Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Get all the data you need about the real estate market in Montevideo
This blog post gives you a clear view of current housing prices in Montevideo in 2026, using fresh market data and simple explanations.
We constantly update this article because the Montevideo property market changes with interest rates, inflation, construction costs and neighborhood demand.
You will see current property prices in Montevideo, recent price trends, 2026 forecasts, 5-year forecasts and 10-year outlooks.
And if you’re planning to buy a property in this place, you may want to download our pack covering the real estate market in Montevideo.
What are the current property price trends in Montevideo as of 2026?
The Montevideo property market in 2026 is rising, but it is not in a boom, because prices are moving up at a steady pace while local affordability remains tight.
What is the average house price in Montevideo as of 2026?
As of 2026, the average residential property price in Montevideo is about UYU 6.1 million to UYU 7.1 million, or roughly US$155,000 to US$180,000, which is about €133,000 to €154,000.
This means the average price per square meter in Montevideo in 2026 is about UYU 89,000 to UYU 97,000, or roughly US$2,250 to US$2,450, which is about €1,930 to €2,100.
For most ordinary buyers, the realistic purchase range in Montevideo in 2026 is about UYU 3.6 million to UYU 13.8 million, or roughly US$90,000 to US$350,000, which is about €77,000 to €300,000.
How much have property prices increased in Montevideo over the past 12 months?
Property prices in Montevideo increased by about 5.5% to 6.5% over the past 12 months, with our best estimate near 5.9% in US dollar terms.
Across property types, compact apartments in Montevideo rose by about 6% to 9%, standard houses rose by about 3% to 6%, and large luxury homes rose by about 2% to 5%.
The most important reason behind this price growth in Montevideo was lower interest rates, because easier financing conditions supported buyer confidence while property remained a popular store of value.
Which neighborhoods have the fastest rising property prices in Montevideo as of 2026?
As of 2026, the three fastest rising neighborhoods for property prices in Montevideo are likely Cordón, La Blanqueada and Tres Cruces.
Cordón property prices are probably rising by about 8% to 11% a year, while La Blanqueada and Tres Cruces are probably rising by about 7% to 10% a year.
The main demand driver in these Montevideo neighborhoods is the same simple pattern: renters and buyers want smaller apartments near universities, hospitals, transport, offices and daily services.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Montevideo.
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Which property types are increasing faster in value in Montevideo as of 2026?
As of 2026, the estimated ranking by value growth in Montevideo is apartments first, townhouses or PH-style homes second, condos treated as apartments third, and large villas or detached houses fourth.
The top-performing property type in Montevideo is the compact apartment, with annual appreciation of about 7% to 9% in the best central and semi-central locations.
Compact apartments are outperforming other Montevideo property types because they are easier to rent, easier to resell and cheaper to buy than large houses in coastal areas.
Finally, if you’re interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Montevideo as of 2026?
As of 2026, the top three factors driving property prices in Montevideo are lower interest rates, strong demand for dollar-based assets and steady rental demand for small apartments.
The strongest upward pressure on Montevideo property prices is lower interest rates, because cheaper credit improves confidence even in a market where many buyers still use savings.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Montevideo here.
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What is the property price forecast for Montevideo in 2026?
The 2026 property price forecast for Montevideo is positive, but moderate, because the city has stable demand rather than fast population growth.
How much are property prices expected to increase in Montevideo in 2026?
As of 2026, property prices in Montevideo are expected to increase by about 5% to 7% in US dollar terms during the year.
The realistic forecast range for Montevideo property prices in 2026 is about 2% to 3% in a weak scenario, 5% to 7% in a base case and 8% to 10% in a strong scenario.
The main assumption behind most Montevideo property price forecasts is that interest rates stay supportive while inflation remains low enough to protect buyer confidence.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Montevideo.
Which neighborhoods will see the highest price growth in Montevideo in 2026?
As of 2026, the Montevideo neighborhoods expected to see the highest price growth are Cordón, La Blanqueada, Tres Cruces, Aguada, Goes and selected parts of Centro.
The projected 2026 price growth is about 8% to 10% in Cordón, 7% to 9% in La Blanqueada and Tres Cruces, and 6% to 8% in Aguada and Goes.
The main catalyst is the same in each area: buyers can still enter below prime coastal prices, while renters already want these neighborhoods for transport and services.
One emerging Montevideo neighborhood that could surprise is Aguada, because its lower price base gives it more room to rise if central spillover continues.
By the way, we’ve written a blog article detailing what are the current best areas to invest in property in Montevideo.
What property types will appreciate the most in Montevideo in 2026?
As of 2026, apartments are expected to appreciate the most in Montevideo, especially monoambientes, 1-bedroom units and compact 2-bedroom units near services.
The projected appreciation for the best Montevideo apartments in 2026 is about 7% to 9%, with higher results possible only for unusually well-priced units.
The main demand trend is the growth of small households, students, young workers and investors who prefer easy-to-rent apartments in central locations.
Large luxury detached houses are expected to underperform in Montevideo because the buyer pool is narrower and prices are already high in Carrasco, Punta Gorda and Malvín.
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How will interest rates affect property prices in Montevideo in 2026?
As of 2026, lower interest rates should have a mild positive effect on Montevideo property prices, especially for mid-market apartments and first investment properties.
The current benchmark rate in Uruguay is 5.75%, and mortgage rates are more likely to stay supportive than become sharply more expensive if inflation remains controlled.
In Montevideo, a 1% change in interest rates can noticeably change monthly affordability, but the price impact is softer than in mortgage-heavy markets because many buyers use savings or dollar assets.
You can also read our latest update about mortgage and interest rates in Uruguay.
What are the biggest risks for property prices in Montevideo in 2026?
As of 2026, the three biggest risks for Montevideo property prices are oversupply of small new apartments, peso weakness against the US dollar and weaker rental yields in expensive coastal areas.
The most likely risk is oversupply in similar small units, especially in Cordón, La Blanqueada and Tres Cruces, because many investors are buying the same type of apartment.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Montevideo.
Is it a good time to buy a rental property in Montevideo in 2026?
As of 2026, it is a good time to buy a rental property in Montevideo only if the buyer is selective and focuses on efficient apartments in strong rental areas.
The strongest argument for buying now is that Cordón, La Blanqueada, Tres Cruces, Aguada and Goes can still offer reasonable yields while prices remain below the prime coastal zones.
The strongest argument for waiting is that some corridors have many similar small apartments coming to market, which could slow rent growth and make negotiation easier.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Montevideo.
You’ll also find a dedicated document about this specific question in our pack about real estate in Montevideo.
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Where will property prices be in 5 years in Montevideo?
The 5-year outlook for Montevideo property prices is positive, but it should be seen as a steady compounding story rather than a fast boom story.
What is the 5-year property price forecast for Montevideo as of 2026?
As of 2026, property prices in Montevideo are expected to rise by about 25% to 38% cumulatively over the next 5 years.
A conservative 5-year scenario puts Montevideo property price growth near 15% to 22%, while an optimistic scenario puts growth near 40% to 45%.
The projected average annual appreciation rate in Montevideo over the next 5 years is about 5% to 6% in US dollar terms.
The key assumption behind this 5-year forecast is that Uruguay remains stable, inflation stays controlled and apartment demand remains concentrated in central and coastal neighborhoods.
Which areas in Montevideo will have the best price growth over the next 5 years?
The three Montevideo areas expected to have the best 5-year price growth are Aguada, Goes or Reducto, and La Blanqueada.
These areas could see about 30% to 45% cumulative growth over 5 years if rental demand stays strong and central spillover continues.
This is slightly different from the short-term forecast because Cordón may still grow fast in 2026, but Aguada and Goes have more long-term room to reprice from a lower base.
The currently undervalued area with the best 5-year outperformance potential is Aguada, because it is close to the center but still cheaper than many better-known neighborhoods.
What property type will give the best return in Montevideo over 5 years as of 2026?
As of 2026, compact apartments are expected to give the best total return in Montevideo over 5 years, especially 1-bedroom and efficient 2-bedroom units.
The projected 5-year total return for this property type is about 55% to 75% before taxes, purchase costs and vacancies, including both price appreciation and rental income.
The main structural trend favoring compact apartments is that Montevideo demand is increasingly focused on smaller, easier-to-maintain homes near services and transport.
The best balance of return and lower risk over 5 years is likely a well-priced apartment in La Blanqueada, Tres Cruces, Cordón, Parque Rodó or Aguada.
How will new infrastructure projects affect property prices in Montevideo over 5 years?
The three infrastructure themes most likely to affect Montevideo property prices over 5 years are metropolitan transport improvements, Ciudad Vieja renewal and port or bay-related works around Capurro and Aguada.
Properties near completed and useful infrastructure improvements in Montevideo can often command a 5% to 12% premium, although this premium is much weaker when projects remain only proposals.
The neighborhoods most likely to benefit are Ciudad Vieja, Centro, Aguada, Capurro, Tres Cruces, Buceo, Malvín and parts of the Avenida Italia corridor.
How will population growth and other factors impact property values in Montevideo in 5 years?
Montevideo population growth is expected to be slow over the next 5 years, so property values will depend more on household changes and neighborhood preference than on a big population boom.
The demographic shift with the strongest impact will be smaller households, because singles, couples and older residents often prefer smaller apartments near transport, health care and services.
Domestic and international migration should support property values in central, coastal and well-serviced areas, but the effect will be selective rather than citywide.
The property types and areas that benefit most will be compact apartments in Cordón, La Blanqueada, Tres Cruces, Centro, Parque Rodó, Pocitos and Malvín.
We made this infographic to show you how property prices in Uruguay compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Montevideo?
The 10-year property price outlook in Montevideo is still positive, but buyers should expect stability and rental income rather than explosive growth.
What is the 10-year property price prediction for Montevideo as of 2026?
As of 2026, property prices in Montevideo are expected to rise by about 55% to 75% cumulatively over the next 10 years in the base case.
A conservative 10-year scenario puts Montevideo property price growth near 25% to 35%, while an optimistic scenario puts growth near 80% to 90%.
The projected average annual appreciation rate in Montevideo over the next 10 years is about 4.5% to 5.8% in US dollar terms.
The biggest uncertainty in a 10-year Montevideo property forecast is the exchange rate, because homes are priced mainly in US dollars while many local buyers earn in Uruguayan pesos.
What long-term economic factors will shape property prices in Montevideo?
The top three long-term economic factors shaping Montevideo property prices are Uruguay’s political stability, the dollarized nature of property and slow but steady economic growth.
The most positive long-term factor is Uruguay’s reputation for legal and political stability, because that keeps Montevideo attractive for local savers and foreign buyers.
The biggest structural risk is weak affordability, because Montevideo property prices are in US dollars while many households depend on peso salaries.
You’ll also find a much more detailed analysis in our pack about real estate in Montevideo.
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.
| Source | Why this source matters | How we used it |
|---|---|---|
| INE Uruguay, IAI Compraventa | It is Uruguay’s official transaction-based real-estate indicator. | We used it as the main anchor for recent property price momentum. We gave special weight to its 5.88% 12-month dollar median increase. |
| INE Uruguay, main indicators | It gives official inflation and economic indicators for Uruguay. | We used it to compare property growth with inflation and local affordability pressure. We also used it to understand the wider economic context. |
| Banco Central del Uruguay, COPOM | It is the official source for Uruguay’s policy interest rate. | We used it to assess interest-rate pressure on buyers. We also used it to cross-check the 5.75% policy rate in 2026. |
| Banco Central del Uruguay, monetary policy reports | It explains the macro thinking behind rate decisions. | We used it to judge whether lower rates could keep supporting housing demand. We treated it as the central-bank macro baseline. |
| IMF Uruguay country page | It gives comparable macro forecasts and country-risk context. | We used it for GDP, inflation and medium-term macro assumptions. We used those assumptions to keep price forecasts conservative. |
| World Bank Uruguay Macro Poverty Outlook | It gives an independent view of Uruguay’s medium-term growth. | We used it to cross-check long-term economic growth assumptions. We used its moderate growth view to avoid over-optimistic housing forecasts. |
| Agencia Nacional de Vivienda, Viviendas Promovidas | It tracks the promoted-housing framework and project pipeline. | We used it to understand where new apartment supply is concentrated. We focused on Cordón, Tres Cruces, La Blanqueada, Centro and Aguada. |
| ANV, Ley de Viviendas Promovidas | It explains Uruguay’s tax incentives for residential construction. | We used it to understand why mid-market apartments remain active. We also used it to judge possible future supply risk. |
| Intendencia de Montevideo | It is the official source for local urban-policy plans. | We used it to identify city projects that may affect neighborhood values. We focused on mobility, streets, sanitation and central revitalization. |
| Tren-Tram project | It is the official site for the proposed metropolitan link. | We used it only as a proposal, not as a guaranteed project. We treated it as possible upside for connected corridors. |
| INGAR market dashboards | It gives useful neighborhood-level listing and yield data. | We used it where official sources are not granular enough. We treated it as asking-market evidence, not final closed-sale data. |
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If you want to go deeper, you can read the following: