Where is the best place to buy in Montevideo?

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A team specialized in real estate investing in LATAM countries

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What does a square meter cost in Montevideo's barrios?

Which areas in Montevideo have the highest property prices per square meter?

The most expensive apartments are in Carrasco (median asking price USD 4,370 per m²), Parque Rodó (USD 4,347), Punta Carretas (USD 4,184) and Pocitos (USD 3,956), according to INGAR's September 2026 report. TuLugar's October 2026 data puts the same barrios a little lower (Carrasco USD 4,123, Punta Carretas 4,055, Pocitos 3,863), because it samples different listings.

These are asking prices, not sale prices. At the INGAR median, a 70 m² two-bedroom lists around USD 277,000 in Pocitos, USD 293,000 in Punta Carretas and USD 306,000 in Carrasco. Inside each barrio, the best streets (Carrasco Sur, the Golf area of Punta Carretas, Puerto del Buceo) ask more than the median, but no portal publishes a reliable 2026 figure for them.

Why these areas cost more:

• Carrasco: low-rise, leafy, family-oriented, close to the airport and the international schools, but you'll need a car.
• Punta Carretas: the Rambla, the golf course, the shopping mall, and everything within walking distance.
• Parque Rodó: the park, the university and the Rambla, with a lot of new small units for young professionals.
• Pocitos: Montevideo's best-known beach, dense apartment towers, shops and cafés on every block.

Don't buy a flat here for the tax perks: a home above UI 3.5 million (about USD 580,000) plus 60 days a year still makes you a tax resident, but since Law 20.446 (January 2026) the 11-year tax holiday for new residents needs more than 183 days a year or property above UI 12.5 million (about USD 2.1 million), so pick the barrio for the rent or the life you want, not for the papers.

Which areas in Montevideo have the most affordable property prices?

Among the barrios with published data, the cheapest is Ciudad Vieja at USD 2,157 per m² (INGAR, September 2026; TuLugar shows USD 2,750 in October 2026, a different sample). Then come Centro (USD 3,026) and Cordón (USD 3,228).

At those prices, a 45 m² one-bedroom lists around USD 97,000 in Ciudad Vieja, USD 136,000 in Centro and USD 145,000 in Cordón. New promoted-housing units sold in Montevideo averaged USD 2,411 per built m² over the 12 months to April 2026 (ANV), a real sale price, not an asking price.

Outer barrios like Manga, Casabó, Las Acacias or Nuevo París are cheaper still, but we found no reliable 2026 price per m² for them, so we won't put a number on it. Ask a local escribano (notary) for recent sales before you trust a listing there.

The trade-offs are real: in Ciudad Vieja, building quality varies a lot and some streets go quiet at night; further out, buses are less frequent, good tenants take longer to find and resale is slower.

Which areas in Montevideo give the best rental yields?

Which neighborhoods in Montevideo have the highest gross rental yields?

The highest estimated gross yields are in Ciudad Vieja (about 7.0%), Centro and Cordón (about 6.2% each) and Buceo (5.6%), according to INGAR's September 2026 estimates on asking prices. The city median is 6.1%.

The prime coastal barrios yield less because prices are higher: Carrasco 5.5%, Malvín 5.4%, Pocitos 5.3%, Punta Carretas and Parque Rodó 5.1%.

Gross isn't what you keep. Take off the 10.5% IRNR withholding on gross rent (12% of taxable rent, DGI), about one month of vacancy, 8% management, and roughly 0.4% of the price a year for contribución inmobiliaria, Impuesto de Primaria and insurance. That's our estimate of net yield:

Older reports showed 10% to 13% gross in outer barrios like Manga, Casabó, Las Acacias or Colón Sureste. We couldn't verify any 2026 figure there, and a yield that high usually means the price is low for a reason: slow resale, tenants who pay late, longer gaps between leases.

Why the central barrios do best:

• Ciudad Vieja: the lowest price per m² in the data, with offices, the port and tourists nearby.
• Centro: the 18 de Julio commercial axis, offices and every bus line.
• Cordón: students and young workers near the universities, lots of new small units.
• Buceo: coastal, with shopping and offices, at a lower price than Pocitos next door.

Valeria C.Real estate agent

Today

Hi Valeria! Quiet and walkable, under US$ 250,000. Where should I look?11:02

A few good options. I’ll send you a short list with prices.11:11

Great, thanks!11:12

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Which areas in Montevideo work best for short-term rentals?

Which neighborhoods in Montevideo perform best on Airbnb?

Guests stay mostly in Ciudad Vieja (the old town, Mercado del Puerto, museums), Pocitos (the beach), Punta Carretas (the mall and the Rambla) and Centro (business travelers). AirROI doesn't publish barrio-level figures, so here is the city as a whole.

Over the 12 months to September 2026, the average Montevideo listing ran at 44% occupancy and UYU 2,936 (about USD 73) a night, for about UYU 312,000 (about USD 7,780) in yearly revenue (AirROI). One-bedroom entire homes did 47% at UYU 2,706 a night (UYU 313,000 a year); two-bedrooms 44% at UYU 3,837 (UYU 408,000 a year).

Compare that with an annual lease: a Pocitos one-bedroom at UYU 29,000 a month makes UYU 348,000 a year, and a two-bedroom at UYU 40,250 makes UYU 483,000, with no cleaning, platform fees or furniture to pay. On average, Airbnb in Montevideo earns less than a lease.

The season is mild: occupancy peaked at 55.6% in February 2026 and bottomed at 40.8% in June. There's no real high season to bank on, unlike Punta del Este.

What makes a listing beat the average:

• Ciudad Vieja: walkable to the Mercado del Puerto, museums and the port, but pick a lively block.
• Pocitos: beach, restaurants, safe streets, guests all year.
• Centro: theaters, offices and transport, weekday business demand.
• Punta Carretas: the mall, the Rambla, higher-budget guests.

Which tourist areas in Montevideo are becoming oversaturated with short-term rentals?

The pressure shows in Ciudad Vieja away from the main sights, in Centro (small studios competing on price) and in the parts of Pocitos near the main commercial streets.

Montevideo had 2,487 active Airbnb listings over the 12 months to September 2026, 32% more than a year earlier (AirROI), while average occupancy stayed at 44%. More listings chasing the same guests means lower prices for everyone who looks the same.

The clearest warning sign: fewer reviews per month on comparable flats and owners cutting rates in winter just to get bookings. If every unit in a building is on Airbnb, yours will compete with all of them.

Which areas in Montevideo are best for long-term rentals?

Which neighborhoods in Montevideo have the strongest demand for long-term tenants?

The steadiest demand is in Cordón (universities), Tres Cruces (the main bus terminal), Centro (offices and services) and Pocitos (the beach and cafés).

The market is soft right now: Montevideo asking rents were down 3.9% over the year to August 2026 (El País / Inmuebles Data). We found no reliable vacancy rate or time-to-rent figure by barrio. A well-priced unit in these areas leases fast; an overpriced one sits.

Who rents where:

• Cordón: students and young professionals at the Universidad de la República and nearby schools.
• Tres Cruces: commuters who use the bus terminal and people working downtown.
• Centro: office workers, public employees, tenants on a budget.
• Pocitos: young professionals, expat families and remote workers.

What these barrios have in common: frequent buses (especially on 18 de Julio, 8 de Octubre and Avenida Italia) and supermarkets, pharmacies and clinics within walking distance.

What are the average long-term monthly rents by neighborhood in Montevideo?

New listings in Montevideo asked an average of UYU 29,400 (about USD 730) for a one-bedroom and UYU 40,100 (about USD 1,000) for a two-bedroom in August 2026 (El País / Inmuebles Data). The average rent on all current leases in Uruguay, old ones included, was much lower at UYU 22,413 (about USD 560) (INE, August 2026).

By barrio, median advertised one-bedroom rents in October 2026 went from UYU 24,900 (USD 620) in Centro and UYU 25,000 (USD 625) in Buceo to UYU 34,500 (USD 860) in Punta Carretas and UYU 38,250 (USD 955) in Carrasco (Cambio Uruguay).

For a two-bedroom, expect around UYU 30,000 (USD 750) in Centro or Ciudad Vieja, UYU 33,700 to 33,900 (USD 840 to 845) in Buceo or Cordón, and UYU 40,000 to 42,000 (USD 1,000 to 1,050) in Pocitos, Malvín or Punta Carretas.

The top end is Carrasco, at about UYU 50,000 (USD 1,250) for a two-bedroom. We found no reliable 2026 rent for outer barrios. Leases are priced in pesos and adjusted once a year with the INE coefficient (4.55% for leases renewed in September 2026).

Which areas in Montevideo are up and coming?

Which neighborhoods in Montevideo are gentrifying and attracting new investors?

Cordón is the clearest case: it accounts for 26.4% of all promoted-housing (vivienda promovida) sales declared in Montevideo since the scheme began, against 7.0% for Centro (ANV, to May 2026). By number of approved units, Cordón leads by a wide margin, ahead of Tres Cruces, Centro, La Blanqueada, Palermo and Barrio Sur (Intendencia de Montevideo / ANV data to June 2026).

That's where new small-unit buildings are replacing old houses, and where investors are buying. Ciudad Vieja is the other bet: the cheapest price per m² in the data (USD 2,157) and a slow revival of restored buildings, but it's moving street by street, not as a whole barrio.

We found no reliable price-growth figure by barrio. In dollars, promoted-housing prices across Montevideo rose 5.1% over the 12 months to April 2026, but fell 2.2% in inflation-indexed units (UI).

Which areas in Montevideo have major infrastructure projects planned that will boost prices?

The project with the most direct effect on housing: in March 2026, the Intendencia de Montevideo signed an agreement to overhaul metropolitan transport, with bus rapid transit along 18 de Julio and the main corridors, and works planned over 2026-2029. Ciudad Vieja, Centro and Cordón sit right on it; the Avenida Italia (Buceo, Malvín) and 8 de Octubre (Tres Cruces, La Blanqueada) corridors already have bus lanes.

The Casupá dam for the city's water supply is moving slowly: OSE launched the international tender, works are expected in 2027, and the contract will only be awarded after environmental approval (El Observador, June 2026). It matters for water security, not for any one barrio's prices.

We found no reliable study measuring how much Montevideo prices rise after a corridor upgrade, so we won't give a figure. Expect the opposite for a while: years of works on 18 de Julio can hurt ground-floor shops and rents along the route.

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Mateo S.online

Hi Mateo, any problems with water or flooding in this area?16:26

Some streets yes, some no. Send me the address and I’ll tell you honestly.16:35

Thanks a lot!16:36

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Are promoted-housing (vivienda promovida) flats in Cordón still a good buy?

For a long-term rental, yes, if the numbers hold. Under Law 18.795, an investor in a promoted unit pays no IRPF or IRNR on the rent for 10 years, no Impuesto al Patrimonio for 10 years, and no ITP on the purchase. On a Cordón flat at 6.2% gross, removing the 10.5% rental tax lifts our net estimate from about 4.1% to 4.8%.

The price is fair, not cheap. Promoted units sold in Montevideo at an average USD 2,411 per built m² (USD 3,115 per habitable m²) over the 12 months to April 2026 (ANV), close to Cordón's USD 3,228 asking median for resale flats (INGAR).

The rules are moving. A decree published on 25 June 2026 (130/026) reworked the "Entre Todos" line of the scheme: projects in areas without full services are capped at 100 homes and the housing ministry sets maximum sale prices. The core tax breaks for investors weren't touched by it.

What to check before you sign:

• The project's resolution: the exemptions are granted project by project; ask the developer for the ANV declaration.
• Years left: on a resale promoted flat, ask how many of the 10 exempt years remain.
• Competition: Cordón has the most promoted units in the city, mostly studios and one-bedrooms, so price your rent at the UYU 27,000 median, not above.
• Gastos comunes: new buildings with amenities charge more each month, and you pay them when the flat is empty.

Which areas in Montevideo should a property investor avoid?

Which neighborhoods in Montevideo with lots of problems should I avoid and why?

Most individual foreign investors should be careful with Manga, Casabó, Las Acacias, Colón Sureste and Nuevo París. The issue isn't the price, it's the work: finding tenants, collecting rent and selling later.

Specific issues:

• Manga: far from the center, few shops and services, longer gaps between tenants.
• Casabó: uneven building quality, few buses and few property managers working there.
• Las Acacias: next to industrial areas, more tenant turnover.
• Colón Sureste: improving, but still short of the shops that keep tenants for years.
• Nuevo París: a security reputation that shrinks the pool of tenants and buyers.

Nationally, reported robberies fell 2.1% between the third quarters of 2025 and 2026 (Ministerio del Interior). There's no reliable crime rate by barrio, so visit at night, talk to the building's administrator and ask a local escribano how fast similar units resold.

Which areas in Montevideo have stagnant or declining property prices?

In real terms, most of the city is flat. Montevideo promoted-housing prices rose 5.1% in dollars over the 12 months to April 2026, but fell 2.2% in inflation-indexed units (ANV). Asking rents fell 3.9% over the year to August 2026.

The weakest spots are the top of the market, the far west and old central buildings:

• Carrasco Sur and the Golf area of Punta Carretas: already the city's highest prices (USD 4,184 to 4,370 per m² at barrio level), with a small pool of buyers at that level.
• Pajas Blancas and parts of Cerro: far from everything, little commerce, weak demand.
• Older central buildings: no elevator or garage, rising upkeep, and new promoted units next door.

We found no official price series by barrio, so this is our reading of asking prices and broker reports, not a measured decline.

Which areas in Montevideo have the best long-term appreciation potential?

Which areas in Montevideo have appreciated the most recently?

The only official long series covers promoted housing: in Montevideo, it went from USD 1,955 per built m² in the first half of 2021 to USD 2,477 in January to April 2026, up 26.7% in five years, or about 4.8% a year in dollars (ANV).

There's no official series by barrio. From asking prices and what brokers report, the areas that held value best are the coast (Pocitos, Punta Carretas, Malvín) and the Cordón promoted-housing corridor.

What they share: little land left near the Rambla, steady tenant demand, and new buildings that keep improving the street.

Which neighborhoods in Montevideo are expected to see price growth in coming years?

Our best bets are Cordón, Tres Cruces, La Blanqueada, Ciudad Vieja and the Buceo waterfront. Nobody publishes a credible forecast by barrio, so we don't give one.

What could drive them:

• Cordón and Tres Cruces: more promoted-housing buildings and the 18 de Julio bus-rapid-transit works.
• La Blanqueada: new promoted projects at lower prices than Cordón, close to 8 de Octubre.
• Ciudad Vieja: the lowest price per m² in the data (USD 2,157), with room to catch up if renovation continues.
• Buceo waterfront: USD 3,657 per m², below Pocitos next door (USD 3,956).

For the city as a whole, our estimate is +3% to +5% a year in dollars over the next few years, close to inflation (4.68% over 12 months to September 2026), not a boom.

Marta V.Property manager

Hi Marta, if I buy to rent out, which area rents fastest?8:55

Not always the one people expect. I’ll tell you where my units fill fastest.9:04

Perfect!9:05

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What do locals and expats really think about Montevideo's barrios?

Which areas in Montevideo do local residents consider the most desirable to live?

Locals put Carrasco, Punta Carretas, Pocitos and Punta Gorda at the top.

Why:

• Carrasco: low density, the best private schools, embassies, a suburban feel close to the city.
• Punta Carretas: the mall, the golf course, the Rambla, a prestige address.
• Pocitos: the beach, restaurants, the busiest stretch of the Rambla.
• Punta Gorda: quiet coastal streets, established families, green spaces.

The people living there are mostly established professionals, business owners, diplomats and retirees. The low yields in these barrios (5.1% to 5.5% gross) tell you the same thing: people pay up to live there.

Locals and foreign buyers mostly agree. Locals care more about schools and family life; foreigners about walkability, security and resale.

Which neighborhoods in Montevideo have the best reputation among expat communities?

Expats settle mostly in Pocitos, Punta Carretas, Carrasco and Buceo.

Why:

• Pocitos: walkable, the most furnished rentals, easy to get by in English.
• Punta Carretas: feels safe, close to private hospitals and embassies.
• Carrasco: bilingual schools, houses with gardens, ten minutes from the airport.
• Buceo: newer apartments, the marina and the World Trade Center offices, a younger crowd.

Pocitos and Buceo draw remote workers and entrepreneurs, Punta Carretas retirees and people posted by their company, Carrasco families with school-age children. Argentines, Brazilians, Americans and Europeans are the usual mix; there's no official count of foreign buyers in Montevideo.

Which areas in Montevideo do locals say are overhyped by foreign buyers?

Locals often point to the Golf area of Punta Carretas, the busy commercial streets of Pocitos and the new towers of Puerto del Buceo.

Why locals think they're overpriced:

• Golf area (Punta Carretas): you pay for the address; the next blocks give the same life for less.
• Commercial Pocitos: noise and traffic on the main avenues; quieter streets nearby are better value.
• Puerto del Buceo new builds: premium prices for new finishes and amenities, high gastos comunes, less of a neighborhood feel.

Foreign buyers pay for the sense of safety, the amenities and not needing much Spanish. Locals look at the price per m² against the barrio median (USD 4,184 in Punta Carretas, USD 3,956 in Pocitos) and often conclude the premium isn't worth it.

Which areas in Montevideo are considered boring or undesirable by residents?

Residents often describe outer Carrasco as too quiet, and see Nuevo París and Paso Molino as unappealing places to live. Low prices there reflect what's on offer, not a hidden deal.

What residents say:

• Outer Carrasco: few shops, little nightlife, you need a car for everything; dull for younger residents.
• Nuevo París: industrial feel, few green spaces, a security reputation.
• Paso Molino: traffic, old buildings, no beach.