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SUMMARY
We analyzed apartment rental yields in Montevideo, as of May 2026, for residential apartment buyers, using the raw dataset provided and turning it into a practical neighborhood-by-neighborhood rental yield guide.
The article is built for foreign individual buyers who want to understand what kind of rental income in Montevideo is realistic before buying an apartment.
We update this research regularly, so the numbers should be read as a current Montevideo apartment yield snapshot, not as a permanent forecast.
The strongest yield signal in the dataset comes from studios. Studio apartments usually produce the highest estimated returns because the purchase price is lower while monthly rent remains efficient.
Ciudad Vieja has the highest estimated studio net yield in the table, at 6.7%, followed by Centro and Palermo at 6.4%, and Barrio Sur, Cordón and Tres Cruces at 6.3%.
Cordón is the clearest beginner-friendly yield area because it combines central demand, practical rents, and stronger liquidity than Ciudad Vieja or weaker parts of Centro.
Parque Rodó also looks balanced. Its studio net yield is estimated at 6.1%, while its 1-bedroom net yield is 5.4%, supported by lifestyle demand, beach access, park access, and young professional renters.
Pocitos, Punta Carretas and Carrasco are desirable places to live, but they are not always the most efficient income markets. Higher purchase prices can reduce net yield even when rent levels are strong.
The weakest pure-yield profile is usually found in 2-bedroom apartments in premium areas. Pocitos and Punta Carretas 2-bedroom apartments both show about 4.6% net yield, which is stable but not aggressive for income investors.
For a beginner foreign buyer, the safest Montevideo apartment rental yield strategy is usually a well-located 1-bedroom apartment in Cordón, Parque Rodó, Buceo, Pocitos, or Malvín, with studios reserved for very strong micro-locations.
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Neighborhoods and apartment rental yields in Montevideo in 2026
This table compares apartment rental yields in Montevideo by neighborhood and apartment type.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
Finally, please note you'll find much more detailed data in our real estate pack about Montevideo.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Barrio Sur | UYU 3,450,000 | UYU 25,000 | 8.7% | 6.3% | UYU 4,950,000 | UYU 32,000 | 7.8% | 5.6% | UYU 7,550,000 | UYU 43,000 | 6.8% | 4.9% |
| Buceo | UYU 3,850,000 | UYU 25,500 | 8.0% | 5.7% | UYU 5,650,000 | UYU 33,500 | 7.1% | 5.1% | UYU 8,450,000 | UYU 45,500 | 6.5% | 4.7% |
| Carrasco | UYU 5,650,000 | UYU 41,000 | 8.7% | 6.3% | UYU 8,750,000 | UYU 62,000 | 8.5% | 6.1% | UYU 13,650,000 | UYU 85,000 | 7.5% | 5.4% |
| Centro | UYU 3,050,000 | UYU 22,500 | 8.9% | 6.4% | UYU 4,550,000 | UYU 28,500 | 7.5% | 5.4% | UYU 6,850,000 | UYU 38,000 | 6.7% | 4.8% |
| Ciudad Vieja | UYU 2,850,000 | UYU 22,000 | 9.3% | 6.7% | UYU 4,250,000 | UYU 27,000 | 7.6% | 5.5% | UYU 6,450,000 | UYU 36,000 | 6.7% | 4.8% |
| Cordón | UYU 3,350,000 | UYU 24,500 | 8.8% | 6.3% | UYU 5,050,000 | UYU 32,000 | 7.6% | 5.5% | UYU 7,550,000 | UYU 42,000 | 6.7% | 4.8% |
| La Blanqueada | UYU 3,450,000 | UYU 23,500 | 8.2% | 5.9% | UYU 5,250,000 | UYU 31,000 | 7.1% | 5.1% | UYU 7,850,000 | UYU 41,500 | 6.3% | 4.6% |
| Malvín | UYU 4,150,000 | UYU 28,500 | 8.2% | 5.9% | UYU 6,450,000 | UYU 39,000 | 7.3% | 5.2% | UYU 9,850,000 | UYU 54,000 | 6.6% | 4.7% |
| Palermo | UYU 3,300,000 | UYU 24,500 | 8.9% | 6.4% | UYU 4,850,000 | UYU 31,000 | 7.7% | 5.5% | UYU 7,250,000 | UYU 40,500 | 6.7% | 4.8% |
| Parque Batlle | UYU 3,600,000 | UYU 24,500 | 8.2% | 5.9% | UYU 5,550,000 | UYU 32,500 | 7.0% | 5.1% | UYU 8,350,000 | UYU 44,000 | 6.3% | 4.6% |
| Parque Rodó | UYU 3,950,000 | UYU 28,000 | 8.5% | 6.1% | UYU 5,950,000 | UYU 37,000 | 7.5% | 5.4% | UYU 8,950,000 | UYU 50,000 | 6.7% | 4.8% |
| Pocitos | UYU 4,450,000 | UYU 30,000 | 8.1% | 5.8% | UYU 6,950,000 | UYU 41,000 | 7.1% | 5.1% | UYU 10,550,000 | UYU 56,000 | 6.4% | 4.6% |
| Punta Carretas | UYU 4,850,000 | UYU 34,000 | 8.4% | 6.1% | UYU 7,550,000 | UYU 46,000 | 7.3% | 5.3% | UYU 11,650,000 | UYU 62,000 | 6.4% | 4.6% |
| Tres Cruces | UYU 3,200,000 | UYU 23,500 | 8.8% | 6.3% | UYU 4,850,000 | UYU 30,000 | 7.4% | 5.3% | UYU 7,200,000 | UYU 39,500 | 6.6% | 4.7% |
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.
Which neighborhoods offer the best net yield among areas people actually want to live in Montevideo?
The best net-yield neighborhoods among areas people actually want to live in Montevideo are Cordón, Parque Rodó, Barrio Sur, Palermo and Buceo.
Cordón is the clearest beginner choice. Its estimated studio net yield is 6.3%, and its 1-bedroom net yield is 5.5%, while the area benefits from centrality, universities, public transport, hospitals nearby and dense services.
Parque Rodó is slightly more expensive, but it offers stronger lifestyle demand. A studio is estimated at 6.1% net, helped by park access, beach proximity, nightlife and young professional demand.
Barrio Sur and Palermo are higher-yielding but more selective. Their studio net yields are about 6.3% to 6.4%, but the investor must be stricter about building condition, street quality and noise.
Buceo is more conservative. Its studio net yield is lower at 5.7%, but it has coastal access, shopping, offices and a broader middle-class renter base.
The trade-off is simple. Cordón and Parque Rodó are better risk-adjusted choices, while Palermo, Barrio Sur and Ciudad Vieja require more local knowledge.
Where can I find apartments with above-average yields and below-average entry prices in Montevideo?
The best places for above-average yields and below-average entry prices in Montevideo are Ciudad Vieja, Centro, Tres Cruces, Cordón and Palermo.
These areas have lower purchase prices than Pocitos, Punta Carretas and Carrasco, but rents remain supported by central-city demand.
Ciudad Vieja has the lowest estimated studio entry price in the table, at UYU 2.85 million, and the highest estimated studio net yield, at 6.7%.
Centro is similar. A studio is estimated at UYU 3.05 million, with UYU 22,500 monthly rent and 6.4% net yield.
Cordón is more liquid than Ciudad Vieja. Its studio costs about UYU 3.35 million, but it still produces an estimated 6.3% net yield.
Tres Cruces is a practical value area. It has transport-hub demand and a studio net yield near 6.3%, but less lifestyle appeal than Parque Rodó or Pocitos.
The key distinction is that Cordón is true value, while Ciudad Vieja and parts of Centro are cheap partly because liquidity and building quality are less predictable.
Where does the rent level justify the purchase price most clearly in Montevideo?
The rent level most clearly justifies the purchase price in Montevideo in Cordón, Parque Rodó, Buceo and Malvín.
These neighborhoods have rents high enough to support the entry price without relying only on prestige.
Cordón's 1-bedroom rent of about UYU 32,000 against a purchase price of UYU 5.05 million gives a gross yield of 7.6% and net yield of 5.5%.
Parque Rodó also looks rational. A 1-bedroom apartment at about UYU 5.95 million and UYU 37,000 monthly rent gives 7.5% gross and 5.4% net.
Buceo is slightly lower-yielding but still balanced. It benefits from coastal access and shopping without the full Punta Carretas price premium.
Pocitos and Punta Carretas have high rents, but prices rise faster than rents. They are better for liquidity and lifestyle than pure yield.
We have actually built the our real estate pack about Montevideo to make sure you won’t buy in the wrong area. Check it out.
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Where is the best place to buy if I want stable rental income rather than maximum yield in Montevideo?
The best places for stable rental income in Montevideo are Pocitos, Cordón, Malvín, Parque Batlle and Buceo.
These are not always the highest-yielding areas, but they have deeper renter pools and more predictable leasing.
Pocitos has lower estimated net yields than Cordón, but it is one of Montevideo's deepest apartment markets. The dataset estimates Pocitos rents at UYU 30,000 for studios, UYU 41,000 for 1-bedroom apartments and UYU 56,000 for 2-bedroom apartments.
Cordón is stable because demand comes from several groups at once: students, young professionals, hospital workers, central employees and people who want urban services without Punta Carretas prices.
Malvín and Parque Batlle are more family- and professional-oriented. Their yields are moderate, with 2-bedroom net yields of 4.7% and 4.6%, but the tenant base is less speculative.
The trade-off is that stable income often means accepting a 4.6% to 5.5% net yield instead of chasing 6% plus headline yields in less liquid areas.
Which apartment type gives the best return for the lowest total investment in Montevideo?
The studio apartment gives the highest return for the lowest total investment in Montevideo, but the 1-bedroom apartment is usually the better beginner product.
Studios in the table often produce 5.7% to 6.7% net yields, with entry prices mostly between UYU 2.85 million and UYU 4.85 million, except Carrasco.
They work best in Cordón, Centro, Ciudad Vieja, Palermo, Parque Rodó and Tres Cruces, where small-unit demand is supported by centrality or lifestyle access.
The 1-bedroom apartment has a lower yield, usually around 5.1% to 5.6% net, but it has stronger resale depth and a broader tenant profile.
2-bedroom apartments provide higher absolute rent but lower yield. They work better for families in Malvín, Pocitos, Parque Batlle and Carrasco.
For a beginner, the answer is practical. Buy a 1-bedroom in Cordón, Parque Rodó, Buceo or Pocitos if you want liquidity, and buy a studio only if the location is very strong.
We give you more details in the our real estate pack about Montevideo.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Montevideo?
The strongest combination of rental income and low vacancy risk in Montevideo is in Pocitos, Punta Carretas, Cordón, Buceo and Malvín.
These neighborhoods have high tenant visibility and enough demand to reduce vacancy risk.
Pocitos has estimated monthly rents of UYU 30,000 for studios, UYU 41,000 for 1-bedroom apartments and UYU 56,000 for 2-bedroom apartments. The yield is not the highest, but the rental pool is deep.
Punta Carretas has higher rents, with UYU 34,000 for studios, UYU 46,000 for 1-bedroom apartments and UYU 62,000 for 2-bedroom apartments. It is attractive for tenants who value the rambla, shopping, restaurants and walkability.
Cordón has slightly lower rents than Pocitos but stronger income efficiency. It is more central, more affordable and better for yield.
The caution is Carrasco. It has very high rent levels, including UYU 85,000 for 2-bedroom apartments, but the pool is narrower and more dependent on affluent families, expats and premium tenants.
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.
Which areas look overpriced relative to their rental income in Montevideo?
The areas that look most expensive relative to rental income in Montevideo are Punta Carretas, Pocitos and parts of Carrasco.
They are excellent neighborhoods, but their purchase prices reduce rental-income efficiency.
Punta Carretas has a 2-bedroom net yield of only about 4.6%, despite an estimated monthly rent of UYU 62,000. The rent is high, but the purchase price is also high at UYU 11.65 million.
Pocitos is similar. A 2-bedroom apartment is estimated at UYU 10.55 million, producing about 4.6% net yield from UYU 56,000 monthly rent.
Carrasco is different. Its rents are very high, so yields look better, but entry prices and tenant selectivity create risk. Expensive units may sit longer if priced incorrectly.
These are not bad neighborhoods. They are prestige and liquidity neighborhoods, not the easiest places to maximize rental yield.
Which neighborhoods should I avoid even if the rental yield looks attractive in Montevideo?
Beginner investors should be cautious with Ciudad Vieja, parts of Centro, Palermo side streets and lower-quality Tres Cruces stock, even when the rental yield looks attractive in Montevideo.
Ciudad Vieja shows the highest estimated studio net yield at 6.7%, but that yield partly reflects lower purchase prices.
The risk in Ciudad Vieja is building condition, uneven street appeal and a smaller long-term residential tenant pool than in Pocitos or Cordón.
Centro can work well, but the investor must avoid noisy buildings, poorly maintained older apartments and units with weak natural light.
Palermo can be attractive near better-connected streets, but lower-quality stock may need repairs that reduce net yield.
The issue is not that these neighborhoods are bad. The issue is that headline yield can hide vacancy, maintenance and resale risk.
Which neighborhoods look risky even though the rental yield is high in Montevideo?
The high-yield but riskier Montevideo neighborhoods are Ciudad Vieja, Centro, Palermo and some Tres Cruces micro-locations.
Their yields can be strong, but the risk-adjusted return is less automatic.
Ciudad Vieja's studio yield is high because prices are low relative to rent. A studio is estimated at UYU 2.85 million and UYU 22,000 monthly rent, giving 9.3% gross and 6.7% net.
Centro has broad demand, but some blocks are more office-like than residential. That can affect night-time livability and tenant quality.
Tres Cruces has transport demand, but traffic and lack of charm can limit resale appeal.
A safer alternative is Cordón, where yields remain strong but tenant demand is broader and more consistent.
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What neighborhoods should I avoid when buying a rental apartment in Montevideo?
A beginner should avoid weakly located units in Ciudad Vieja, older poorly maintained Centro buildings, unattractive Palermo side streets and over-priced Carrasco apartments.
Ciudad Vieja should not be avoided completely. It should be avoided by beginners unless the building, block and tenant profile are very clear.
Centro should be avoided when the apartment depends only on low price. A cheap unit with bad light, high expenses or poor maintenance can lose the yield advantage quickly.
Palermo requires careful street selection. It can work near stronger lifestyle and transport nodes, but not all blocks have the same renter depth.
Carrasco should be avoided for yield-only investors when the price is too high. It is more suitable for lifestyle buyers or investors targeting premium tenants.
The practical rule is simple. Avoid apartments where the yield looks attractive only because the purchase price is low or because the unit has a problem the table cannot show.
Which neighborhoods are seeing rental demand weaken, and why, in Montevideo?
The clearest demand-softening risk in Montevideo is not one whole neighborhood, but specific product types in Ciudad Vieja, Centro, Palermo and high-priced coastal units.
In Ciudad Vieja and Centro, weaker demand usually appears in older units with poor condition, high common expenses or limited residential feel.
The neighborhood can still rent, but tenants become more selective when a unit has poor light, tired finishes, weak maintenance or a block that feels less residential.
In Palermo, demand can weaken where the apartment lacks modern finishes, good light or easy access to stronger lifestyle streets.
In Pocitos and Punta Carretas, the risk is affordability. Rents are high, so some tenants move toward Cordón, Buceo, La Blanqueada or Parque Batlle for better value.
This looks more like selective affordability pressure than structural decline across Montevideo.
Which neighborhoods are seeing new developments that could create stronger rental demand in Montevideo?
The neighborhoods most likely to benefit from demand-creating development in Montevideo are Cordón, La Blanqueada, Parque Batlle, Buceo and Tres Cruces.
Cordón benefits from central apartment development, universities, services and continued urban living demand.
La Blanqueada and Parque Batlle benefit from hospitals, education, transport corridors and practical middle-income demand.
Buceo benefits from coastal access, shopping and office-related demand, especially for renters who want newer buildings without Punta Carretas pricing.
Tres Cruces benefits from transport connectivity. The risk is that new supply must be matched by livability, because transport alone does not create premium rents.
The practical signal is to favor demand-creating development over supply-only stories. A new building helps the investor only if the tenant pool is also getting deeper.
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.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Montevideo?
The neighborhoods that have become less attractive for income investors in Montevideo are mainly Punta Carretas, Pocitos and prime Carrasco, because prices remain high relative to rent.
These neighborhoods are still desirable. The problem is not demand, but yield compression.
Punta Carretas and Pocitos are liquid and easy to understand, so many buyers compete for the same stock. That pushes purchase prices up and reduces net rental yield.
Punta Carretas 2-bedroom apartments show about 4.6% net yield, and Pocitos 2-bedroom apartments show the same 4.6% net yield. That is usable, but it is not the strongest income return in the table.
Carrasco can still produce high rents, including UYU 62,000 for 1-bedroom apartments and UYU 85,000 for 2-bedroom apartments, but the entry ticket is large and the tenant pool is narrower.
The recommendation is to buy these areas only when the unit has a clear advantage: below-market price, excellent layout, low expenses, parking where needed, or unusually strong rentability.
Which apartment types are becoming harder to rent in Montevideo, and in which neighborhoods?
The apartment types becoming harder to rent in Montevideo are overpriced studios in weaker central buildings, expensive 2-bedroom apartments in premium coastal areas and older 1-bedroom apartments with high common expenses.
Studios still work well in Cordón, Centro, Parque Rodó and Tres Cruces. They become harder in poor-condition buildings or streets with weak residential appeal.
1-bedroom apartments remain the most liquid product in Montevideo because they balance rentability, budget, and resale depth better than studios or 2-bedroom apartments.
2-bedroom apartments are strongest in Malvín, Pocitos, Parque Batlle and Carrasco, where families and higher-income tenants make more sense.
They are weaker when priced like premium family units but located in areas dominated by single renters, students or younger professionals.
The practical rule is to buy studios only in very liquid micro-locations, buy 1-bedroom apartments for balance, and buy 2-bedroom apartments only where family demand is obvious.
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INSIGHTS
These insights are drawn from the Montevideo apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Montevideo.
- Montevideo studios usually give the highest yield, but they do not always give the deepest tenant pool. The small format is efficient, yet the unit still needs good light, a strong building and a location tenants can understand quickly.
- Cordón studios combine high yield with real renter demand near central Montevideo. The estimated 6.3% studio net yield is useful because it is supported by universities, services, hospitals, transport and central work access.
- Pocitos rents are strong, but purchase prices compress net yields. This makes Pocitos a stability and liquidity market more than a maximum-yield market.
- Ciudad Vieja has high yields, but beginner investors face higher liquidity risk. A 6.7% studio net yield is attractive, but the buyer must be stricter about the exact block and building condition.
- Carrasco rents are exceptional, but the buyer pool is narrower and more lifestyle-led. High rents do not remove the risk of a longer tenant search when the unit is expensive or too specific.
- 1-bedroom apartments are Montevideo's best balance between rentability and resale liquidity. They usually give lower yield than studios, but they fit more tenants and more future buyers.
- 2-bedroom apartments usually give lower yields, but stronger family tenant stability. They make more sense in Malvín, Pocitos, Parque Batlle and Carrasco than in areas dominated by single renters.
- Parque Rodó looks balanced because rents stay high without Punta Carretas pricing. The area has lifestyle demand, central access and student or young professional appeal.
- Tres Cruces works best for practical renters, not prestige-focused foreign buyers. The transport logic is strong, but the lifestyle and resale story must be checked building by building.
- La Blanqueada offers decent yields, but block selection matters more than in Pocitos. Hospitals, transport and middle-income renters support the area, but not every street has the same appeal.
- Buceo is a useful middle market between coastal demand and lower entry prices. It is not the highest-yield neighborhood, but it offers a practical mix of rentability, lifestyle and tenant depth.
- Malvín is safer for stable tenants than for maximum Montevideo rental yield. The numbers are moderate, but the area can suit professional and family renters who value residential calm.
- Palermo and Barrio Sur reward careful buying, but older buildings can reduce net yield. Repair costs, common expenses, noise and maintenance can turn a strong gross yield into a weaker real return.
- Punta Carretas is excellent to live in, but expensive for income-only investors. The area is desirable, yet the high purchase price makes it harder to maximize rental yield.
- Montevideo's strongest beginner product remains the well-located 1-bedroom apartment. It is rarely the highest-yielding format, but it gives the best balance of tenant demand, resale depth and operational simplicity.
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OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and apartment rental yield in Montevideo neighborhoods, we built the dataset manually from the ground up. We did not reuse a third-party yield dataset.
For each neighborhood and apartment type covered in the tracker, we manually researched current residential sale listings and rental listings across major Uruguay property platforms such as Mercado Libre Uruguay, InfoCasas, and Gallito.
First, we collected sale listings for studios, 1-bedroom apartments, and 2-bedroom apartments in each Montevideo neighborhood. We then cleaned the sample and kept only reasonably comparable properties based on location, property type, size, condition, and listing quality.
Duplicate listings, luxury outliers, distressed assets, serviced-style offers, incomplete listings, unrealistic asking prices and clearly non-comparable properties were removed because they would distort the estimate.
We estimated a realistic purchase price using the median price as the main reference where possible. We used the average only when the comparable sample was clean enough and not distorted by unusual listings.
We then built the rental side of the dataset separately. For the same neighborhood and apartment type, we collected comparable rental listings, removed outliers and non-comparable units, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were researched separately, then matched by neighborhood and apartment type to estimate gross rental yield. Gross rental yield is calculated as annual rent divided by estimated purchase price.
To estimate net yield, we adjusted the gross yield for costs and risks that matter in each segment. These include vacancy risk, maintenance, management costs, agent fees, tax friction, repairs, insurance, building expenses and other owner-side operating costs.
We did not apply one flat deduction to every property. The deduction is adjusted by neighborhood and property type because a small central apartment, an older building in the historic center and a higher-ticket coastal apartment do not have the same operating cost profile.
Each estimate is assigned an internal confidence level based on the size and quality of the comparable listing sample. Thirty to forty comparable listings means higher confidence, twenty to thirty means usable but less robust, and fewer than twenty means directional only unless the comparable area is widened.
These estimates are updated regularly and should be read as structured market estimates, not as guarantees of future rental income. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Montevideo.
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