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
Montevideo's real estate market in 2026 continues to attract both local buyers and international investors looking for stability in Latin America.
In this article, we cover everything you need to know about buying residential property in Montevideo, including current housing prices, market trends, neighborhood dynamics, and what to expect as a foreign buyer.
We constantly update this blog post to give you the freshest data available on the Montevideo property market.
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.
How's the real estate market going in Montevideo in 2026?
What's the average days-on-market in Montevideo in 2026?
As of early 2026, the average days-on-market for a typical residential property in Montevideo is around 85 days, which means most homes sell within about three months of being listed.
That said, the realistic range covers quite a bit of ground: well-priced apartments in popular neighborhoods like Pocitos or Punta Carretas often sell in 45 to 70 days, while properties in less central areas or those needing renovation can sit on the market for 100 to 140 days.
Compared to a year or two ago, Montevideo's days-on-market has remained relatively stable, with properties still moving at a healthy pace and no signs of either a buying frenzy or a market freeze.
Are properties selling above or below asking in Montevideo in 2026?
As of early 2026, homes in Montevideo typically close at around 4% to 6% below the initial asking price, which means negotiation is normal and expected in this market.
The vast majority of properties sell at or below asking price, with above-asking sales being quite rare and representing less than 10% of transactions, though our confidence in this estimate is moderate since Uruguay does not publish a citywide sale-to-list ratio.
The exceptions tend to be new-build apartments in high-demand locations like Pocitos, Cordón, or Punta Carretas, where turnkey units under the "Vivienda Promovida" program sometimes sell at or just 1% to 3% below asking due to limited supply and strong investor interest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Montevideo.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Uruguay. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Montevideo?
What property types dominate in Montevideo right now?
In Montevideo's real estate market in 2026, apartments make up roughly 72% of buyer demand while houses account for about 28%, making condos and flats the clear dominant property type.
Apartments are by far the most common residential property available for sale in Montevideo, especially smaller units like studios and one-bedroom flats that attract both local buyers and investors.
This apartment-heavy market developed because Montevideo is a dense urban capital where most people prefer the convenience, security, and lower maintenance of condo living, and because government programs like "Vivienda Promovida" have encouraged new apartment construction in central neighborhoods.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Montevideo right now?
New-build properties represent a significant share of Montevideo's residential listings in 2026, largely thanks to the government's "Vivienda Promovida" tax incentive program that has encouraged developers to build new apartment projects across the city.
As of early 2026, the highest concentration of new-build developments in Montevideo can be found in neighborhoods like Cordón, Centro, Tres Cruces, and La Blanqueada, as well as in coastal areas such as Pocitos and Punta Carretas where investor demand remains strong.
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Which neighborhoods are improving fastest in Montevideo in 2026?
Which areas in Montevideo are gentrifying in 2026?
As of early 2026, the neighborhoods showing the clearest signs of gentrification in Montevideo are Ciudad Vieja, Centro, Cordón, Barrio Sur, Palermo, and pockets of Goes and La Aguada.
In Ciudad Vieja specifically, you can see new cafes, coworking spaces, art galleries, and tech startups opening alongside building renovations, while the local government offers multi-year tax exemptions to encourage both residential and commercial activity in this historic district.
Price appreciation in these gentrifying areas over the past two to three years has been estimated at around 5% to 10% annually, though exact figures vary block by block and depend heavily on building condition and specific location within each neighborhood.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Montevideo.
Where are infrastructure projects boosting demand in Montevideo in 2026?
As of early 2026, the top areas in Montevideo where major infrastructure projects are boosting housing demand include the Rambla Sur coastal strip near Teatro de Verano and the Centro/Ciudad Vieja corridor near the Port of Montevideo.
The specific projects driving this demand are the "Late la Rambla" public space upgrade along the southern coastline and the Port of Montevideo expansion, which is creating jobs and commercial activity along the city's central axis.
The Port of Montevideo's initial expansion phase was completed in May 2025, while the Late la Rambla works are ongoing with improvements rolling out over the next two to three years.
In Montevideo, the typical price impact tends to be gradual: properties near announced projects may see modest 3% to 5% premiums during construction, with stronger appreciation of 8% to 15% materializing once projects are completed and the improvements become tangible.
We have made this infographic to give you a quick and clear snapshot of the property market in Uruguay. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What do locals and insiders say the market feels like in Montevideo?
Do people think homes are overpriced in Montevideo in 2026?
As of early 2026, the general sentiment in Montevideo is that prime coastal neighborhoods like Pocitos, Punta Carretas, and Carrasco feel expensive, while mid-city areas like Cordón, Tres Cruces, and Centro are seen as more negotiable and value-oriented.
Locals who argue that Montevideo homes are overpriced typically point to the fact that listings sit on the market for about three months on average and that sellers frequently accept 4% to 6% discounts, which suggests asking prices are often set too high.
On the other hand, those who believe prices are fair argue that Uruguay's political stability, strong rule of law, and dollar-denominated transactions justify premium pricing compared to neighboring countries like Argentina.
Montevideo's price-to-income ratio is relatively high by Uruguayan standards, but it remains more accessible than many regional capitals, and the city's rental yields of around 5% help support current valuations.
What are common buyer mistakes people regret in Montevideo right now?
The most frequently cited buyer mistake in Montevideo is underestimating the importance of building health, specifically the "gastos comunes" (monthly maintenance fees) and the overall condition of older apartment towers, which can lead to unexpected costs and headaches after purchase.
The second most common regret is not verifying paperwork early enough, since Uruguay relies heavily on the escribano (notary) system for title verification and registry checks, and choosing a notary who is truly independent and working in your interest is essential to avoid legal surprises.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Montevideo.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Montevideo.
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How easy is it for foreigners to buy in Montevideo in 2026?
Do foreigners face extra challenges in Montevideo right now?
Overall, foreigners face a moderate difficulty level when buying property in Montevideo compared to local buyers, since there are no legal restrictions on foreign ownership but practical hurdles around banking, documentation, and speed can slow things down.
Uruguay does not impose any specific legal restrictions on foreign property buyers, meaning you have the same freehold ownership rights as Uruguayan citizens with no quotas or special permits required.
The practical challenges foreigners most commonly encounter in Montevideo include opening a local bank account (which requires proof of address and income source), getting documents translated and apostilled, and competing with cash-ready local buyers when a well-priced property hits the market.
We will tell you more in our blog article about foreigner property ownership in Montevideo.
Do banks lend to foreigners in Montevideo in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Montevideo, but options are more limited and selective than for residents, with major banks like HSBC and Santander offering specific non-resident mortgage products.
Foreign buyers can typically expect loan-to-value ratios of 50% to 70% (meaning you need a 30% to 50% down payment) and interest rates ranging from 6% to 10% depending on the bank and your financial profile.
Banks in Montevideo generally require foreign applicants to provide proof of income (often from their home country), tax returns, bank statements, a valid passport, and sometimes a local guarantor or additional collateral.
You can also read our latest update about mortgage and interest rates in Uruguay.
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.
How risky is buying in Montevideo compared to other nearby markets?
Is Montevideo more volatile than nearby places in 2026?
As of early 2026, Montevideo's property market is significantly less volatile than Buenos Aires (Argentina) and roughly comparable to Santiago (Chile), thanks to Uruguay's stable macroeconomic framework and dollar-denominated transactions.
Over the past decade, Montevideo has experienced relatively modest price swings of 2% to 5% annually in real terms, while Buenos Aires has seen dramatic fluctuations tied to currency crises, and Santiago has had its own ups and downs linked to political and economic uncertainty.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Montevideo.
Is Montevideo resilient during downturns historically?
Historically, Montevideo's property market has shown good resilience during economic downturns, with prices typically experiencing slower sales and more negotiation rather than dramatic crashes or systemic failures.
During Uruguay's most recent major downturn (the 2002 banking crisis), Montevideo property prices dropped by roughly 20% to 30% in dollar terms, but recovery took about four to five years as the economy stabilized and confidence returned.
The property types that have historically held value best during downturns in Montevideo are well-maintained apartments in established neighborhoods like Pocitos, Punta Carretas, and Carrasco, where consistent rental demand provides a floor under prices even when sales slow.
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How strong is rental demand behind the scenes in Montevideo in 2026?
Is long-term rental demand growing in Montevideo in 2026?
As of early 2026, long-term rental demand in Montevideo is growing moderately, with rents increasing by about 5% to 6% annually in peso terms and vacancy rates remaining low at around 3% to 5%.
The main tenant demographics driving long-term rental demand in Montevideo are young professionals working in the city's growing tech sector, university students attending institutions in Cordón and Centro, and expatriates attracted by Uruguay's stability and quality of life.
The neighborhoods with the strongest long-term rental demand in Montevideo right now are Pocitos, Punta Carretas, Cordón, Centro, and La Blanqueada, where proximity to jobs, universities, and amenities keeps occupancy rates high.
You might want to check our latest analysis about rental yields in Montevideo.
Is short-term rental demand growing in Montevideo in 2026?
Montevideo currently has relatively lenient regulations for short-term rentals, with no city-level restrictions or rent controls, though individual condominium buildings may have their own rules limiting or prohibiting Airbnb-style operations.
As of early 2026, short-term rental demand in Montevideo is growing moderately, supported by increasing tourism arrivals and the city's appeal to digital nomads and business travelers.
The current estimated average occupancy rate for short-term rentals in Montevideo ranges from 50% to 65% depending on location and season, with properties in Ciudad Vieja, Pocitos, and Centro achieving the higher end of that range.
The main guest demographics driving short-term rental demand in Montevideo are regional tourists (especially from Argentina and Brazil), business travelers attending conferences, and a growing number of remote workers seeking medium-term stays of one to three months.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Montevideo.
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 are the realistic short-term and long-term projections for Montevideo in 2026?
What's the 12-month outlook for demand in Montevideo in 2026?
As of early 2026, the 12-month demand outlook for residential property in Montevideo is stable to slightly positive, with buyers remaining active but more price-sensitive than in previous years.
The key factors most likely to influence demand in Montevideo over the next 12 months are interest rate movements by the Central Bank, inflation expectations, and the overall health of the Uruguayan economy, which is projected to grow around 2.4% in 2026.
Based on current trends, Montevideo property prices are expected to rise by 2% to 4% in nominal terms over the next 12 months, which may translate to flat or slightly positive growth in real (inflation-adjusted) terms.
By the way, we also have an update regarding price forecasts in Uruguay.
What's the 3 to 5 year outlook for housing in Montevideo in 2026?
As of early 2026, the 3 to 5 year outlook for housing prices and demand in Montevideo is constructive, with the biggest gains likely coming from improving neighborhoods rather than already-premium coastal areas.
The major development projects expected to shape Montevideo over the next 3 to 5 years include continued expansion of the Port of Montevideo, completion of the Late la Rambla coastal improvements, and ongoing urban renewal in Ciudad Vieja supported by municipal tax incentives.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Montevideo is a potential economic shock from Argentina, which historically has spillover effects on Uruguay's economy and foreign buyer demand.
Are demographics or other trends pushing prices up in Montevideo in 2026?
As of early 2026, demographic trends are having a modest positive impact on housing prices in Montevideo, driven mainly by steady urban migration and growing interest from foreign residents seeking stability.
The specific demographic shifts most affecting prices in Montevideo include continued internal migration from Uruguay's interior to the capital, a growing community of Argentine and Brazilian buyers fleeing economic uncertainty, and European retirees attracted by quality of life and safety.
Beyond demographics, Montevideo is also seeing price pressure from lifestyle trends like remote work (which has increased demand for apartments with home office space) and regional capital flows seeking rule-of-law jurisdictions.
These demographic and trend-driven price pressures are expected to continue for at least the next 3 to 5 years in Montevideo, as Uruguay's reputation for stability keeps attracting new residents and investors from less predictable neighboring markets.
What scenario would cause a downturn in Montevideo in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Montevideo would be a combination of global financial tightening (higher interest rates worldwide), a severe economic crisis in Argentina reducing foreign buyer demand, and potential oversupply in specific new-build micro-markets.
Early warning signs that such a downturn is beginning in Montevideo would include days-on-market stretching beyond 120 days consistently, sale-to-asking discounts widening beyond 10%, banks tightening mortgage requirements, and a noticeable drop in foreign buyer activity from Argentina and Brazil.
Based on historical patterns, a potential downturn in Montevideo would likely be moderate rather than severe, with prices falling 10% to 20% in real terms over two to three years before stabilizing, similar to what happened after the 2002 crisis.
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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 it's authoritative | How we used it |
|---|---|---|
| Uruguay National Institute of Statistics (INE) - Rental Market | It's Uruguay's official statistics agency publishing standardized housing indicators based on real contract data. | We use it to anchor rent inflation figures and validate rental market direction with official numbers. We also use it to avoid relying solely on asking rents from property portals. |
| INE - IAI Compraventa (Buy/Sell Bulletin) | It's an official transaction-based indicator showing actual closings, not just listings. | We use it to anchor price momentum using transaction medians and volumes. We also use it to reality-check private sector price claims. |
| InfoCasas - Radiografía 2024 | It's Uruguay's largest property portal with consistent annual methodology and large sample sizes. | We use it to estimate market liquidity and identify real neighborhood demand. We also use it as a listing-side counterweight to official transaction data. |
| Banco Central del Uruguay (BCU) | It's the central bank's official view of inflation expectations and monetary policy stance. | We use it to gauge macro conditions affecting mortgages and affordability. We also use it to understand whether financing conditions are tightening or easing. |
| Global Property Guide | It's a respected international real estate research firm with consistent methodology across countries. | We use it for rental yield calculations and price history comparisons. We also use it to benchmark Montevideo against regional markets. |
| Intendencia de Montevideo | It's the city government describing formal incentives and urban planning tools. | We use it to identify gentrification catalysts specific to Montevideo. We also use it to explain why certain neighborhoods may appreciate faster. |
| Ministry of Transport (MTOP) | It's a core infrastructure ministry documenting major project milestones. | We use it to identify job-driven demand near logistics corridors. We also use it to explain infrastructure-related price impacts. |
| IMF - World Economic Outlook | It's a top-tier international organization providing consistent macro forecasts. | We use it to frame external risk scenarios for Uruguay's economy. We also use it to stress-test property outlooks under different conditions. |
| HSBC Uruguay | It's a major international bank providing explicit written terms for foreign buyers. | We use it to validate that non-resident mortgage products exist in practice. We also use it to set realistic expectations about eligibility. |
| Ministry of Tourism (Uruguay) | It's the official dataset for visitor flows and spending that drive short-term rental demand. | We use it to validate whether short-term rental demand has a macro tailwind. We pair it with private data sources to avoid platform-only bias. |
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