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
Are you considering investing in Montevideo's real estate market? Curious about which neighborhoods are set to boom in 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights, providing you with a clear roadmap to the city's most promising areas. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Uruguay Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Malvín is popular for its family-friendly vibe and lower property prices offering great investment opportunities
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 resurging with affordable properties and growing developer interest in 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
Everything you need to know is included in our Property Pack for Montevideo
3) Cordón's central location and affordable housing make it a top choice for 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 becoming a transport hub with new projects boosting its appeal for residential and commercial investments
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) Pocitos is a booming real estate market with high rental demand from young professionals and students driving yields
Pocitos is a hot spot for real estate in Montevideo, thanks to its high rental demand from young professionals and students.
The neighborhood's charm lies in its vibrant atmosphere and proximity to the Rambla, making it a magnet for young people. With universities nearby, students flock here, ensuring a steady rental demand as they look for convenient housing options.
Adding to its allure, Pocitos boasts trendy businesses like gourmet coffee shops and craft beer bars, which are a hit with young professionals. This lively scene is a big draw for those seeking a dynamic living environment.
Tenant preference surveys consistently highlight Pocitos as a top choice, showcasing its desirability for a convenient and lively lifestyle. The area's popularity is further boosted by its continuous population growth, driven by immigration and an influx of young people.
Short-term rentals are particularly popular here, contributing to the impressive rental yields. Rental yields can reach as high as 34.5%, making it an attractive investment for property buyers.
With its trendy vibe and strategic location, Pocitos remains a favorite among young professionals and students, ensuring strong rental yields and a thriving real estate market.
Source: Overseas Dream Home
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6) Carrasco attracts attention for luxury properties offering significant appreciation potential 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
7) Parque Rodó is highly sought for its vibrant culture and proximity to schools driving 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.
8) Punta Gorda attracts buyers with scenic views and a quiet atmosphere driving steady property appreciation
Punta Gorda is drawing in homebuyers with its stunning scenic views and peaceful residential vibe.
Over the past few years, property values in Punta Gorda have steadily increased, reflecting its growing allure. This neighborhood in Montevideo is becoming a hot spot due to its high demand and limited supply, making it ideal for those seeking a serene yet accessible place to live. Its proximity to main roads and new developments is particularly appealing to professionals who want more space.
One of Punta Gorda's standout features is its breathtaking ocean views. Homes overlooking the Rio de la Plata, especially in areas like the "Curve of the Dreams," are highly coveted. These properties offer a unique chance to enjoy Montevideo's marine sunsets, enhancing their desirability.
In Punta Gorda, the combination of natural beauty and a quieter residential atmosphere is leading to steady property appreciation. The neighborhood's charm is not just in its views but also in its community feel, which is attracting a diverse range of buyers.
For those considering a move, Punta Gorda offers a blend of tranquility and convenience, making it a prime choice for homebuyers. The area's appeal is further boosted by its accessibility to urban amenities while maintaining a peaceful environment.
As more people discover Punta Gorda's unique offerings, the neighborhood continues to thrive, with property values reflecting its increasing popularity. This trend is expected to continue, making it a wise investment for those looking to buy property in Montevideo.
Sources: Real Estate in Uruguay, Real Estate in Uruguay
Everything you need to know is included in our Pack for Montevideo
9) Punta Carretas is popular for its shopping centers and coastline making it a desirable area with rising property values
Punta Carretas is a hotspot thanks to its prime location near shopping centers and the coastline.
At the heart of this area is the Punta Carretas Shopping Center, where upscale shops and cafes create a vibrant atmosphere for both locals and tourists. It's a place where you can enjoy a leisurely afternoon, whether you're shopping or just people-watching.
The scenic Rambla, running along the coast, offers stunning views and a lively atmosphere. This makes Punta Carretas not just beautiful but also practical, as it's easy to get around on foot or by public transport, making it a breeze to explore the area.
Property values here have been on the rise, and for good reason. The consistent growth in property values is fueled by the area's appeal, with its amenities and breathtaking views being a big draw for buyers.
Demand for properties in Punta Carretas is strong, which means steady appreciation in property values. People are eager to invest here, knowing the value is likely to keep climbing.
Living in Punta Carretas means enjoying the best of both worlds: proximity to urban conveniences and natural beauty. It's no wonder this area is so sought after.
Sources: Overseas Property Alert, Wikivoyage, WTCF Media
10) Ciudad Vieja is a trendy spot for investors with cultural significance and urban renewal 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
11) Villa Biarritz is a top choice for its green spaces and markets boosting quality of life and real estate.
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
Related analyses:
- Overview of the current state of the real estate market in Montevideo