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
Where are the best places to invest in Montevideo right now? Is Pocitos still the top pick, or are neighborhoods like Carrasco, Ciudad Vieja, and Punta Carretas gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Montevideo and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Malvín is attracting interest for its family-friendly vibe and lower property prices, offering strong investment potential compared to nearby areas
Malvín is quickly becoming a favorite spot for families due to its appealing property prices.
Families are flocking to Malvín because the average house price is about $3,503 per square meter, which is more affordable than in areas like Villa Biarritz and Carrasco. This makes it a smart choice for those wanting to buy a home without overspending.
Local schools are seeing more enrollments, indicating that more families are settling in Malvín. The neighborhood is loved for its family-friendly vibe, with plenty of parks and schools that residents rave about.
Safety is another big draw, as Malvín is considered safer than many other parts of Montevideo. This peace of mind is crucial for families deciding where to live.
Property values in Malvín are on the rise, thanks to ongoing gentrification and new transport links. This not only makes it a great place to live but also a wise investment.
With its combination of affordability, safety, and growth, Malvín offers a promising opportunity for homebuyers looking for both a home and an investment.
Source: Global Property Guide
2) Centro is gaining interest with affordable property prices and developers revitalizing historic buildings
Centro is experiencing a resurgence thanks to its affordable property prices and growing interest from developers.
In recent years, property transactions in Centro have surged, making a noticeable impact on Montevideo's real estate market. This buzz is largely because Centro's property prices are more budget-friendly compared to pricier areas like Pocitos and Carrasco.
Take Ciudad Vieja, a part of Centro, where in 2024, the average price for a studio was $100,000. This is a steal compared to other neighborhoods, making Centro a hot spot for both homebuyers and investors. Plus, property values here are climbing, thanks to urban regeneration projects and better public transport.
There's also been a noticeable uptick in building permits for renovations and new developments. This is largely due to government initiatives aimed at urban renewal and infrastructure upgrades. Developers are eyeing Centro's potential, with luxury housing projects and heritage building renovations in the works.
These efforts are not just about new builds; they're about breathing new life into historic structures. This is attracting more interest and pushing property values even higher. Centro is becoming a blend of the old and new, with a unique charm that's hard to resist.
With all these changes, Centro is quickly becoming a prime location for those looking to invest in Montevideo's real estate market. The combination of affordable prices and a vibrant development scene is making it a top choice for many.
Source: Global Property Guide
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.
3) Cordón is gaining interest for its central location and affordable homes, appealing to first-time buyers and investors
Cordón in Montevideo is becoming a hot spot for property buyers.
In early 2023, Cordón made up 17.3% of all property deals in Montevideo, showing its growing appeal. This neighborhood is drawing attention because of its central location and affordable housing, making it a favorite for first-time buyers and investors. The overall property market in Uruguay saw a 15% rise in transactions in 2022, with Cordón being a key player in this trend.
What makes Cordón stand out is its lower property prices compared to other central areas. You can find a new studio apartment for about $95,000, and a two-bedroom for around $160,000. These prices are quite attractive for those entering the market or looking for a good investment.
The neighborhood is also seeing a wave of younger residents, thanks to immigration and demographic changes. Cordón is now a trendy spot for Montevideo’s young professionals, with its gourmet coffee shops, craft beer bars, and art galleries. This shift is boosting the demand for affordable homes in the area.
For those considering a move, Cordón offers a vibrant lifestyle without breaking the bank. Its central location means you’re never far from the action, yet you can still find a place that fits your budget. This balance of affordability and convenience is why Cordón is on the radar for many.
As more people discover what Cordón has to offer, its popularity is only expected to grow. Whether you’re a first-time buyer or an investor, this neighborhood presents a promising opportunity. Its mix of culture, affordability, and centrality makes it a unique find in Montevideo.
Sources: Global Property Guide, Overseas Dream Home, International Living
4) Tres Cruces is gaining attention as a transport hub with new infrastructure, boosting residential and commercial investment appeal
Tres Cruces is quickly becoming a major transport hub in Uruguay.
Thanks to significant government investments in infrastructure, the area is transforming rapidly. In 2023, Uruguay committed to a massive US$900 million for road improvements, including the extension of the perimeter ring from Route 5 to Route 1. This is all about upgrading the road network to handle more vehicles and cargo.
The Tres Cruces Bus Station is a key player in this transformation. Since 1994, it has been a vital hub for both national and international travel, serving around 20 million passengers each year. It's not just a transit point; it also features a shopping center, making it a lively spot.
Property values around Tres Cruces are on the rise, driven by high demand and limited supply. The area is buzzing with activity, thanks to the restoration of landmarks and new cultural projects. This makes it a hot spot for both residential and commercial investments.
With these developments, Tres Cruces is becoming more appealing for those looking to invest in property. The combination of improved infrastructure and cultural growth is creating a unique opportunity for buyers.
As the area continues to evolve, it offers a blend of convenience and vibrancy, making it an attractive choice for potential property owners.
Sources: Tres Cruces Bus Station - Wikipedia, Uruguay Foresees Investment of US$900mn in Road Works in 2023 - Bnamericas
5) Carrasco is gaining interest for its luxury properties and large plots, promising strong appreciation for high-end investors
Carrasco is now a prime spot for luxury real estate, catching the eye of high-end investors.
Why the buzz? Well, property prices are climbing here, thanks to a shift towards hybrid workspaces and a growing need for homes near business hubs. Back in 2022, Carrasco's average house price hit $3,862 per square meter, making it one of Montevideo's priciest neighborhoods.
Foreign investors are flocking to Carrasco, drawn by its reputation as a safe and desirable place to live in South America. Argentine high-net-worth individuals make up two-thirds of these investors, with many eyeing Carrasco for its exclusive, luxurious homes and peaceful suburban vibe.
Expect property appreciation rates in Carrasco to rise by 3%, 5%, and 7% in 2025, depending on the property type and demand. The neighborhood's exclusivity and the demand for high-quality living spaces are key drivers of its high appreciation potential.
Real estate market analyses spotlight Carrasco as one of Montevideo's most exclusive areas. Its luxurious homes and serene atmosphere make it a top choice for investors seeking high returns.
Sources: Global Property Guide, MercoPress
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6) Parque Rodó is popular for its vibrant cultural scene and closeness to educational institutions, boosting rental demand
Parque Rodó is a hotspot in Montevideo, buzzing with culture and close to top schools.
Imagine living in a place where art exhibitions and community events are the norm. This lively atmosphere makes Parque Rodó a magnet for both locals and tourists, boosting its appeal as a rental hotspot. The area is dotted with cultural gems, including a quaint museum and a scenic lake, adding to its unique charm.
Being near the University of the Republic, a top-notch university in Uruguay, is a big draw. Students and young professionals flock here, eager to live close to their educational and work hubs. This influx of renters keeps the area buzzing and in demand.
Rental properties in Parque Rodó are in high demand, with a median occupancy rate of 66%. This shows just how popular the area is among renters. The average daily rental rate stands at $51, reflecting the neighborhood's desirability.
Living in Parque Rodó means being part of a vibrant community, where cultural events and educational opportunities are just around the corner. The neighborhood's unique blend of culture and convenience makes it a top choice for many.
Whether you're a student, a young professional, or someone who loves being in the heart of cultural happenings, Parque Rodó offers a lifestyle that's hard to resist. Its proximity to educational institutions and cultural attractions keeps the rental market thriving.
7) Ciudad Vieja is trending for its cultural significance and urban renewal projects boosting property values
Ciudad Vieja is becoming a hot spot for investors, thanks to its rich culture and urban renewal projects.
In recent years, property prices in Ciudad Vieja have been climbing, fueled by these renewal efforts and the area's reputation as a safe and desirable place to live. The buzz around Ciudad Vieja is clear from the rising number of real estate deals happening here. This surge is backed by a lively cultural scene and urban regeneration projects that are making the area more appealing to both locals and investors.
The Municipality of Montevideo is playing a big role with initiatives like Reactor Ciudad Vieja, which aims to turn empty buildings into community spaces through participative processes. This is part of a broader effort to breathe new life into the area, making it a vibrant and fashionable neighborhood.
Media outlets often spotlight Ciudad Vieja's cultural gems, such as Sarandí Street and the Mercado del Puerto, highlighting the ongoing revitalization. The area is also experiencing a boom in new businesses and restaurants, which adds to its charm for investors. This growth is a testament to the successful urban renewal efforts.
As more people discover Ciudad Vieja's unique blend of history and modernity, the neighborhood continues to attract attention. The combination of cultural significance and strategic urban projects is turning it into a prime location for property investment.
With its mix of old-world charm and new-world opportunities, Ciudad Vieja is fast becoming a sought-after destination for those looking to invest in a promising area.
Sources: Sens Public, Citiesabc
8) Villa Biarritz is gaining popularity for its green spaces and weekly markets, enhancing quality of life and boosting real estate interest
Villa Biarritz is quickly becoming a favorite spot thanks to its lush green spaces and lively weekly markets.
Montevideo's action plan is all about enhancing these green areas and promoting community activities, which aligns perfectly with the city's goals for environmental and cultural engagement. This focus has likely led to increased resident satisfaction, as people now enjoy more organized and cleaner environments.
The weekly markets are buzzing with more foot traffic and vendor participation, a direct result of these improvements. The local government is actively working to maintain and improve parks and markets, which adds to the area's charm. These efforts are part of a broader strategy to boost citizen participation and improve living conditions.
Looking at similar markets, like those in Italy, we see rising property values, suggesting that Villa Biarritz might be on a similar path. If the neighborhood is highlighted as desirable due to its green spaces and markets, it naturally attracts more residents and investors, boosting real estate interest.
Insider knowledge tells us that the local government's initiatives are not just about aesthetics; they aim to create a vibrant community hub. This approach is making Villa Biarritz a sought-after location, enhancing the quality of life for its residents.
As more people discover the charm of Villa Biarritz, the demand for property in the area is likely to increase. The combination of green spaces and community activities is a winning formula, drawing attention from potential buyers and investors alike.
Sources: Open Government Partnership, PwC Real Estate Market Overview, CaixaBank Research
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
Related analyses:
- Overview of the current state of the real estate market in Montevideo