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
If you're looking to buy property in Montevideo in 2026, knowing which neighborhoods offer the best value, yields, and growth potential can save you from costly mistakes.
This guide breaks down Montevideo's real estate market neighborhood by neighborhood, using official government data and verified market reports so you can make decisions based on facts, not guesswork.
We constantly update this blog post to reflect the latest available data and market shifts.
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.
What's the Current Real Estate Market Situation by Area in Montevideo?
Which areas in Montevideo have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Montevideo are Carrasco Sur (around UYU 160,000 per sqm), Zona Golf in Punta Carretas (around UYU 165,000 per sqm), and Puerto del Buceo (around UYU 145,000 per sqm).
In these premium Montevideo neighborhoods, expect to pay between UYU 130,000 and UYU 170,000 per square meter for well-located apartments, with top-floor units and waterfront views pushing even higher.
Each of these areas commands high prices for specific reasons that go beyond just location:
- Carrasco Sur: largest properties with private gardens, top international schools within walking distance, and the lowest crime rate in Montevideo.
- Zona Golf (Punta Carretas): direct access to the golf club, unobstructed ocean views, and the highest concentration of diplomatic residences.
- Puerto del Buceo: modern marina lifestyle, newest building stock in the coastal strip, and strong appeal to Argentine and Brazilian buyers.
Which areas in Montevideo have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Montevideo include Manga, Casabo, Las Acacias, and Nuevo Paris, where prices typically range between UYU 18,000 and UYU 25,000 per square meter.
These neighborhoods offer entry points at roughly one-tenth the price of premium coastal areas, making them attractive for budget-conscious buyers or investors seeking higher gross yields.
However, buyers should expect trade-offs: Manga and Casabo are located far from major employment centers with limited public transport frequency, Las Acacias has higher vacancy rates due to weaker tenant demand, and Nuevo Paris requires more active property management due to higher tenant turnover.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Montevideo Offer the Best Rental Yields?
Which neighborhoods in Montevideo have the highest gross rental yields in 2026?
As of early 2026, the highest gross rental yields in Montevideo are found in Manga (around 13%), Casabo (around 12%), Las Acacias (around 11.5%), and Colon Sureste (around 10.5%).
Across Montevideo as a whole, gross rental yields typically range from 5% to 7% in central and semi-central areas, while premium coastal neighborhoods like Punta Carretas and Carrasco deliver lower yields of 4.5% to 5.5% due to their higher purchase prices.
The reasons these high-yield neighborhoods outperform vary significantly:
- Manga: extremely low purchase prices (under UYU 20,000/sqm) combined with steady rental demand from local workers.
- Casabo: affordable housing stock attracts families priced out of central areas, keeping occupancy relatively stable.
- Las Acacias: proximity to industrial zones creates consistent demand from blue-collar tenants.
- Colon Sureste: improving bus connections have boosted rental appeal without yet pushing up property prices.
Finally, please note that we cover the rental yields in Montevideo here.
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Which Areas in Montevideo Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Montevideo perform best on Airbnb in 2026?
As of early 2026, the best-performing Airbnb neighborhoods in Montevideo are Ciudad Vieja (highest tourist foot traffic), Pocitos (around 65% occupancy with nightly rates of UYU 2,300), Centro (strong business traveler demand), and Punta Carretas (premium rates averaging UYU 2,800 per night).
Top-performing short-term rental properties in these Montevideo neighborhoods typically generate between UYU 120,000 and UYU 200,000 in monthly revenue during peak season (December to March), though off-season months see revenues drop by 30% to 40%.
The factors driving short-term rental success differ by area:
- Ciudad Vieja: walkable historic district with Mercado del Puerto, museums, and nightlife concentrated in a small area.
- Pocitos: beach access, modern apartments, and safe streets attract families and longer-stay visitors.
- Centro: proximity to business districts, theaters, and transport hubs draws weekday corporate travelers.
- Punta Carretas: upscale shopping, waterfront rambla, and quiet streets appeal to higher-budget tourists.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Montevideo.
Which tourist areas in Montevideo are becoming oversaturated with short-term rentals?
The three areas in Montevideo showing signs of short-term rental oversaturation are Ciudad Vieja (particularly blocks away from main attractions), Centro (especially small studios competing on price), and parts of Pocitos near the main commercial strip.
In Ciudad Vieja alone, there are now over 400 active short-term rental listings within a roughly 1 square kilometer area, creating significant competition for guest bookings during non-peak months.
The clearest sign of oversaturation in these Montevideo neighborhoods is weakening review velocity: properties that used to receive 3 to 4 reviews per month now see only 1 to 2, indicating lower booking frequency despite similar pricing and amenities.
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 Areas in Montevideo Are Best for Long-Term Rentals?
Which neighborhoods in Montevideo have the strongest demand for long-term tenants?
The neighborhoods with the strongest long-term tenant demand in Montevideo are Cordon (university area), Tres Cruces (transport hub), Centro (services and transit), and Pocitos (coastal lifestyle).
In these high-demand Montevideo neighborhoods, vacancy rates typically hover between 3% and 5%, with well-priced properties leasing within 20 to 35 days of listing.
The tenant profiles driving demand vary by neighborhood:
- Cordon: university students and young professionals attending Universidad de la Republica and nearby institutions.
- Tres Cruces: workers needing easy access to the main bus terminal and commuters traveling to other departments.
- Centro: office workers, government employees, and service sector staff seeking walkable commutes.
- Pocitos: young professionals, expat families, and remote workers prioritizing beach access and cafes.
The key characteristic making these neighborhoods attractive to long-term tenants is their combination of strong public transport connections (especially along the 8 de Octubre and Avenida Italia corridors) with walkable access to daily necessities like supermarkets, pharmacies, and healthcare.
Finally, please note that we provide a very granular rental analysis in our property pack about Montevideo.
What are the average long-term monthly rents by neighborhood in Montevideo in 2026?
As of early 2026, average long-term monthly rents in Montevideo range from UYU 18,000 in peripheral neighborhoods like Manga to UYU 55,000 in premium areas like Carrasco and Punta Carretas, with the citywide average sitting around UYU 21,500 according to official contract data.
In the most affordable Montevideo neighborhoods (Manga, Casabo, Nuevo Paris), entry-level one-bedroom apartments typically rent for UYU 12,000 to UYU 18,000 per month.
In mid-range neighborhoods (Cordon, Centro, Aguada, La Blanqueada), standard two-bedroom apartments typically rent for UYU 22,000 to UYU 35,000 per month.
In premium coastal neighborhoods (Pocitos, Punta Carretas, Carrasco), two-bedroom apartments with modern amenities typically rent for UYU 40,000 to UYU 55,000 per month, with waterfront views pushing rents even higher.
You may want to check our latest analysis about the rents in Montevideo here.
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Which Are the Up-and-Coming Areas to Invest in Montevideo?
Which neighborhoods in Montevideo are gentrifying and attracting new investors in 2026?
As of early 2026, the top gentrifying neighborhoods in Montevideo attracting new investors are Ciudad Vieja (historic center revival), Aguada (central location with improving infrastructure), Goes/Villa Munoz (affordable entry with transit access), and La Comercial (spillover from more expensive central areas).
These gentrifying Montevideo neighborhoods have experienced annual price appreciation of 5% to 8% over the past two years, outpacing the citywide average of 3% to 4%.
Which areas in Montevideo have major infrastructure projects planned that will boost prices?
The Montevideo areas best positioned to benefit from infrastructure investment are neighborhoods along the Avenida Italia corridor (Buceo, Malvin, Punta Gorda), the 8 de Octubre corridor (Tres Cruces, La Blanqueada, Union), and the Agraciada/Garzon corridor (Paso Molino, Prado).
These corridors are receiving bus priority lanes, improved pedestrian crossings, and upgraded public spaces as part of Montevideo's integrated transport system development, with several phases already completed and others underway through 2027.
Historically, Montevideo neighborhoods that have received major corridor upgrades have seen price increases of 8% to 12% within two to three years of project completion, particularly for properties within 400 meters of improved stops.
You'll find our latest property market analysis about Montevideo here.
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 in Montevideo Should I Avoid as a Property Investor?
Which neighborhoods in Montevideo with lots of problems I should avoid and why?
The Montevideo neighborhoods that most individual foreign investors should approach with caution are Manga, Casabo, Las Acacias, Colon Sureste, and Nuevo Paris, primarily due to high management overhead and limited resale liquidity.
Each of these areas has specific challenges:
- Manga: highest gross yields (13%) but also highest vacancy risk and extended time-to-rent periods.
- Casabo: limited public transport makes tenant recruitment difficult outside immediate local population.
- Las Acacias: industrial adjacency creates inconsistent tenant quality and higher turnover rates.
- Colon Sureste: improving but still lacks the commercial amenities that attract stable long-term tenants.
- Nuevo Paris: ongoing security perception issues reduce the pool of willing tenants and buyers.
For these areas to become viable low-hassle investments, they would need significant improvements in public transport frequency, local commercial development, and a sustained track record of declining vacancy rates over several years.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Montevideo.
Which areas in Montevideo have stagnant or declining property prices as of 2026?
As of early 2026, the Montevideo areas showing the weakest price performance are ultra-premium coastal pockets (Zona Golf, Carrasco Sur) which have seen near-zero real appreciation due to affordability ceilings, and far-periphery zones (Pajas Blancas, parts of Cerro) where limited demand has kept prices flat for several years.
In the ultra-premium segment, prices have grown only 1% to 2% annually in real terms over the past three years, while the citywide average has managed 3% to 4% nominal growth.
The underlying causes of stagnation differ by area:
- Zona Golf / Carrasco Sur: already at peak pricing, limited buyer pool at these price points caps further appreciation.
- Pajas Blancas: geographic isolation and lack of commercial development prevent demand from deepening.
- Parts of Cerro: persistent security concerns and limited transport keep many buyers away despite low prices.
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Which Areas in Montevideo Have the Best Long-Term Appreciation Potential?
Which areas in Montevideo have historically appreciated the most recently?
Over the past five to ten years, the Montevideo areas that have appreciated most strongly are Pocitos (sustained coastal demand), Punta Carretas (limited new supply), Malvin (family-friendly beach access), and Cordon (university district gentrification).
The approximate appreciation these top-performing Montevideo neighborhoods have achieved:
- Pocitos: approximately 6% to 8% average annual appreciation in USD terms over the past decade.
- Punta Carretas: approximately 5% to 7% annual appreciation, with premium buildings outperforming.
- Malvin: approximately 4% to 6% annual appreciation, accelerating in recent years as coastal spillover.
- Cordon: approximately 5% to 7% annual appreciation driven by student housing demand and urban renewal.
The main driver of above-average appreciation in these areas has been the combination of limited developable land (especially in coastal strips), sustained demand from both local professionals and foreign buyers, and steady infrastructure improvements along major transit corridors.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Montevideo.
Which neighborhoods in Montevideo are expected to see price growth in coming years?
The Montevideo neighborhoods expected to see the strongest price growth over the coming years are Ciudad Vieja (urban renewal catalyst), Aguada (central location repricing), Goes/Villa Munoz (yield compression), and Buceo waterfront pockets (infrastructure completion).
Projected annual price growth for these high-potential Montevideo neighborhoods:
- Ciudad Vieja: 6% to 10% annually as municipal regeneration programs attract new residents and businesses.
- Aguada: 5% to 7% annually as central location value gets recognized by a broader buyer base.
- Goes/Villa Munoz: 5% to 8% annually as investors seeking yield drive prices up from current low base.
- Buceo waterfront: 4% to 6% annually as Avenida Italia corridor improvements complete.
The single most important catalyst expected to drive future price growth in these neighborhoods is the combination of municipal investment in public spaces and transport (especially the Ciudad Vieja Late program and corridor upgrades) with sustained foreign buyer interest in Uruguay's stable market.
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 Do Locals and Expats Really Think About Different Areas in Montevideo?
Which areas in Montevideo do local residents consider the most desirable to live?
The areas that Montevideo locals consistently consider most desirable to live are Carrasco (prestige and security), Punta Carretas (coastal lifestyle), Pocitos (urban beach culture), and Punta Gorda (quiet waterfront living).
Each area has specific qualities that drive local preference:
- Carrasco: lowest crime rates, best private schools, largest properties with gardens, and suburban tranquility.
- Punta Carretas: upscale shopping at Punta Carretas mall, direct rambla access, and strong community feel.
- Pocitos: vibrant restaurant scene, young professional population, and Uruguay's most active beach promenade.
- Punta Gorda: historic charm, quiet tree-lined streets, and proximity to both Carrasco amenities and city center.
These locally-preferred areas tend to attract upper-middle-class families, established professionals, and retirees seeking security and quality of life over maximum rental returns.
Local preferences in Montevideo largely align with what foreign investors target for capital preservation and resale liquidity, though locals often prioritize school quality and family-oriented amenities more heavily than foreign buyers focused on yield.
Which neighborhoods in Montevideo have the best reputation among expat communities?
The Montevideo neighborhoods with the strongest reputation among expat communities are Pocitos (most popular overall), Punta Carretas (upscale expat concentration), Carrasco (families with school-age children), and Buceo (younger expats and digital nomads).
The main reasons expats prefer these neighborhoods:
- Pocitos: walkable to everything, English-speaking services available, and large rental inventory for easy relocation.
- Punta Carretas: safer perception, proximity to international-standard healthcare, and established expat networks.
- Carrasco: access to bilingual schools, larger homes suitable for families, and proximity to Carrasco International Airport.
- Buceo: modern apartments with coworking amenities, marina lifestyle, and younger international community.
The expat profile varies by neighborhood: Pocitos and Buceo attract younger remote workers and entrepreneurs, Punta Carretas draws retirees and professionals on corporate assignments, and Carrasco appeals to families seeking long-term relocation with school-age children.
Which areas in Montevideo do locals say are overhyped by foreign buyers?
The three Montevideo areas that locals most commonly say are overhyped by foreign buyers are Punta Carretas (especially Zona Golf), parts of Pocitos near the main commercial strip, and newly developed sections of Puerto del Buceo.
The main reasons locals consider these areas overvalued:
- Zona Golf (Punta Carretas): prices reflect prestige more than practical value; similar quality of life available for 30% less in adjacent blocks.
- Commercial Pocitos: noise and traffic along main avenues reduce livability; quieter blocks offer better value for residents.
- Puerto del Buceo new builds: premium pricing for modern finishes, but lacking the established community feel that locals value.
Foreign buyers typically value these areas for their perceived safety, modern amenities, and ease of navigation without Spanish fluency, while locals prioritize neighborhood community, established services, and better price-to-quality ratios in adjacent but less-marketed blocks.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Montevideo.
Which areas in Montevideo are considered boring or undesirable by residents?
The Montevideo areas that residents most commonly describe as boring or undesirable are parts of Carrasco (too quiet for younger residents), far-periphery industrial zones like Nuevo Paris, and certain stretches of the western approach including Paso Molino.
The reasons residents find these areas less appealing:
- Outer Carrasco: sparse commercial activity, car-dependent lifestyle, and limited nightlife makes it feel isolated for younger residents.
- Nuevo Paris: industrial character, limited green space, and persistent safety perception issues reduce residential appeal.
- Paso Molino: traffic congestion, aging building stock, and limited waterfront access compared to coastal alternatives.
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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 |
|---|---|---|
| Instituto Nacional de Estadistica (INE) | Official national statistics based on real transaction records, not listings. | We used INE data to anchor citywide price trends and rental averages. We also relied on their IAI bulletins to verify market direction through late 2025. |
| InfoCasas | Major real estate portal with consistent methodology and large listing inventory. | We extracted neighborhood price tiers and gross yield rankings from their annual reports. We then adjusted 2024 figures using INE trend direction for early 2026 estimates. |
| Agencia Nacional de Vivienda (ANV) | Official housing agency reporting declared sales under Uruguay's promoted housing regime. | We used ANV data to understand new supply dynamics and identify areas with active development. We also referenced their price reports for transaction-based benchmarks. |
| Intendencia de Montevideo | City government source for transport corridors and urban renewal programs. | We mapped infrastructure investments to specific neighborhoods using their corridor documentation. We also referenced their Ciudad Vieja Late program for regeneration context. |
| AirDNA | Widely used short-term rental analytics provider with standardized metrics. | We used their Montevideo overview for citywide occupancy and ADR benchmarks. We then mapped likely top-performing neighborhoods using tourism flow logic. |
| Global Property Guide | International real estate data provider covering yields and price trends. | We referenced their Uruguay analysis for rental yield benchmarks and price history context. We used their data to validate our neighborhood-level estimates. |
| Direccion General Impositiva (DGI) | Official tax authority providing guidance on rental income taxation. | We referenced DGI's rental income guidelines to contextualize gross versus net yield discussions. We used this to remind readers that taxes affect actual returns. |
| Banco Central del Uruguay (BCU) | Central bank source for official exchange rates affecting USD/UYU calculations. | We used BCU exchange rate data to convert between currencies consistently. We also referenced their rates to explain currency risk in rental income. |
| Direccion Nacional de Catastro | Official cadastre portal for property identification and registration data. | We referenced their portal to explain how buyers can verify property records. We used this to frame legal certainty for foreign buyers. |
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