaningful property price drop in Montevideo over the next 12 months is low, mainly because construction costs remain elevated and demand fundamentals are stable.

A plausible downside-to-upside range for Montevideo prices over the next year would be roughly minus 3% to plus 5%, meaning a small dip is possible in weaker segments but a crash is unlikely while a modest gain is more probable.

The single most important factor that could increase the odds of a price drop in Montevideo is a prolonged period of tight credit conditions, because expensive borrowing reduces the pool of buyers who can afford to purchase.

However, Uruguay's central bank has signaled potential rate cuts as inflation moderates toward 5%, so a credit squeeze severe enough to trigger price drops looks unlikely in the near term.

Finally, please note that we cover the price trends for next year in our pack about the property market in Montevideo.

Could property prices jump again in Montevideo as of 2026?

As of early 2026, the likelihood of a renewed price surge across Montevideo is medium, with any jump more likely to be selective (certain neighborhoods and property types) rather than citywide.

A plausible upside range for Montevideo property prices over the next 12 months would be 3% to 7%, with coastal and high-demand neighborhoods like Pocitos or Carrasco potentially seeing gains at the higher end.

The single biggest demand-side trigger that could drive prices to jump again in Montevideo is a meaningful drop in mortgage rates, because cheaper credit quickly expands the buyer pool and intensifies competition for good properties.

Please also note that we regularly publish and update real estate price forecasts for Montevideo here.

Are we in a buyer or a seller market in Montevideo as of 2026?

As of early 2026, Montevideo's property market is roughly balanced, leaning slightly toward buyers in some segments because prices can still dip month-to-month and negotiation is possible.

While Montevideo does not publish a precise "months-of-inventory" figure like some markets, transaction behavior suggests supply and demand are fairly matched, which typically means neither buyers nor sellers hold overwhelming leverage.

A useful proxy for seller leverage is price movement: the fact that INE data showed a month-over-month price dip in Montevideo in late 2025 suggests sellers are not in full control and buyers can push back on overambitious asking prices.

Are homes overpriced, or fairly priced in Montevideo as of 2026?

Are homes overpriced versus rents or versus incomes in Montevideo as of 2026?

As of early 2026, homes in Montevideo look fairly priced relative to rents but stretched relative to local incomes, meaning investors can find reasonable yields while first-time buyers may struggle with affordability.

The price-to-rent ratio in Montevideo works out to roughly 18 to 20 years of rent to equal the purchase price, which translates to a gross rental yield around 5% to 5.5% and sits within a reasonable range for a stable city.

The price-to-income multiple in Montevideo is harder for typical households: a USD 110,000 to 150,000 apartment often requires strong savings or dual incomes, suggesting prices are near an affordability ceiling that could limit future gains.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Montevideo.

Are home prices above the long-term average in Montevideo as of 2026?

As of early 2026, Montevideo prices sit modestly above their long-term trend in nominal terms, but once you adjust for inflation, real price growth over the past year is nearly flat at 0% to 1%.

Over the past 12 months, Montevideo housing prices rose about 4% in USD terms, which is slightly below the pre-pandemic pace of appreciation and suggests the market is grinding rather than sprinting.

In inflation-adjusted terms, Montevideo prices have risen roughly 20% over the past 10 years, which is meaningful but not extreme, and the market has not returned to a prior cycle peak that would signal obvious overvaluation.

What local changes could move prices in Montevideo as of 2026?

Are big infrastructure projects coming to Montevideo as of 2026?

As of early 2026, there is no single transformational infrastructure mega-project in Montevideo that is likely to cause a dramatic price spike, though ongoing urban improvements in transit and coastal areas support steady appreciation in well-connected neighborhoods.

Because Montevideo lacks a headline project like a new metro line or major port expansion, price impacts tend to be gradual and neighborhood-specific, which is a missed opportunity for faster growth in emerging areas.

For the latest updates on the local projects, you can read our property market analysis about Montevideo here.

Are zoning or building rules changing in Montevideo as of 2026?

The single most important zoning discussion in Montevideo relates to height limits and density allowances in certain neighborhoods, which affects how many new apartments can be built and where.

As of early 2026, the net effect of any likely zoning changes on Montevideo prices is probably modest: tighter rules in some areas could support prices by limiting supply, while looser rules elsewhere could add inventory and keep prices stable.

The areas most affected by rule changes tend to be transitional neighborhoods near the coast or downtown, such as Cordon, Tres Cruces, or parts of Buceo, where developers are most active.

Are foreign-buyer or mortgage rules changing in Montevideo as of 2026?

As of early 2026, foreign-buyer rules in Uruguay remain open and unchanged, with no taxes, bans, or quotas on foreign property purchases, so the bigger price driver is mortgage affordability for local buyers.

Uruguay has not signaled any imminent foreign-buyer restrictions, which keeps Montevideo attractive to Argentine, Brazilian, and European investors looking for a stable regional alternative.

On the mortgage side, the most likely change would be a gradual easing of rates as inflation moderates, which could boost local purchasing power and support prices in the affordable-to-mid segment.

You can also read our latest update about mortgage and interest rates in Uruguay.

Will it be easy to find tenants in Montevideo as of 2026?

Is the renter pool growing faster than new supply in Montevideo as of 2026?

As of early 2026, renter demand in Montevideo is growing modestly through household formation and internal migration, while new supply from promoted housing keeps pace, resulting in a roughly balanced rental market.

The best signal for renter demand in Montevideo is the steady increase in rental contracts and the 5% rent growth reported by INE over the past year, which shows tenants are active and willing to pay more.

On the supply side, Montevideo's promoted housing pipeline (Ley 18.795) has delivered a consistent stream of new apartments, which prevents chronic undersupply but also caps how fast rents can rise.

Are days-on-market for rentals falling in Montevideo as of 2026?

As of early 2026, days-on-market for rentals in Montevideo is not officially published as a citywide statistic, but rising rents and stable contract volumes suggest well-priced apartments in popular neighborhoods are renting without long delays.

In high-demand neighborhoods like Pocitos, Cordon, Centro, and Malvin, rentals typically move faster than the citywide average, while oversized or overpriced units in less central areas can sit longer.

A common reason days-on-market stays low in top Montevideo neighborhoods is sustained demand from professionals, students, and expatriates drawn to coastal amenities and urban convenience.

Are vacancies dropping in the best areas of Montevideo as of 2026?

As of early 2026, vacancies in top Montevideo rental neighborhoods like Pocitos, Punta Carretas, Cordon, and Malvin appear to be stable-to-declining, supported by consistent demand from local professionals and expatriates.

While there is no single official vacancy rate for these neighborhoods, INE rent data showing upward price pressure and platform activity showing concentrated demand both suggest these areas are tighter than the citywide average.

One practical sign that "best areas" are tightening first in Montevideo is that landlords in Pocitos and Punta Carretas report shorter listing times and fewer concessions compared to properties in peripheral neighborhoods.

By the way, we've written a blog article detailing what are the current rent levels in Montevideo.

Am I buying into a tightening market in Montevideo as of 2026?

Is for-sale inventory shrinking in Montevideo as of 2026?

As of early 2026, it is difficult to confirm whether for-sale inventory in Montevideo is shrinking because there is no single official listing count, but transaction behavior suggests supply and demand are relatively balanced.

INE transaction data serves as the closest proxy for market tightness in Montevideo: if transaction counts rise while prices hold, that signals tightening, whereas the month-over-month price dip in late 2025 suggests the market is not acutely undersupplied.

Are homes selling faster in Montevideo as of 2026?

As of early 2026, there is no precise citywide "median days-on-market" statistic for Montevideo sales, but market conditions suggest well-priced properties in strong neighborhoods are selling at a normal pace without dramatic acceleration.

Year-over-year, selling times in Montevideo likely held steady or lengthened slightly in weaker segments, because credit remains relatively expensive and buyers are taking their time to negotiate.

Are new listings slowing down in Montevideo as of 2026?

As of early 2026, we cannot confirm whether new for-sale listings in Montevideo are slowing because this metric is primarily tracked by private platforms, but the promoted housing pipeline suggests new supply continues at a moderate pace.

Montevideo's seasonal pattern for listings tends to peak in spring (October to December) and slow during summer holidays (January to February), so current levels may appear lower due to normal seasonal effects rather than a structural slowdown.

Is new construction failing to keep up in Montevideo as of 2026?

As of early 2026, new construction in Montevideo is not dramatically failing to keep up with demand citywide, thanks to the promoted housing program that has delivered a steady stream of apartments over recent years.

The recent trend in permits and completions in Montevideo has been stable, with the promoted housing ecosystem (Ley 18.795) continuing to incentivize developers to build, especially in central and coastal neighborhoods.

The single biggest bottleneck limiting faster new construction in Montevideo is high construction costs, which make it difficult for developers to deliver affordable units without significant price premiums.

Will it be easy to sell later in Montevideo as of 2026?

Is resale liquidity strong enough in Montevideo as of 2026?

As of early 2026, resale liquidity in Montevideo is reasonably strong for apartments in popular neighborhoods, meaning a well-priced property in areas like Pocitos, Punta Carretas, or Cordon should sell within a few months without drastic discounts.

The median days-on-market for resale homes in Montevideo varies widely, but in liquid segments (one to two bedroom apartments in good locations), expect roughly 60 to 120 days if priced correctly, which is healthy for this market.

The property characteristic that most improves resale liquidity in Montevideo is location: apartments in coastal or central neighborhoods with good transport links and building amenities consistently attract the widest buyer pool.

Is selling time getting longer in Montevideo as of 2026?

As of early 2026, selling time in Montevideo has likely held steady or stretched slightly in weaker segments compared to last year, driven by tight credit conditions that slow buyer decision-making.

The current median days-on-market in Montevideo probably ranges from 60 to 150 days depending on property type and location, with prime apartments at the faster end and overpriced houses at the slower end.

One clear reason selling time can lengthen in Montevideo is affordability pressure: when mortgage rates stay high, fewer buyers qualify, which means sellers wait longer or need to adjust their asking prices.

Is it realistic to exit with profit in Montevideo as of 2026?

As of early 2026, the likelihood of exiting with a profit in Montevideo is medium to high if you hold for at least five years, buy in a liquid neighborhood, and price correctly at purchase.

The minimum holding period in Montevideo that most often makes exiting with profit realistic is five to seven years, which allows enough time for modest appreciation to outpace transaction costs and inflation.

The total round-trip cost drag in Montevideo (buying plus selling costs including notary, taxes, and agent fees) typically runs around 8% to 12% of the property value, or roughly USD 9,000 to 14,000 on a USD 115,000 apartment (about EUR 8,000 to 12,500).

One clear factor that most increases profit odds in Montevideo is buying slightly below market value, either through negotiation or by targeting properties that need cosmetic updates in otherwise strong neighborhoods.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Montevideo, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.