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Everything you need to know before buying real estate is included in our Uruguay Property Pack
Uruguay's real estate market offers diverse investment opportunities with apartment prices ranging from US$750 to US$4,260 per square meter depending on location. Property prices have grown steadily at 4-7% annually over the past five years, with prime coastal areas like Punta del Este commanding premium prices while rural farmland has reached record highs of US$3,967 per hectare.
The Uruguayan property market presents attractive opportunities for both investors and residents, with Montevideo offering urban lifestyle benefits and coastal areas providing luxury beachfront options. Transaction costs typically range from 7-9% of the purchase price, while property taxes remain relatively low at 0.15-0.30% of cadastral value annually.
If you want to go deeper, you can check our pack of documents related to the real estate market in Uruguay, based on reliable facts and data, not opinions or rumors.
Uruguay's real estate costs vary significantly by location, with Montevideo apartments averaging US$3,500/m² and Punta del Este reaching US$4,000-10,000/m² for luxury properties.
Rural farmland has hit record prices at US$3,967/ha nationally, while transaction costs total 7-9% of purchase price including notary fees and taxes.
| Property Type | Location | Average Price |
|---|---|---|
| Apartments | Montevideo Prime Areas | US$3,500-4,260/m² |
| Apartments | Punta del Este | US$4,000-10,000/m² |
| 1-Bedroom Apt | Montevideo Center | US$95,000-135,000 |
| 3-Bedroom House | Montevideo Suburbs | US$110,000-250,000 |
| Rural Land | Agricultural | US$3,967/ha average |
| Monthly Rent | Montevideo 1BR | US$400-700 |
| Closing Costs | All Areas | 7-9% of purchase price |
What's the average price per square meter for apartments in Montevideo compared to Punta del Este and Colonia?
Apartment prices in Uruguay vary dramatically by location, with Montevideo averaging US$3,500 per square meter in prime neighborhoods as of September 2025.
In Montevideo's most exclusive areas like Carrasco and Punta Carretas, apartment prices reach US$4,000-4,260 per square meter. However, more affordable neighborhoods start as low as US$750 per square meter, making the capital accessible to different budget ranges.
Punta del Este commands the highest prices in Uruguay's apartment market, averaging US$4,000 per square meter for standard units. Luxury beachfront apartments in this premier coastal destination can range from US$7,000 to US$10,000 per square meter, reflecting its status as South America's most exclusive beach resort.
Colonia offers a middle ground between urban Montevideo and resort-style Punta del Este, with apartment prices typically around US$3,500 per square meter. This historic UNESCO World Heritage city provides colonial charm while maintaining relative affordability compared to beachfront locations.
For perspective, Uruguay's nationwide average for newly built properties sits at approximately US$2,038 per square meter, highlighting how location significantly impacts pricing throughout the country.
How much does a one-bedroom apartment cost in city center versus outside areas?
One-bedroom apartments in Montevideo's city center typically cost between US$95,000 and US$135,000 for purchase, with price per square meter averaging around US$2,800.
City center apartments offer the advantage of proximity to business districts, cultural attractions, and public transportation. These properties often feature modern amenities and are popular among young professionals and investors seeking rental income potential.
Outside the city center, in more affordable neighborhoods like Las Acacias, one-bedroom apartments start from around US$70,000, with prices averaging US$750-875 per square meter. These areas provide better value for money while still offering good connectivity to central Montevideo.
For rental purposes, city center one-bedroom apartments command US$400-600 monthly for unfurnished units, reaching up to US$1,100 for fully furnished properties. Outside the center, similar apartments rent for US$300-500 monthly, offering attractive yields for investors.
The price difference between center and periphery reflects Uruguay's centralized urban development pattern, where premium locations command significant premiums while suburban areas remain accessible to middle-income buyers.
What's the average purchase price of a three-bedroom family house in Montevideo suburbs compared to coastal towns?
Three-bedroom family houses in Montevideo suburbs typically range from US$110,000 to US$250,000, depending on the specific neighborhood and property quality.
Suburban areas like Charleville offer family homes around US$175,000 (approximately R1,425,000), while upscale suburbs like Ciudad de la Costa can reach US$250,000 for well-appointed properties. These areas provide family-friendly environments with good schools and parks.
Coastal towns outside Punta del Este, such as La Paloma and La Pedrera, offer three-bedroom houses starting from US$180,000 to US$250,000. These beachside communities provide year-round residential options with seasonal rental potential during summer months.
The coastal premium reflects the desirability of beach access and vacation rental potential, though it's significantly less than Punta del Este proper. Coastal properties often appreciate faster than suburban Montevideo due to limited beachfront supply and growing domestic and international demand.
It's something we develop in our Uruguay property pack.
How much do beachfront properties in Punta del Este cost per square meter, and what's the price range for luxury villas?
Beachfront apartments in Punta del Este start at US$4,000 per square meter for standard properties, escalating to US$7,000-10,000 per square meter for high-end buildings with premium amenities and direct beach access.
| Property Type | Price Range | Features |
|---|---|---|
| Standard Beachfront Apt | US$4,000/m² | Basic ocean views, shared amenities |
| Luxury Beachfront Apt | US$7,000-10,000/m² | Direct beach access, premium finishes |
| Entry Luxury Villa | US$2-5 million | Private pools, gardens, ocean views |
| Premium Luxury Villa | US$5-15 million | Beachfront, extensive grounds, staff quarters |
| Ultra-Luxury Villa | US$15-20+ million | Prime beachfront, architectural significance |
Luxury villas in Punta del Este range from US$2 million to over US$20 million, with most quality properties falling between US$3-8 million. These properties typically feature private pools, extensive gardens, staff quarters, and direct beach access.
Even modest seafront apartments can start from US$150,000, but standout luxury properties with unique features or prime locations significantly exceed this baseline. The market caters to wealthy Argentines, Brazilians, and international buyers seeking exclusive South American beach retreats.
What's the price for rural land per hectare in Uruguay for agricultural use versus residential development?
Agricultural land in Uruguay reached a record national average of US$3,967 per hectare in early 2025, representing significant growth in farmland values driven by strong commodity markets and foreign investment.
Premium agricultural departments like Soriano and Colonia command US$8,500-12,000 per hectare for top-quality cropland, reflecting their superior soil quality and infrastructure access. These areas are highly sought after for soybean, wheat, and corn production.
Timberland and marginal agricultural plots typically cost US$2,500-5,000 per hectare, offering opportunities for forestry investment or future development. These properties often provide diversification benefits for agricultural portfolios.
Residential development land commands much higher prices, particularly in premium locations with sea or lake access near resort areas. These plots often cost US$15,000-40,000 per hectare, reflecting their potential for subdivision and residential construction.
Uruguay's agricultural land market benefits from political stability, clear property rights, and growing global food demand, making it attractive for both domestic and international investors seeking agricultural exposure in South America.
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How much does new construction cost per square meter in Uruguay compared to older properties?
New construction in Uruguay averages US$2,038 per square meter nationwide as of 2024-2025, though upscale coastal areas and custom builds can reach US$2,500-3,500 per square meter depending on finishes and location.
Newly built properties command premiums due to modern amenities, energy efficiency, updated building codes, and warranty coverage. Developers often include contemporary features like smart home technology, high-quality insulation, and modern kitchen and bathroom fixtures.
Older properties generally trade at lower prices, though prime urban locations and well-maintained historic buildings can still fetch high values. In Montevideo, older apartments in less desirable areas range from US$750-2,500 per square meter.
The price gap between new and old construction varies by location, with historic neighborhoods like Ciudad Vieja sometimes commanding premiums for restored colonial architecture. Buyers often factor renovation costs when purchasing older properties, which can add US$300-800 per square meter for comprehensive updates.
New construction offers predictable costs and modern standards, while older properties may provide character and established neighborhoods at lower entry prices, making both segments attractive to different buyer profiles.
What's the average monthly rent for a one-bedroom apartment in Montevideo, and how does it compare to smaller towns?
One-bedroom apartments in Montevideo rent for US$550-700 per month in city center and prime areas for long-term unfurnished leases, while less sought-after neighborhoods range from US$400-600 monthly.
Montevideo's rental market offers various options, with furnished apartments commanding higher prices due to convenience for short-term residents and international professionals. Location within the city significantly impacts rental rates, with neighborhoods like Pocitos and Carrasco at the upper end.
Smaller towns throughout Uruguay offer more affordable rental options, typically ranging from US$300-500 monthly for similar one-bedroom units. These markets serve local populations and offer lower cost of living for residents not requiring capital city amenities.
Resort towns like Punta del Este experience seasonal rental spikes during summer months (December-March), when short-term vacation rentals can command US$100-300 per night. Off-season long-term rentals in these areas often fall to US$400-600 monthly.
Rental yields in Montevideo typically range from 4.5-6% annually, making the market attractive for investors seeking steady income streams in a stable South American market with strong legal protections for landlords.
How much should buyers expect to pay in closing costs as a percentage of purchase price?
Buyers in Uruguay should budget 7-9% of the purchase price for total closing costs, which represents one of the higher transaction cost structures in Latin America.
| Cost Component | Percentage | Notes |
|---|---|---|
| Real Estate Agent | ~4% | 3.28% + 22% VAT (buyer pays) |
| Notary/Escribano | 3.66% | 1.5-3% + VAT typical |
| Transfer Taxes | 2% | Based on fiscal value |
| Registry & Certificates | ~0.1-0.3% | US$300-1,300 typical |
| Deed Registration | 0.55% | Official registration fee |
The notary (escribano) fee represents a significant portion of closing costs, typically 3.66% including VAT, as Uruguay requires notarial involvement for all real estate transactions. This professional handles due diligence, title verification, and legal documentation.
Real estate agent commissions are paid by buyers in Uruguay, unlike many other markets where sellers bear this cost. The standard rate of 3.28% plus 22% VAT totals approximately 4% of the purchase price.
Transfer taxes are calculated on the fiscal value rather than market value, which can provide some savings as fiscal values often lag market prices. However, all other fees are based on the actual transaction amount.
What's the average annual property tax on urban and rural properties, and how is it calculated?
Annual property tax (Contribución Inmobiliaria) in Uruguay ranges from 0.15-0.30% of cadastral value for urban properties, making it relatively low compared to many international markets.
Urban property taxes are calculated based on cadastral values, which typically fall below current market values. This assessment system helps keep annual tax burdens manageable for property owners while providing municipal revenue for local services.
Rural properties are assessed using different criteria linked to productivity measures through the CONETA index, with rates similar to or slightly lower than urban properties. Agricultural land taxation considers soil quality, climate conditions, and productive capacity rather than pure market value.
Property tax calculations are updated periodically by municipal authorities, though the process tends to lag behind rapid market appreciation. This creates a favorable environment for property owners, particularly in areas experiencing significant value growth.
Uruguay's transparent tax system and reasonable rates contribute to the country's attractiveness for real estate investment, especially when compared to neighboring countries with higher or more complex property tax structures.
How much do utility bills and condo fees add up to monthly for an average Montevideo apartment?
Monthly utilities for an average Montevideo apartment typically cost US$80-150, covering electricity, water, gas, and internet services based on standard usage patterns.
Electricity costs vary seasonally, with winter heating increasing bills during June-August months. Uruguay's renewable energy grid helps keep rates relatively stable, though costs depend on apartment size and energy efficiency features.
Condominium fees (gastos comunes) range from US$80-150 monthly in mid-range city buildings, covering building maintenance, security, cleaning, and shared amenities. Premium buildings with extensive amenities can reach US$250-350 monthly.
Combined utility and condo costs typically total US$160-300 monthly for most Montevideo apartments, representing a significant ongoing expense that buyers should factor into their budget calculations. These costs are generally lower than comparable properties in Buenos Aires or São Paulo.
It's something we develop in our Uruguay property pack.
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.
What are current mortgage interest rates in Uruguay and typical down payment requirements?
Mortgage interest rates in Uruguay range from 8-10% annually for residents as of September 2025, with banks typically offering higher rates for foreigners or buyers with overseas income sources.
Down payment requirements are 20-30% for local residents with established credit history and income documentation in Uruguay. This relatively moderate requirement makes homeownership accessible for qualified domestic buyers.
Foreign buyers face stricter requirements, typically needing 30-50% down payments along with extensive documentation proving income sources, legal residency status, and fund origins. Banks require comprehensive financial disclosure for international applicants.
Most Uruguayan mortgages are offered in US dollars rather than pesos, reflecting the country's dollarized economy. This provides stability against currency fluctuation but requires borrowers to have dollar-denominated income or substantial dollar reserves.
Mortgage terms typically extend 15-20 years for residential properties, with some banks offering longer terms for qualified borrowers. The approval process can take 60-90 days due to thorough documentation requirements and legal verification procedures.
How have property prices changed over the past five years, and what's the current growth rate?
Property prices in Uruguay have experienced steady growth over the past five years, with Montevideo and coastal areas seeing 18-24% total appreciation since 2020.
The annual appreciation rate has averaged 4-5% for mainstream residential segments, while luxury coastal properties experienced faster growth of 8-12% annually during 2023-2025. This reflects strong demand from both domestic and international buyers.
As of mid-2025, urban condominiums and houses in Montevideo, Colonia, and Punta del Este are growing 5-7% year-over-year, indicating sustained market momentum. This growth rate exceeds inflation while remaining sustainable compared to speculative bubbles in other markets.
Rural farmland has experienced even stronger appreciation, with agricultural land prices rising significantly due to global commodity demand, foreign investment, and Uruguay's stable agricultural policies. Premium cropland in departments like Soriano has seen particularly strong gains.
It's something we develop in our Uruguay property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Uruguay's real estate market offers compelling opportunities for both investors and residents, with stable appreciation rates and transparent legal frameworks that protect property rights.
While transaction costs are relatively high at 7-9% of purchase price, the market's stability and growth potential make it attractive for long-term investment strategies in South America.
Sources
- Uruguay Price Forecasts - TheLatinvestor
- Average House Price in Uruguay - TheLatinvestor
- Montevideo Best Neighborhoods - TheLatinvestor
- Punta del Este Property - TheLatinvestor
- Uruguay Casa Apartments for Rent
- Cost of Living in Uruguay - International Living
- Closing Costs Uruguay - ForSale
- Land Prices Uruguay 2024 - Farmland Uruguay