Is it worth it buying property in Montevideo in 2025?

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Montevideo. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Uruguayan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Montevideo, Punta del Este, and Maldonado. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can you buy in Montevideo in 2025?

Montevideo offers a diverse range of property types to suit different budgets and lifestyle preferences.

Modern high-rise apartments dominate the coastal districts like Pocitos and Punta Carretas, featuring contemporary amenities and ocean views. Historic townhouses are available in Ciudad Vieja and Centro, offering character and walkable urban living. Suburban single-family homes and duplexes can be found in areas like Carrasco and Malvín, providing more space and privacy.

Luxury villas are primarily concentrated in Carrasco, the city's most prestigious neighborhood, with properties featuring private gardens, pools, and top-tier security. Budget-friendly condos and studios are available in neighborhoods like Cordón, Las Acacias, and Peñarol, making homeownership accessible to first-time buyers and investors seeking affordable entry points.

As of September 2025, the market shows strong demand across all property types, with coastal properties experiencing the highest appreciation rates.

Should you buy or rent if you plan to live in Montevideo?

Buying is generally the smarter financial choice if you plan to stay in Montevideo for more than three years.

Property values in Montevideo have shown consistent growth, rising 2.9% in 2024 with expectations of 3-5% annual appreciation going forward. The rental market also offers solid yields of 4-6%, meaning property owners can generate passive income if they ever need to relocate temporarily. Foreign buyers face no restrictions and enjoy full ownership rights, making the legal process straightforward and secure.

Renting offers greater flexibility for short-term stays or for those uncertain about their long-term plans. However, rental prices have also been rising in line with property values, and renters miss out on building equity and potential appreciation gains. The monthly cost difference between mortgage payments and rent is often minimal, especially when factoring in the investment potential of ownership.

It's something we develop in our Uruguay property pack.

How have property prices changed and what's the current forecast?

Montevideo property prices have experienced steady, sustainable growth over recent years.

Current average prices range from $2,420 to $3,500 per square meter across the city, with significant variation by neighborhood. Budget zones start from around $750/sqm in areas like Las Acacias and Peñarol, while premium coastal neighborhoods like Carrasco command $4,260+/sqm. Mid-tier areas such as Punta Carretas and Pocitos typically range from $3,500 to $4,000/sqm.

In 2024, the market saw overall price growth of 2.9%, with some coastal neighborhoods experiencing increases exceeding 10%. This growth reflects increased international interest, limited supply in prime areas, and Uruguay's reputation as a stable investment destination.

The forecast for 2025-2027 projects continued moderate growth of 3-5% annually. Coastal hotspots are expected to outperform the city average, driven by lifestyle appeal and limited developable land. This growth rate is considered healthy and sustainable, avoiding the bubble risks seen in some other Latin American markets.

What are the main real estate trends shaping Montevideo in 2025?

Several key trends are driving Montevideo's real estate market evolution in 2025.

High demand for properties with outdoor spaces has emerged as a top priority, with buyers seeking terraces, balconies, and private gardens. This trend accelerated during the pandemic and continues to influence both new construction and renovation projects. Properties featuring these amenities command premium prices and sell faster than comparable units without outdoor access.

Foreign ownership has become increasingly attractive due to Uruguay's low property taxes, political stability, and straightforward legal process. The growing expat and retiree community from Europe, North America, and Argentina is driving demand in premium neighborhoods and creating a supportive international community.

Rapid construction and modernization are transforming waterfront and historic districts, particularly in Zona 10 and Ciudad Vieja. New developments focus on mixed-use projects combining residential, commercial, and cultural spaces. The market is also seeing expanding appeal among younger residents and international investors seeking Uruguay as a safe haven investment destination.

What's the complete buying process for foreigners?

The property buying process in Montevideo is straightforward and typically takes 30-60 days to complete.

1. **Property Search and Selection**: Work with licensed real estate agencies or browse trusted platforms to identify suitable properties2. **Reservation Agreement**: Sign a preliminary agreement and pay a 10% deposit to secure the property3. **Legal Due Diligence**: A notary conducts comprehensive title checks and verifies all legal documentation (20-30 days)4. **Tax ID Acquisition**: Obtain a RUT (tax identification number), which is mandatory for all property transactions5. **Sales Contract Finalization**: Review and sign the definitive purchase contract with all terms and conditions6. **Debt Certificate**: The seller must provide an official certificate showing no outstanding debts on the property7. **Final Payment**: Transfer the remaining balance plus closing costs (typically 3-5% of purchase price)8. **Property Registration**: The deed is registered with local authorities to officially transfer ownership

Foreign buyers enjoy the same rights as Uruguayan citizens and face no restrictions on property ownership. The entire process is conducted in Spanish, so working with bilingual professionals is highly recommended.

Where can you find reliable properties and trusted agencies?

Several established agencies and platforms specialize in helping international buyers navigate Montevideo's property market.

Trusted local agencies include La Cite RE, Meikle Bienes Raices, InfoCasas, Zulamian, and Sures Real Estate. These agencies typically offer bilingual services, virtual property tours, and connections to legal experts who understand foreign buyer needs. Many have established track records working with international clients and can guide you through cultural and legal nuances.

International platforms such as Properstar, Global Property Guide, Realestate-in-Uruguay.com, and LuxuryEstate.com provide comprehensive listings with detailed property information and market analysis. These platforms often feature English-language descriptions and can filter properties by budget, location, and specific requirements.

It's something we develop in our Uruguay property pack.

When selecting an agency, prioritize those with proper licensing, positive client reviews, and transparent fee structures. The best agencies will provide market analysis, assist with legal requirements, and maintain relationships with notaries, banks, and other professionals essential to the buying process.

What does your budget realistically get you in Montevideo?

Budget Range	Property Type	Typical Features
$80,000-$150,000	Studios/1BR apartments	Cordón or Centro, basic amenities, good transport links
$160,000-$250,000	2BR apartments	Up-and-coming areas, basic properties in Pocitos/Malvín
$250,000-$350,000	3BR apartments/small houses	Good neighborhoods, modern amenities, parking
$350,000-$500,000	Upscale apartments/townhouses	Premium coastal districts, luxury finishes, security
$500,000-$800,000	Large houses/luxury apartments	Top neighborhoods, premium locations, full amenities
$800,000-$4M+	Luxury villas/penthouses	Carrasco, beachfront, private pools, top-tier finishes

Which neighborhoods offer the best opportunities and what are their characteristics?

Montevideo's neighborhoods each offer distinct advantages depending on your budget, lifestyle preferences, and investment goals.

**Carrasco** represents the pinnacle of Montevideo living, with properties averaging $4,260+/sqm. This prestigious area features the best private schools, maximum security, and proximity to the international airport. The neighborhood attracts wealthy locals and international executives, but the high cost limits accessibility for many buyers.

**Punta Carretas and Pocitos** offer prime waterfront living at $3,500-$4,000/sqm, featuring modern amenities, vibrant nightlife, and excellent restaurants. These areas provide the quintessential Montevideo coastal lifestyle but can be busy and expensive for daily living.

**Malvín** strikes a balance at $2,500-$3,000/sqm, offering traditional family-friendly atmosphere with beach access. While sometimes less vibrant than coastal hotspots, it provides good value and strong rental potential for families and professionals.

**Ciudad Vieja** delivers historic charm and walkability at $1,600-$2,400/sqm, perfect for those seeking cultural immersion and urban convenience. However, some buildings require renovation and the area can be noisy during peak tourist seasons.

**Cordón** appeals to younger buyers at $1,100-$1,700/sqm, featuring trendy restaurants, cafes, and a growing arts scene. Limited luxury options and smaller properties characterize this emerging neighborhood.

**Las Acacias and Peñarol** provide budget entry points at $750-$875/sqm, offering authentic local atmosphere and potential for future appreciation. These areas are more distant from central amenities and less developed infrastructure.

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.

What are the day-to-day living costs beyond housing in Montevideo?

Montevideo offers relatively affordable living costs compared to other major South American capitals.

Grocery expenses typically range from $350-$500 per month for one person, with local markets offering fresh produce at competitive prices. Imported goods cost more, but local alternatives are generally high quality and affordable. Utilities for an average apartment run $80-$130 monthly, including electricity, water, internet, and building maintenance fees.

Transportation costs are reasonable at $35-$60 per month for public transport, which includes buses and the efficient Metrobus system. Many residents use bicycles, and the city has been expanding bike lanes along the coastal areas. Dining out ranges from $10 for casual meals to $35 for upscale restaurants per person.

Private health insurance costs $80-$120 monthly for comprehensive coverage, providing access to excellent healthcare facilities. Uruguay's healthcare system ranks among the best in Latin America, with both public and private options available to residents.

How is expat life in Montevideo regarding community, safety, and lifestyle?

Montevideo hosts a large and growing expat community that creates a welcoming environment for international residents.

The expat community includes retirees from North America and Europe, business professionals from Argentina and Brazil, and younger individuals seeking alternative lifestyles. English is widely spoken in tourist and business areas, and many locals are learning English to engage with the international community. Regular social events, cultural activities, and business networking opportunities help newcomers integrate quickly.

Safety levels are high compared to other Latin American capitals, with violent crime rates significantly lower than regional averages. The stable political environment and strong democratic institutions contribute to overall security. However, like any urban area, petty theft can occur, particularly in tourist zones and at night.

The lifestyle emphasizes work-life balance, with the famous Rambla coastal walkway providing 22 kilometers of waterfront recreation. Montevideo offers excellent parks, a vibrant arts scene, high-quality healthcare, and easy access to beaches and countryside. The city maintains a relaxed pace while providing modern amenities and services expected by international residents.

It's something we develop in our Uruguay property pack.

What areas and strategies work best for long-term rental income?

Long-term rental success in Montevideo depends on targeting the right neighborhoods and tenant demographics.

**Best performing areas** include Malvín, Pocitos, and Punta Carretas for families and professionals seeking quality lifestyle amenities. Cordón attracts students and young professionals with its trendy atmosphere and affordable rents. Carrasco commands premium rents from expat families and executives who prioritize security and schools.

**Target tenant types** include local families seeking good schools and transport links, young professionals working in finance and technology sectors, international expats on company relocations, and university students attending nearby institutions. Each group has specific requirements for location, amenities, and price points.

**Rental yields** typically range from 4-6% gross annually, with some growth districts achieving up to 7%. Properties near universities, business districts, and transport hubs tend to maintain higher occupancy rates and command premium rents. Furnished properties can achieve 15-25% higher rents but require more maintenance and management.

**Tenant preferences** prioritize proximity to public transport, schools, and workplaces. Modern amenities such as updated kitchens, reliable internet, security systems, and parking significantly impact rental rates and tenant retention. Air conditioning and outdoor space have become increasingly important post-pandemic.

How profitable is short-term rental and what should you know about regulations?

Short-term rental can generate higher returns than long-term leasing but requires more active management and market knowledge.

**Prime areas** for short-term rental include Pocitos, Punta Carretas, and Ciudad Vieja, which attract tourists and business travelers year-round. These locations offer easy access to beaches, restaurants, cultural attractions, and business districts. Properties with ocean views, modern amenities, and unique character command the highest nightly rates.

**Guest demographics** include international tourists exploring Uruguay, business travelers attending conferences or meetings, students visiting universities, and regional visitors from Argentina and Brazil. Peak seasons run from December through March (summer) and during major events and conferences.

**Returns** can significantly exceed long-term rental yields, with occupancy rates of 60-80% common during peak seasons. Nightly rates vary from $40-60 for basic apartments to $150+ for luxury properties in prime locations. However, higher returns come with increased costs for cleaning, maintenance, marketing, and management.

**Regulations** currently impose no legal restrictions on foreigners operating short-term rentals in Montevideo. However, individual condominium buildings may have rules limiting or prohibiting short-term rentals, so buyers should verify building regulations before purchasing. Tax obligations include declaring rental income and paying applicable taxes on earnings.

Is buying property in Montevideo actually worth it in 2025?

Buying property in Montevideo in 2025 represents a solid investment opportunity across multiple scenarios.

**For living purposes**, the market offers strong stability, excellent quality of life, and straightforward ownership rights for foreigners. The combination of affordable living costs, safety, healthcare quality, and expat community support makes Montevideo attractive for relocation. Property ownership provides security and potential appreciation while avoiding the uncertainty of rental markets.

**For rental investment**, Montevideo delivers attractive yields of 4-6% with high occupancy rates and steady demand from both local and international tenants. The legal framework protects landlord rights while maintaining reasonable tenant protections. Market fundamentals support continued rental demand from students, professionals, and expats.

**For capital appreciation**, the market shows moderate but consistent growth patterns with 3-5% annual appreciation expected. Coastal neighborhoods and emerging areas offer the best potential for above-average returns. While not a high-growth speculation market, Montevideo provides steady, reliable appreciation that protects against inflation.

The investment works best for buyers planning to hold properties for at least 3-5 years, allowing time to benefit from both rental income and capital appreciation. Uruguay's political stability, transparent legal system, and growing international recognition as a safe haven make it particularly appealing for diversifying investment portfolios beyond traditional markets.

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.

Sources

1. La Cite Uruguay - Buying in Montevideo Property Guide
2. The LatinVestor - Montevideo Property Market Analysis
3. The LatinVestor - Best Areas in Montevideo
4. The LatinVestor - Average House Prices in Uruguay
5. Global Property Guide - Uruguay Rental Yields
6. Global Property Guide - Uruguay Home Price Trends
7. The LatinVestor - Uruguay Price Forecasts
8. The LatinVestor - Montevideo Real Estate Market Report