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Yes, the analysis of Montevideo's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Pocitos? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Carrasco or Punta Carretas where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Uruguay Property Pack.
Will property prices increase in Montevideo in 2025?
Yes, property prices in Montevideo are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Montevideo remains an attractive city for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Montevideo’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Montevideo’s status as a cultural and economic hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Montevideo
Here are some factors suggesting prices could increase:
The shortage of housing construction permits expected in 2025 means fewer new developments will hit the market, particularly in highly sought-after areas. With demand remaining steady, this continued lack of supply will likely push up prices, especially in the city’s central neighborhoods.
Montevideo is experiencing a surge in tourism and expatriate interest, which is expected to continue into 2025. This influx of international attention is likely to increase demand for both residential and investment properties, driving up prices.
Government initiatives aimed at urban renewal and infrastructure improvements are set to enhance the appeal of certain districts in Montevideo. These projects are expected to increase property values in the areas benefiting from improved amenities and connectivity.
The stable political climate in Uruguay, coupled with favorable economic policies, continues to attract foreign investors. This trend is expected to persist in 2025, contributing to increased demand for real estate in Montevideo.
Montevideo's growing reputation as a tech and innovation hub is attracting young professionals and entrepreneurs. This demographic shift is likely to boost demand for modern housing options, particularly in tech-friendly neighborhoods.
Signals pointing to a property price decrease in Montevideo
Here are some factors suggesting prices could fall:
Rising inflation and living costs are squeezing household budgets across Uruguay, and Montevideo is no exception. As essential goods and services become more expensive, middle-income buyers may be priced out of the market, which could reduce demand for lower and mid-tier properties.
Higher mortgage interest rates, which have risen sharply from the ultra-low levels seen in recent years, are making it increasingly difficult for buyers to secure affordable financing. This particularly impacts those looking to purchase second homes or investment properties, potentially cooling off demand in the broader market outside of the luxury segment.
Economic uncertainties in the region could impact investor confidence, leading to a more cautious approach to property purchases. This could result in a temporary slowdown in demand, affecting property prices in the short term.
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If property prices go up in Montevideo, how much would they increase by?
If real estate prices in Montevideo were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Montevideo appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as neighborhood, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in Pocitos for 200,000 USD today, don't be surprised if it's priced between 206,000 and 214,000 USD this time next year.
To give you a better understanding, here is a table that shows 7 types of Montevideo real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (USD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Pocitos (60 sqm / 646 sqft) | 200,000 | 206,000 | 210,000 | 214,000 |
| Modern Apartment in Punta Carretas (75 sqm / 807 sqft) | 300,000 | 309,000 | 315,000 | 321,000 |
| Luxury Penthouse in Carrasco (100 sqm / 1,076 sqft) | 500,000 | 515,000 | 525,000 | 535,000 |
| Studio in Ciudad Vieja (30 sqm / 323 sqft) | 100,000 | 103,000 | 105,000 | 107,000 |
| Loft in Centro (80 sqm / 861 sqft) | 250,000 | 257,500 | 262,500 | 267,500 |
| Townhouse in Prado (150 sqm / 1,615 sqft) | 400,000 | 412,000 | 420,000 | 428,000 |
| Investment Property in Malvín (50 sqm / 538 sqft) | 150,000 | 154,500 | 157,500 | 160,500 |
Everything you need to know is included in our Property Pack for Montevideo
If real estate prices go up in Montevideo, which areas are likely to see the biggest increases?
Today, people who want to move to Montevideo are looking for a blend of historical charm and modern amenities, which Ciudad Vieja offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Pocitos has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Montevideo market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Ciudad Vieja | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Punta Carretas | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Montevideo. |
| Pocitos | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Carrasco | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Parque Rodó | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Malvín | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Buceo | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Centro | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Punta Gorda | Medium-High | Its proximity to Montevideo, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Aguada | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Prado | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Tres Cruces | High | Upcoming restoration of key landmarks and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Montevideo
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Montevideo?
In 2025, Montevideo real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Montevideo, such as Carrasco and Pocitos, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Montevideo, with its beautiful coastline and parks, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Montevideo's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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