Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Everything you need to know before buying real estate is included in our Uruguay Property Pack
Wondering whether January 2026 is the right time to buy property in Uruguay, or if you should hold off and wait for better conditions?
In this article, we break down the latest housing prices in Uruguay and the key signals that tell you whether the market is overheated, cooling down, or sitting in a sweet spot for buyers.
We constantly update this blog post with fresh data, so you always have the most current picture of the Uruguay real estate market.
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 Uruguay.
So, is now a good time?
Rather yes, January 2026 looks like a reasonable time to buy property in Uruguay if you pick the right neighborhood and do your homework on rental yields.
The strongest signal is that price growth and rent growth are both moderate (around 5% year over year), which means the market is not overheating and you are not buying at a peak.
Another strong signal is that inflation in Uruguay is contained at around 4%, and the central bank has already cut interest rates to 7.5%, which improves financing conditions and reduces the risk of a hard landing.
Other supporting signals include low vacancy in Montevideo (around 10% versus 20% nationally), stable household incomes, and a price-to-income ratio that looks stretched but not extreme for the region.
The best strategies right now are buying apartments in liquid Montevideo neighborhoods like Pocitos, Cordón, or Punta Carretas for rental income, or targeting higher-yield peripheral areas if you can handle more tenant risk.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Uruguay, or should I wait as of 2026?
Do real estate prices look too high in Uruguay as of 2026?
As of early 2026, property prices in Uruguay appear roughly in line with fundamentals, with median transaction prices up about 5% year over year in USD and rents rising at a similar pace, which does not scream "overpriced" when inflation is sitting around 4%.
One clear on-the-ground signal is that gross rental yields in prime Montevideo neighborhoods like Pocitos and Punta Carretas hover around 5% to 6%, which suggests buyers are not paying wildly inflated prices relative to the rent those properties generate.
Another useful signal is that Uruguay's price-to-income ratio sits roughly in the 3x to 6x range for typical homes, and while that is not cheap, it is not at the extreme levels you see in markets that are clearly in bubble territory.
You can also read our latest update regarding the housing prices in Uruguay.
Does a property price drop look likely in Uruguay as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Uruguay over the next 12 months looks low, mainly because there is no credit crunch brewing and the central bank is easing rather than tightening.
The plausible range for Uruguay property prices over the next year is somewhere between flat (0%) and a modest gain of around 5% to 7% in USD terms, with only weaker submarkets facing small declines.
The single most important factor that could increase the odds of a price drop in Uruguay would be a sharp tightening of credit conditions, such as banks pulling back on mortgage lending or a sudden spike in interest rates.
However, that scenario looks unlikely right now because the BCU has already cut its policy rate to 7.5% and inflation is under control, so there is no obvious trigger for an abrupt credit squeeze in the near term.
Finally, please note that we cover the price trends for next year in our pack about the property market in Uruguay.
Could property prices jump again in Uruguay as of 2026?
As of early 2026, the likelihood of a renewed price surge in Uruguay is medium, meaning prices could rise faster than expected but a dramatic spike is not the base case.
The plausible upside range for Uruguay property prices over the next 12 months is around 5% to 10% in the hottest submarkets like coastal Montevideo and Punta del Este, while the national average would likely stay closer to the lower end.
The single biggest demand-side trigger that could drive prices to jump again in Uruguay is continued interest rate cuts by the BCU, which would make mortgages more affordable and bring more buyers into the market.
Please also note that we regularly publish and update real estate price forecasts for Uruguay here.
Are we in a buyer or a seller market in Uruguay as of 2026?
As of early 2026, Uruguay's property market is not one single market but rather a patchwork, with prime coastal neighborhoods in Montevideo leaning slightly toward sellers while peripheral and interior areas give buyers more negotiating power.
There is no widely published months-of-inventory figure for Uruguay, but gross rental yields serve as a useful proxy: neighborhoods like Punta Gorda and Punta Carretas show yields around 5%, which typically signals strong demand and less room for buyers to negotiate.
On the flip side, neighborhoods like Manga, Casabó, and Colón Sureste show yields above 10%, which often means properties sit longer and sellers are more willing to cut prices to attract buyers.
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.
Are homes overpriced, or fairly priced in Uruguay as of 2026?
Are homes overpriced versus rents or versus incomes in Uruguay as of 2026?
As of early 2026, homes in Uruguay look fairly priced when compared to rents, but they appear somewhat stretched when compared to local incomes, especially in prime Montevideo neighborhoods where prices are highest.
The price-to-rent ratio in Uruguay varies widely by neighborhood, but a citywide average gross yield of around 6% translates to a price-to-rent multiple of roughly 17 years, which is reasonable compared to many Latin American capitals where multiples often exceed 20.
The price-to-income multiple in Uruguay sits roughly between 3x and 6x annual household income for typical properties, which is not cheap but also not at the alarming 10x+ levels seen in truly overheated markets.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Uruguay.
Are home prices above the long-term average in Uruguay as of 2026?
As of early 2026, home prices in Uruguay appear to be close to their long-term trend rather than dramatically above it, with the latest 12-month increase of about 5% in USD looking moderate rather than frothy.
That 5% year-over-year price increase in Uruguay is actually slower than the pre-pandemic years when double-digit growth was more common in hot submarkets, which suggests the market has normalized rather than overheated.
In inflation-adjusted terms, Uruguay property prices have held up well because local inflation has stayed contained around 4%, meaning real price growth is positive but not extreme compared to the prior cycle peak.
Get fresh and reliable information about the market in Uruguay
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What local changes could move prices in Uruguay as of 2026?
Are big infrastructure projects coming to Uruguay as of 2026?
As of early 2026, there is no single mega-infrastructure project in Uruguay that is expected to dramatically shift property prices nationwide, though smaller urban improvements in Montevideo and the Costa de Oro corridor can have localized effects.
The lack of a transformative infrastructure announcement is somewhat of a missed opportunity for Uruguay, since projects like new metro lines or major airport expansions have historically boosted property values in other Latin American markets.
For the latest updates on the local projects, you can read our property market analysis about Uruguay here.
Are zoning or building rules changing in Uruguay as of 2026?
One of the most important zoning changes being discussed in Uruguay is the Malvín urban planning update in Montevideo, which adjusts building heights and density rules along specific streets in that coastal neighborhood.
As of early 2026, the net effect of such zoning changes in Uruguay is likely to be mixed: areas where density is allowed to increase could see more supply (which cools prices), while areas that remain restricted could see prices stay firmer due to scarcity.
The type of area most affected by these rule changes in Uruguay tends to be mid-ring coastal neighborhoods in Montevideo like Malvín, Buceo, and Pocitos, where demand is strong but buildable land is limited.
Are foreign-buyer or mortgage rules changing in Uruguay as of 2026?
As of early 2026, Uruguay remains one of the most open countries in Latin America for foreign property buyers, with no major restrictions or rule changes on the horizon that would significantly affect prices.
There is no imminent foreign-buyer tax, ban, or quota being seriously considered in Uruguay, which means international buyers can continue to purchase property on the same terms as locals.
On the mortgage side, the most relevant change is that the BCU has cut its policy rate to 7.5%, which should gradually translate into slightly better mortgage terms, though Uruguay's mortgage market remains relatively small compared to more developed economies.
You can also read our latest update about mortgage and interest rates in Uruguay.
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.
Will it be easy to find tenants in Uruguay as of 2026?
Is the renter pool growing faster than new supply in Uruguay as of 2026?
As of early 2026, renter demand in Uruguay appears to be keeping pace with supply in Montevideo, where vacancy is low at around 10%, while the interior of the country has more slack with national vacancy sitting near 20%.
The best signal for renter demand in Uruguay is the 5.3% year-over-year increase in rents reported by INE, which suggests tenants are competing for available units and landlords have some pricing power.
On the supply side, new construction in Uruguay remains concentrated in Montevideo and parts of Maldonado, with building permits and project launches not showing signs of a dramatic oversupply wave that would flood the rental market.
Are days-on-market for rentals falling in Uruguay as of 2026?
As of early 2026, precise days-on-market data for rentals in Uruguay is not widely published, but the combination of rising rents and low Montevideo vacancy suggests that well-located units are finding tenants relatively quickly.
The difference in rental speed between Uruguay's best areas and weaker areas is significant: apartments in Pocitos, Cordón, and Centro tend to rent fast, while properties in high-yield peripheral neighborhoods like Manga or Casabó may sit longer due to a thinner tenant pool.
One common reason days-on-market falls in Uruguay is the structural undersupply of quality apartments in walkable, central Montevideo locations, which keeps demand consistently ahead of available listings.
Are vacancies dropping in the best areas of Uruguay as of 2026?
As of early 2026, vacancy in Uruguay's best rental areas like Carrasco, Punta Gorda, Pocitos, and Punta Carretas is already structurally low, so there is not much room for it to drop further, but it remains tighter than the national average.
Montevideo's overall vacancy sits around 10% according to the latest census data, while the country as a whole has nearly 20% vacant dwellings, which means prime Montevideo neighborhoods are significantly tighter than the headline number suggests.
One practical sign that Uruguay's best rental areas are tightening is that gross yields in those neighborhoods have compressed to around 5%, which only happens when strong tenant demand pushes prices up relative to rents.
By the way, we've written a blog article detailing what are the current rent levels in Uruguay.
Buying real estate in Uruguay can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Uruguay as of 2026?
Is for-sale inventory shrinking in Uruguay as of 2026?
As of early 2026, it is hard to give a precise year-over-year inventory change for Uruguay because there is no single official count of for-sale listings, but the combination of moderate price growth and low Montevideo vacancy suggests supply is not flooding the market.
Months-of-supply data is not standardized in Uruguay the way it is in the US, but the fact that prices are rising around 5% annually without a surge in distressed sales suggests the market is closer to balanced than oversupplied.
One likely reason inventory stays tight in Uruguay's most desirable areas is that owners in prime Montevideo neighborhoods like Pocitos and Carrasco have little incentive to sell when rental yields remain attractive and financing conditions are improving.
Are homes selling faster in Uruguay as of 2026?
As of early 2026, there is no widely published median days-on-market figure for Uruguay, but the moderate 5% price growth suggests the market is active without being frantic, which typically means well-priced homes sell within a reasonable timeframe.
Year-over-year, the direction of selling speed in Uruguay appears stable rather than dramatically faster or slower, with most of the variation coming from individual property pricing and location rather than a market-wide shift.
Are new listings slowing down in Uruguay as of 2026?
As of early 2026, we do not have high-confidence data on whether new for-sale listings in Uruguay are specifically slowing down, but the pipeline of new construction projects remains concentrated in Montevideo and Maldonado rather than spreading nationwide.
Uruguay's seasonal pattern for new listings typically sees more activity in the spring and fall months, with summer (December to February) being quieter due to holidays and beach season, so current listing levels may appear low for seasonal reasons.
Is new construction failing to keep up in Uruguay as of 2026?
As of early 2026, new construction in Uruguay appears to be keeping pace with demand at a national level given the high vacancy rate, but in the specific neighborhoods where people most want to live, supply remains tight.
Construction costs in Uruguay continue to rise slowly, with the official ICCV index showing modest monthly increases, which means developers cannot easily cut prices and may hold back on new projects if margins get squeezed.
The biggest bottleneck limiting new construction in Uruguay's most desirable areas is the scarcity of buildable land in prime coastal Montevideo, combined with zoning rules that restrict density in some neighborhoods.
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.
Will it be easy to sell later in Uruguay as of 2026?
Is resale liquidity strong enough in Uruguay as of 2026?
As of early 2026, resale liquidity in Uruguay is strongest in Montevideo's most established neighborhoods like Pocitos, Cordón, Centro, Punta Carretas, and Carrasco, where there is a deep pool of both local and international buyers.
While Uruguay does not publish official median days-on-market data, properties in liquid neighborhoods typically sell within a few months when priced correctly, which is comparable to a healthy liquidity benchmark for a mid-sized Latin American market.
The property characteristic that most improves resale liquidity in Uruguay is location in a walkable, central Montevideo neighborhood with good transport links, since these areas attract both end-users and investors looking for rental income.
Is selling time getting longer in Uruguay as of 2026?
As of early 2026, selling time in Uruguay appears stable rather than lengthening, with the moderate 5% price growth suggesting that correctly priced properties continue to find buyers without excessive delays.
While we cannot cite a precise median days-on-market figure, the realistic range in Uruguay spans from a few weeks for well-priced apartments in Pocitos to several months for overpriced or unusual properties in less liquid areas.
One clear reason selling time can lengthen in Uruguay is overpricing relative to comparable listings, since buyers in this market are price-sensitive and will wait rather than pay a premium when alternatives exist.
Is it realistic to exit with profit in Uruguay as of 2026?
As of early 2026, the likelihood of exiting with a profit in Uruguay is medium to high if you hold for at least 5 years, buy in a liquid neighborhood, and factor in rental income during your holding period.
The minimum holding period that most often makes exiting with profit realistic in Uruguay is around 5 to 7 years, which gives you enough time to absorb transaction costs and benefit from both rental income and modest price appreciation.
Total round-trip costs in Uruguay (buying plus selling) typically run around 8% to 12% of the property value, which translates to roughly USD 8,000 to USD 15,000 on a USD 100,000 property, or about EUR 7,500 to EUR 14,000.
The factor that most increases profit odds in Uruguay is buying in a neighborhood with strong rental demand like Pocitos, Cordón, or Punta Carretas, since the rental income helps offset holding costs and the deep buyer pool supports your exit price.
Get the full checklist for your due diligence in Uruguay
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Uruguay, 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 |
|---|---|---|
| INE Market Indicators (IAI) | Uruguay's official statistics agency publishing standardized market data. | We used it as the backbone dataset for price and rental activity signals. We cross-checked its direction against inflation and income stats to judge whether prices look stretched. |
| INE Rental Index (Oct 2025) | Official INE release summarizing the latest rental index movements. | We used the reported 12-month rental change to see whether rents keep pace with prices. We treat rents as the cash-flow anchor for valuation signals. |
| INE Sales Indicator (Sep 2025) | Official INE release describing transaction price dynamics in USD. | We used the 12-month change in median transaction prices as the cleanest national price pulse. We compared it to inflation and income growth to gauge overheating risk. |
| INE Household Income (ECH) | Official household income survey data used across government. | We used household income levels to estimate price-to-income pressure. We triangulated this with rent yields to see if valuations are supported by fundamentals. |
| INE Census 2023 Vacancy Data | Official census output with very high coverage and hard to dispute. | We used vacancy by department as a structural supply cushion signal. We combined it with local demand data to flag where oversupply risk is higher. |
| BCU Inflation Dashboard | Central bank's official inflation data and expectations commentary. | We used inflation to convert nominal price changes into real price changes. We also used it to judge whether interest rates are likely to stay restrictive or ease. |
| BCU Policy Rate Announcements | Primary publication channel for Uruguay's monetary policy decisions. | We used the latest policy rate level to frame mortgage and financing conditions. We then translated that into buyer affordability tailwinds or headwinds. |
| BCU Interest Rate Series | Official source for bank interest rate statistical series. | We used it to ground the financing discussion in real data rather than broker guesses. We combined it with inflation to discuss real borrowing costs and price pressure. |
| BCU Financial System Report | Regulator-level publication on credit, risks, and banking conditions. | We used it to check whether mortgage credit is expanding fast (bubble risk) or staying controlled. We also used it to understand stress risks that could force banks to tighten. |
| BIS Residential Property Prices | Top-tier international statistics publisher with standardized cross-country data. | We used BIS as an external sanity check on Uruguay's housing price direction versus regional peers. We used it to avoid relying on a single local dataset. |
| INE Construction Cost Index (ICCV) | Official construction cost index for housing in Uruguay. | We used ICCV to judge whether new supply is getting cheaper or more expensive to build. We then inferred whether developers can cut prices or will hold firm. |
| InfoCasas Rental Yield Report | Major property portal using a large listing sample and explicit yield math. | We used it to quantify neighborhood-level yields with real neighborhood names. We then used yield spreads to explain why Uruguay is not one single market. |
| InfoCasas Projects Report 2025 | Large-sample portal report focused on new-build supply and demand. | We used it to describe where new supply is concentrated and how demand behaved through 2025. We combined it with permits and cost inflation to assess pipeline versus demand. |
| El País Inmuebles Data | National media and marketplace collaboration with defined market monitor methodology. | We used it as a market microstructure complement for inventory and time-on-market signals. We triangulated it with INE's IAI so we are not relying on one private dashboard. |
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.