Summary
Yes, but slowly: the official price of promoted new-build flats in Montevideo rose 5.1% in US dollars over the 12 months to April 2026 (ANV). Measured in inflation-linked units, the same price fell 2.2%, so in real terms it's flat.
Homes sell slowly. The median unsold listing in Montevideo has been online for 147 days (TuLugar, October 2026), and most buyers pay 6% to 10% below the asking price (our estimate).
Asking prices run from USD 2,157/m² in Ciudad Vieja to USD 4,370/m² in Carrasco, with a median across barrios of USD 2,841/m² (INGAR, September 2026).
Apartments are the market. Cordón alone accounts for 26.4% of all promoted-housing sales declared in Montevideo since the scheme began (ANV, to May 2026).
The barrios moving fastest are Cordón, Ciudad Vieja, Palermo, Barrio Sur and Aguada. Cordón still asks USD 3,228/m², 18% less than Pocitos.
Locals find the coast expensive: Pocitos asks about 39% more per m² than the city median, while salaries are paid in pesos and asking rents fell 3.9% in a year.
Foreigners can buy freely, but banks are cautious: Santander quotes non-residents 6.75% in dollars for a main home (August 2026), and most foreign buyers pay cash.
Montevideo moves less than Buenos Aires and less with the seasons than Punta del Este. It is not crash-proof (2002 hit dollar prices hard), but since then slowdowns have shown up as longer sale times.
Long-term rental demand is steady, not growing: a 1-bedroom asks about UYU 29,400 a month (Gallito, August 2026), and INGAR's median gross yield of 6.1% works out to about 4% net after costs and tax.
Airbnb is crowded: AirROI counts 2,487 listings, 32% more than a year earlier, at 44% average occupancy.
Promoted flats (vivienda promovida) sold at an average USD 2,411 per built m² over the 12 months to April 2026. The tax breaks are real, but check the rent you can actually get before paying a premium.
Our base case is a 3% to 6% rise in dollar prices over the next 12 months. Buy small, well-located apartments, negotiate hard on anything listed for more than six months, and check gastos comunes before you fall for a flat.
Are Montevideo prices still rising, and how fast do homes sell?
Are property prices still going up in Montevideo?
In dollars, yes, but not by much. The only official price series is ANV's report on promoted new-build flats: in Montevideo, the average price per built m² rose 5.1% in US dollars over the 12 months to April 2026, to USD 2,411/m².
In UI (the inflation-linked unit), the same price fell 2.2%. So the dollar gain mostly reflects peso inflation (4.68% over 12 months in September 2026, INE), not a boom.
Activity is fine. Montevideo accounted for 33.59% of the 4,838 property sales registered in Uruguay in August 2026, or about 1,625 deeds, and national sales were up 9.85% on August 2025 (INE).
| Indicator | Latest figure | Source and period |
|---|---|---|
| Promoted new-build price, Montevideo | USD 2,411/m² built, +5.1% in a year | ANV, 12 months to April 2026 |
| Same price in UI (real terms) | -2.2% in a year | ANV, 12 months to April 2026 |
| Asking price, apartments (median of barrios) | USD 2,841/m² | INGAR, September 2026 |
| Asking price, apartments (all listings) | USD 3,308/m² | TuLugar, October 2026 |
| Median age of unsold listings | 147 days | TuLugar, October 2026 |
| Share of national sales | 33.59% | INE, August 2026 |
| Asking rents, all homes | -3.9% in a year | El País / Gallito, August 2026 |
What's the average days-on-market?
Nobody publishes a real time-to-sell. The best proxy is the age of listings still online: in October 2026, the median unsold listing in Montevideo was 147 days old, against 203 days nationally and 339 in Punta del Este (TuLugar).
Those are homes that haven't sold yet, so real sale times are shorter. Our estimate: a well-priced apartment sells in about three to six months, while an overpriced or older house can sit for six months to a year.
Liquid barrios such as Pocitos, Cordón, Tres Cruces and Parque Rodó move faster than the city average. Weaker barrios and big old houses are where listings pile up.
Are properties selling above or below asking?
Below. We estimate that most Montevideo homes sell at 90% to 94% of the asking price, so a normal buyer pays 6% to 10% less than advertised (about 8% is a fair working number). Uruguay doesn't publish a sale-to-list ratio, so treat this as our estimate.
Fewer than 5% of homes sell above asking, in our view. When it happens, it's for scarce, well-priced small apartments in Pocitos, Cordón, Parque Rodó or Punta Carretas.
The older the listing, the more room you have. On a flat listed for more than six months, opening 10% below the asking price is normal.
Uruguay Property Market
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What kinds of residential properties can I realistically buy in Montevideo?
What property types dominate in Montevideo right now?
Mostly apartments, then older houses, PH-style homes (small houses sharing a lot), small investor units and a few luxury houses.
Apartments dominate in Pocitos, Cordón, Centro, Parque Rodó, Tres Cruces, La Blanqueada, Buceo and Punta Carretas. That's where the jobs, universities, hospitals, transport and the Rambla are, and where land is too scarce for houses.
Prices follow the coast: Carrasco asks USD 4,370/m², Parque Rodó USD 4,347, Punta Carretas USD 4,184 and Pocitos USD 3,956, against USD 3,026 in Centro and USD 2,157 in Ciudad Vieja (INGAR, September 2026).
Are new builds widely available in Montevideo right now?
Yes, in the central barrios. We estimate new builds are 15% to 25% of active listings citywide, and a lot more in apartment-heavy areas.
The promoted-housing scheme alone has recorded 20,904 sales in Montevideo since it started, and Cordón accounts for 26.4% of them, against 7.0% for Centro (ANV, to May 2026). Tres Cruces, La Blanqueada, Buceo, Parque Batlle, Aguada, Palermo and Barrio Sur also get many new projects.
Which neighborhoods are improving fastest in Montevideo?
Which areas in Montevideo are gentrifying?
The clearest cases are Ciudad Vieja, Cordón, Palermo, Barrio Sur, Aguada and some streets of Centro and La Blanqueada.
You can see it on the street: new apartment buildings in Cordón, renovated heritage buildings in Ciudad Vieja, more cafés and nightlife around Palermo and Barrio Sur, and more students and young professionals along the central corridors.
They are still cheaper than the coast: Cordón asks USD 3,228/m² and Ciudad Vieja USD 2,157/m², against USD 3,956/m² in Pocitos (INGAR, September 2026). Over the last three years, we estimate these barrios gained roughly 10% to 15% in dollars, with the best streets doing better.
Where are infrastructure projects boosting demand?
Mainly in Ciudad Vieja, Centro, Cordón, Aguada, Tres Cruces, La Blanqueada and Parque Batlle.
The biggest project is transport: in March 2026 the city and the national government agreed to overhaul metropolitan buses, with rapid bus lanes along 18 de Julio and the main corridors, with works planned over 2026 to 2029. Add the redensification of Ciudad Vieja, the recycling of empty buildings in the center, and hospital and university demand around Parque Batlle and La Blanqueada.
Don't pay for the plan in advance. Announcements bring visits; prices only follow once streets, buildings and daily safety actually improve. During the works, flats on 18 de Julio may be harder to rent.
70+pagesWhat do locals and insiders say the market feels like in Montevideo?
Do people think homes are overpriced?
Many do, especially in Pocitos, Punta Carretas, Buceo, Malvín and Carrasco.
Their argument is simple: prices are in dollars, salaries are in pesos, and listings stay online for months. Pocitos asks about USD 3,956/m², 39% more than the city median of USD 2,841/m² (INGAR, September 2026), while asking rents fell 3.9% over the year to August 2026 (El País / Gallito).
The other side: Uruguay offers legal stability, limited prime coastal supply, steady rental demand, and sellers who would rather wait than cut their price.
Against rents, Montevideo looks fair: INGAR's median gross yield of 6.1% means about 16 years of rent to pay back the price. Against local incomes, it's expensive.
What are common buyer mistakes people regret in Montevideo right now?
The first is overpaying for a nice-looking apartment with high gastos comunes, a weak building reserve fund or big repairs coming. Building fees for a 2-bedroom run from about UYU 3,000 a month in a basic building to UYU 12,000 or more with a doorman and amenities (INGAR, 2026). Ask for the last statements and the minutes of the owners' meetings.
The second is buying in a slow barrio because the price looks cheap, then finding that tenants and buyers are much thinner than in Pocitos, Cordón, Parque Rodó, Tres Cruces or La Blanqueada.
The third is forgetting tax: rental income is taxed at 12% (IRPF for residents, IRNR for non-residents), usually collected as 10.5% of the gross rent, plus contribución inmobiliaria every year.
How easy is it for foreigners to buy in Montevideo?
Do foreigners face extra challenges in Montevideo right now?
Legally, no. Practically, a little. There's no nationality restriction on buying a home, but the process is slower and heavier on paperwork than many first-time buyers expect.
Notaries (escribanos) and banks ask for ID, proof of where the money comes from, tax information and bank statements. Anti-money-laundering checks are taken seriously.
The rest is practical: Spanish-language contracts, dollar pricing, and checking the building itself (gastos comunes, reserve fund, humidity). Budget about 6% of the price in buying costs without an agent, about 9.5% with one, and 10% to 13% with a mortgage (INGAR, October 2026). And buying gives you no residence permit: that's a separate application with Migración. Two 2026 changes to know: a flat no longer opens the 11-year tax holiday for new residents (a home above UI 3.5 million, about USD 580,000, plus 60 days a year still makes you a tax resident, but under Law 20.446 the holiday now needs more than 183 days a year or property above UI 12.5 million, about USD 2.1 million), and Decree 238/026 caps cash payments for a property at UI 200,000 (about USD 33,000).
Do banks lend to foreigners?
Some do, but if you don't live in Uruguay, plan on cash and treat a loan as a bonus.
Santander publishes a non-resident tariff: 6.75% a year in dollars for a main home and 6.95% for an investment property (tariff of 7 August 2026), or 4.75% and 5.72% in UI. It asks for a minimum income of UI 10,000 (about UYU 66,500). BTG Pactual (the former HSBC Uruguay) has a non-resident line that finances up to 60% of the price and doesn't let you rent out the mortgaged home.
In practice, a non-resident puts down about 40% of the price. Approval takes 30 to 45 days at a private bank and 50 to 70 days at the BHU (INGAR, October 2026). Expect to show your passport, tax returns, proof of income, bank statements and the source of your funds.
70+pagesHow risky is buying in Montevideo compared to other nearby markets?
Is Montevideo more volatile than nearby places?
Less than Buenos Aires, and less seasonal than Punta del Este. The flip side is less upside: Montevideo doesn't do big rebounds.
Buenos Aires swings with Argentina's currency and politics, and Punta del Este with tourism and Argentine buyers. Montevideo has mostly moved in slow cycles. The peso helps right now: it has been stable at 40.1 to 40.3 per dollar since August 2026.
Is Montevideo resilient during downturns historically?
Mostly. The city concentrates jobs, government, universities, hospitals, embassies and long-term renters, so there's always demand. But it's not crash-proof: dollar prices fell hard in the 2002 banking crisis, which followed Argentina's collapse.
In milder slowdowns since then, weaker stock lost around 5% to 10% in dollars or simply sat unsold (our estimate). Recovery can take several years if credit and confidence stay tight.
What holds value best: small apartments in Pocitos, Cordón, Parque Rodó, Punta Carretas, Tres Cruces, La Blanqueada and Buceo, in buildings with reasonable fees.
How strong is rental demand behind the scenes in Montevideo?
Is long-term rental demand growing?
It's steady, not growing. Asking rents fell 3.9% over the year to August 2026. A 1-bedroom asks about UYU 29,400 (about USD 730) a month and a 2-bedroom UYU 40,100 (about USD 1,000) (El País / Gallito, August 2026).
By barrio, median asking rents for a 1-bedroom go from UYU 24,900 in Centro and UYU 27,000 in Cordón to UYU 29,000 in Pocitos and UYU 38,250 in Carrasco (Cambio Uruguay, October 2026). Nationally, INE counted 150,909 active leases in August 2026, at an average of UYU 22,400 (about USD 560) a month across all types.
Tenants are students, young professionals, hospital and office workers, foreigners renting before they buy, retirees and small households. Demand is strongest in Cordón, Centro, Tres Cruces, La Blanqueada, Parque Batlle, Pocitos, Buceo, Parque Rodó and Aguada.
For a landlord, INGAR's median gross yield of 6.1% (September 2026) works out to about 4% net once you take off building fees, property tax, vacancy, management and the 10.5% tax advance. The highest gross yields are in Ciudad Vieja (about 7.0%), Centro and Cordón (about 6.2%).
Is short-term rental demand growing?
Supply is growing much faster than demand. AirROI counts 2,487 Airbnb listings in Montevideo, 32% more than a year earlier.
The average listing ran at 44% occupancy and UYU 2,940 (about USD 73) a night over the 12 months to September 2026, for about UYU 312,000 (about USD 7,780) a year in revenue (AirROI). Summer lifts occupancy (55.6% in February 2026), but not nightly rates.
The best spots are Ciudad Vieja, Centro, Pocitos, Punta Carretas, Parque Rodó and near the Rambla. Guests are regional tourists, business travelers, people visiting hospitals or universities, remote workers and cruise passengers who extend their stay.
Check the building rules before you buy: many condominiums restrict short stays. Seasonal leases of up to 120 days fall under Law 20.352, and the Ministry of Tourism's registration rules drafted in 2025 are not confirmed in force yet. With a manager, the average Montevideo listing earns close to nothing net.
70+pagesHow much of Montevideo's new supply is promoted housing (vivienda promovida)?
For a long-term rental, often yes, if you don't overpay. Promoted flats sold in Montevideo averaged USD 2,411 per built m² (USD 3,115 per habitable m²) over the 12 months to April 2026, up 5.1% in dollars but down 2.2% in UI (ANV). That's close to what resale flats ask in Cordón (USD 3,228/m², INGAR).
The tax breaks are the point. Under Law 18.795, the investor pays no IRPF or IRNR on the rent and no wealth tax on the flat for 10 years, and the first sale of the flat carries no transfer tax (ITP) and no VAT. That turns a 6.2% gross yield in Cordón into a much better net than an ordinary flat, where 10.5% of the rent goes to tax.
The catch is supply. Cordón alone holds 26.4% of the 20,904 promoted sales declared in Montevideo (ANV, to May 2026), so many identical 1-bedrooms compete for the same tenants, and resale can be slow.
What to check: the project's ANV promotion resolution, the developer's finished buildings, the expected gastos comunes, and the rent that similar flats in the building actually get today (Cordón 1-bedrooms ask about UYU 27,000). Aim at a price per m² close to the barrio median, not above it.
What are the realistic short-term and long-term projections for Montevideo?
What's the 12-month outlook for demand in Montevideo?
Steady. The strongest demand is for small, well-located apartments that are easy to rent and resell.
Watch inflation (4.68% in September 2026), mortgage rates (the BCU policy rate is 6.00% since 8 October 2026), the peso (the BCU survey expects 40.5 per dollar at the end of 2026 and 41.4 at the end of 2027), jobs, construction costs and the flow of new flats in Cordón and Centro.
Our base case is a 3% to 6% rise in dollar prices over the next 12 months, close to the 5.1% ANV measured last year, with weaker results for overpriced large units. No institution publishes a price forecast for Montevideo, so this is our estimate, not a promise.
What's the 3-5 year outlook for housing?
Mildly positive. We expect the best barrios to rise about 3% to 5% a year in dollars, with no broad boom.
What will shape it: the bus corridor works planned through 2029, the redensification of Ciudad Vieja, promoted-housing projects, and more apartments in central and mid-market barrios. Over five years, promoted flats sold in Montevideo already went from USD 1,955 to USD 2,477 per built m² (first half of 2021 to January-April 2026, ANV), +26.7% in dollars.
The big unknown is whether new supply in Cordón, La Blanqueada, Aguada and nearby grows faster than real tenant and buyer demand.
Are demographics or other trends pushing prices up?
A little. Uruguay's population barely grows, so the push comes from smaller households and where people want to live, not from more people.
Students, retirees, foreign residents, young professionals and small households want apartments near transport, universities, hospitals and the Rambla.
Other trends help too: remote work, regional buyers looking for a stable place to park money, and investors who want simple rental flats.
These pressures should last, but they lift liquid apartment corridors, not large old units with high gastos comunes.
What scenario would cause a downturn?
The most likely one is a slow squeeze: weaker local incomes, tighter credit and too many new apartments at once. A sharp move in the peso would make it worse, but there's no sign of one right now.
Early warning signs: the median listing age moving well past today's 147 days, bigger discounts, asking rents falling further than the 3.9% of the last year, and unsold new flats piling up in Cordón, Aguada and La Blanqueada.
A realistic downturn would probably mean 5% to 10% price drops in weaker stock, not a citywide crash, unless Uruguay faces a much bigger shock (our estimate).
Our methodology
This article looks at where Montevideo's housing market stands in October 2026: price trends, how fast homes sell, what you can buy, the barrios that are changing, rental demand, credit for foreigners, the 2026 rule changes and the outlook for the next one to five years.
We start with official data: ANV for promoted-housing prices and sales, INE for registered sales, leases and inflation, and the BCU for the policy rate and exchange-rate expectations. We then add portal data (INGAR, TuLugar, El País / Gallito, Cambio Uruguay) for asking prices, listing ages, yields and rents, and AirROI for all short-term rental figures.
Rules come from the DGI (rental tax, tax residence), IMPO (Law 20.352, Decree 238/026), the DGI and RSM Uruguay (2026) for the tax-residence criteria, the DGI for the 2026 tax-holiday rules under Law 20.446, and the published bank tariffs.
We checked these figures in October 2026. Peso amounts are converted at about 40.1 pesos per US dollar and 45 pesos per euro (BCU, October 2026). Property in Montevideo is priced in US dollars, while long-term rents are usually paid in pesos.
Limits: portal figures are asking prices, not sale prices; the only official price series covers promoted new builds; listing ages are not sale times; and where no official figure exists (discounts, sale times, gentrification gains, net yields, forecasts) we give our own estimates and say so.
Key sources used for this analysis include ANV price report No. 50, INE IAI Compraventa (August 2026), INE IAI Alquileres (August 2026), INGAR Montevideo report (September 2026), TuLugar Montevideo, El País (Montevideo rents and prices), AirROI Montevideo, Santander Uruguay mortgage tariff, Forvis Mazars (tax residence), RSM Uruguay (tax residence 2026), IMPO (Decree 238/026) and Intendencia de Montevideo (transport plan).
