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
What do the latest numbers reveal about Uruguay’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Uruguay, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Montevideo's rental yields are projected to stabilize at 6% by 2024, attracting investors
Montevideo's rental market is catching the eye of investors, with rental yields expected to stabilize around 6% by 2024.
In 2023, the city showed promising signs for those looking to invest in real estate. This stability offers a consistent return on investment, a crucial factor for potential buyers. The Global Property Guide provides insights into how these yields vary based on location and apartment size.
For example, in popular areas like Pocitos, a studio apartment can yield about 5.73%, while a larger, 4-bedroom apartment might offer up to 6.03%. This range suggests that no matter the property type, investors can expect a solid return.
By 2024, the expectation is that these yields will stabilize around 6%, making Montevideo an attractive option for investors. This stability means investors can plan their finances with more certainty, knowing that their investment will likely yield a steady income.
Montevideo's rental market is catching the eye of investors, with rental yields expected to stabilize around 6% by 2024.
In 2023, the city showed promising signs for those looking to invest in real estate. This stability offers a consistent return on investment, a crucial factor for potential buyers. The Global Property Guide provides insights into how these yields vary based on location and apartment size.
Sources: Global Property Guide
2) Montevideo’s residential vacancy rate is expected to drop to 5% by 2026 due to rising demand
Montevideo is buzzing with a surge in demand for residential properties.
As the city grows, more people are flocking to Montevideo, drawn by its vibrant urban life and opportunities. This influx is fueling a rising need for housing, making the city a hot spot for property transactions. With urbanization on the rise, Montevideo is becoming a major hub for those looking to settle down.
To keep up with this demand, the city has seen a boom in housing projects. By the end of 2023, a significant number of new housing units were completed, showcasing the ongoing construction efforts. These projects are crucial in addressing the housing needs, which is why experts predict a drop in vacancy rates.
The rental market is also thriving, with both rental yields and prices on the upswing. This indicates a strong rental market, suggesting that more people are opting for rental properties. As a result, the vacancy rates are expected to decline further.
Montevideo's real estate scene is dynamic, with new developments popping up to meet the growing demand. The city's appeal is undeniable, attracting both locals and newcomers alike. This trend is expected to continue, with the residential vacancy rate projected to decrease to 5% by 2026.
Sources: Real Estate in Uruguay, Real Estate in Uruguay, Uruguay XXI
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.
3) Beachfront residential property prices in Uruguay are expected to rise by 12% by 2026
The average price of beachfront residential properties in Uruguay is projected to increase by 12% by 2026.
Uruguay's real estate market is thriving, thanks to a stable economy and supportive government policies. These factors have drawn in foreign investors, especially in coastal hotspots like Punta del Este, a favorite among both locals and international buyers, including celebrities.
The country's real estate market is on a steady rise, with its value expected to jump from US$247.50 billion in 2024 to US$295.30 billion by 2028. This consistent growth rate is a clear indicator of why property prices are climbing.
Infrastructure improvements are making previously hard-to-reach areas more appealing, which in turn is boosting property values. Uruguay's political stability and attractive conditions for foreign investors, such as tax breaks and legal protections, are also driving up demand for beachfront properties.
These elements combined create a perfect storm for property value appreciation, making Uruguay an enticing option for potential buyers looking for a stable investment. The allure of owning a piece of paradise in a politically stable and economically sound country is hard to resist.
Sources: Real Estate in Uruguay, Real Estate Market Insights 2025, Ideal Time to Invest in Uruguay 2025
4) Homes in Punta del Este reach nearly 90% occupancy during summer
In Punta del Este, homes boast nearly 90% occupancy rates during the summer, driven by high demand and limited supply.
This Uruguayan hotspot draws many tourists, especially from Argentina and Brazil. Brazilian tourists have surged in recent years, balancing the dip in Argentine visitors and keeping demand strong.
The allure of Punta del Este lies in its prime properties. Homes with top locations or amenities like pools are in high demand, often booked well in advance.
Some properties even reach 95% occupancy before the season kicks off, highlighting their popularity. This trend underscores the competitive nature of the rental market here.
For those considering a purchase, understanding these dynamics is crucial. The limited availability of desirable properties fuels this high occupancy, making it a potentially lucrative investment.
Sources: El Observador, El Observador, Cronista, El País
5) Homes in Punta del Este are priced 40% higher per square meter than the national average
Punta del Este is a coastal gem in Uruguay, famous for its luxury properties and high demand.
In 2023 and 2024, homes in Punta del Este were priced significantly higher than the national average. Apartments sold for UYU 126,545 per square meter, and houses for UYU 130,037 per square meter, compared to the national average of UYU 2,420 per square meter.
Several factors contribute to these higher prices. The town's reputation for luxury and exclusivity attracts high-end buyers. Its beautiful beaches and scenic views make it a popular destination for tourists and second-home buyers. Additionally, Punta del Este's economic growth and favorable investment climate draw investors, further driving up property values.
Sources: Aparthotel, Properstar, Real Estate in Uruguay
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6) Homes in Uruguay’s wine regions are a niche investment, with prices rising by 10% annually
Homes in Uruguay’s wine regions are now a niche investment market, with prices climbing by 10% each year.
This surge is fueled by the growing global recognition of Uruguayan wines, drawing attention to the area's real estate. As the wine industry blossoms, it attracts both tourists and investors, leading to a higher demand for properties that cater to wine tourism or vineyard cultivation.
Uruguay's stable economy and strategic location further enhance its appeal as an investment destination. These factors, along with the robust growth of the wine industry, are key drivers behind the steady increase in property prices in these regions.
Investors are particularly interested in properties that can be transformed into boutique hotels or charming bed-and-breakfasts, capitalizing on the rising trend of wine tourism. This not only boosts property values but also contributes to the local economy.
Moreover, the scenic beauty and tranquil lifestyle of Uruguay’s wine regions offer an attractive proposition for those looking to escape the hustle and bustle of city life. This lifestyle appeal, combined with the economic benefits of investing in a growing market, makes these properties highly sought after.
Sources: Real Estate in Uruguay, Uruguay Residential Property Market Analysis 2024, Buying Property in Uruguay in 2024
7) Homes with solar panels in Uruguay sell for 12% more
In Uruguay, homes with solar panels are selling for 12% more than those without.
This trend, noticeable since 2023, highlights the growing importance of solar energy in the real estate market. The main driver behind this increase is the economic benefits that solar panels offer. Homeowners enjoy significant savings on energy costs, making these properties more appealing to buyers.
Investing in solar panels is often a smart financial decision. The initial installation cost is typically offset by the higher resale value, providing a compelling reason for homeowners to consider this upgrade. Buyers are increasingly attracted to the idea of reduced utility bills, which adds to the property's allure.
Globally, studies have shown that homes with photovoltaic systems tend to sell at better prices. This is because the extra money earned from selling a solar-equipped home usually surpasses the installation expenses, making these properties a wise investment.
In Uruguay, the trend is particularly strong, as the country continues to embrace renewable energy solutions. The appeal of solar-powered homes is not just about cost savings; it's also about contributing to a sustainable future.
As more buyers recognize the long-term benefits of solar energy, the demand for these homes is expected to grow. This shift in buyer preferences is reshaping the real estate landscape, making solar panels a valuable asset for homeowners.
Sources: SES LATAM
8) Montevideo boasts over 100 residential developments with luxury apartment options
Montevideo is buzzing with over 100 luxury residential developments offering high-end apartments.
Thanks to a stable economy and favorable conditions for foreign investors, the city has become a magnet for real estate investment. One of the most talked-about projects is the Le Mont tower in Puertito del Buceo. Developed by Planet Partners, it boasts 23 floors and 105 luxury apartments, with prices reaching up to $10,000 per square meter. This project is designed to attract both local and international buyers seeking premium living spaces.
Uruguay's real estate market is on the rise, with the residential sector expected to hit $175.50 billion by 2024. This growth is fueled by a stable political climate and strong economic performance, alongside tax incentives and legal protections that make foreign property investment appealing.
Montevideo's luxury offerings aren't just about high-rise towers. The city also features modern villas and exclusive gated communities, as noted by Uruguay Sotheby's International Realty. Real estate agencies like Engel & Völkers provide a variety of luxury properties, especially in popular areas like Carrasco, catering to the high standards of discerning buyers.
These developments are not just about opulence; they reflect a broader trend of urban transformation. The city is evolving, with new projects that blend modern architecture with the charm of Montevideo's traditional neighborhoods. This makes it an exciting time for potential buyers looking to invest in a city that offers both luxury and cultural richness.
Montevideo's appeal is further enhanced by its vibrant lifestyle, combining the tranquility of coastal living with the energy of a bustling urban center. This unique blend makes it a top choice for those seeking a high-quality living environment in South America.
Sources: El Pais, Real Estate in Uruguay, Uruguay Sotheby's Realty, Engel & Völkers, Metalocus
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.
9) Property values in Montevideo’s Ciudad Vieja have risen by 25% over the past decade
Montevideo's Ciudad Vieja neighborhood has experienced a 25% rise in property values over the past decade.
Montevideo is known as the most expensive city in Latin America for buying property, with prices averaging $3,454 per square meter. This city-wide trend sets the stage for price increases in popular areas like Ciudad Vieja.
Ciudad Vieja is a historic gem, combining colonial charm with modern amenities, making it a hotspot for tourists and investors alike. The area is bustling with offices, shops, cultural galleries, and restaurants, which enhances its appeal and investment potential.
Security is a priority here, with over 3,000 video surveillance cameras installed, adding to the neighborhood's attractiveness. This focus on safety is a significant draw for potential buyers and investors.
Despite new constructions popping up, many investors are drawn to historic neighborhoods for their unique architecture and charm. Ciudad Vieja is no exception, with strong demand for used properties driving up values.
Sources: Ambito, Digital Nomads World, Plaza Mayor
10) Pocitos in Montevideo is the priciest neighborhood, averaging $3,500 per square meter
The Pocitos neighborhood in Montevideo is a hotspot for those seeking a blend of urban living and coastal charm.
With its upscale residences, trendy cafes, and stunning beaches, Pocitos attracts both locals and expats, making it a vibrant community. This popularity is a key reason why real estate prices are on the higher side.
Buyers and investors are drawn to the area’s mix of modern high-rise apartments and charming historic homes. This variety not only adds to the neighborhood's appeal but also fuels demand, pushing prices upward.
Pocitos' prime location and strong rental demand make it a top choice for real estate investment in Uruguay. These factors contribute to the neighborhood's reputation as a desirable place to live and invest.
It's no surprise that the average price per square meter in Pocitos is around $3,500, reflecting its status as one of the most expensive areas in Montevideo.
For those considering a property purchase, Pocitos offers a unique blend of lifestyle and investment potential, making it a standout choice in the real estate market.
Sources: Concretar, Infonegocios.biz, El Pais
11) Nearly 70% of properties sold in Uruguay are fully furnished
The real estate market in Uruguay is on the rise, with a projected value of US$247.50 billion by 2024.
In Uruguay, the residential sector is booming, especially in urban hotspots like Montevideo. There's a high demand for housing, prompting developers to build new high-rise apartments and condos. This surge in construction is reshaping the skyline and offering more options for potential buyers.
Uruguay is a magnet for foreign investors, thanks to its favorable conditions like tax incentives and legal protections. Foreigners can buy property with the same rights as locals, making it easy to dive into the market without needing permanent residency. This openness is a big draw for those looking to invest abroad.
Nearly 70% of properties sold in Uruguay come fully furnished, which is a huge convenience for buyers. This trend is particularly appealing to international buyers who want a hassle-free move. It also reflects the country's readiness to cater to a global clientele.
With an annual growth rate of 4.51% from 2024 to 2028, the market shows no signs of slowing down. This steady increase indicates a robust and resilient real estate environment, making it a promising investment opportunity.
Whether you're looking for a vacation home or a permanent residence, Uruguay's real estate market offers a variety of options. The combination of urban development, investor-friendly policies, and furnished properties makes it an attractive choice for many.
Sources: Real Estate in Uruguay, Real Estate in Uruguay Blog, 7 Heaven Realty
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12) More than 50% of homes sold in Uruguay feature private outdoor spaces like patios or gardens
In Uruguay, over 50% of homes sold feature private outdoor spaces like patios or gardens.
This trend is fueled by Uruguay's pleasant climate and stunning natural beauty, making outdoor living spaces highly desirable. Imagine enjoying the outdoors from your own home, especially in beautiful coastal areas like Punta del Este and Montevideo.
Uruguay's real estate market is increasingly focused on integrating natural elements into home design. Luxury developments emphasize natural light and open spaces, and buyers are keen on homes that offer these features, making private outdoor spaces a key selling point.
The demand for homes with outdoor spaces is also driven by the dynamics of the real estate market in Uruguay. Coastal hotspots like Punta del Este attract both local and international buyers, including high-net-worth individuals and celebrities.
The limited availability of desirable properties in these areas further fuels demand, making homes with outdoor spaces even more appealing. In high-demand areas, private outdoor spaces are a major attraction for potential buyers.
As a result, the real estate market in Uruguay continues to thrive, with outdoor spaces being a significant factor in property sales. Buyers are increasingly prioritizing homes that offer a connection to nature, enhancing their living experience.
Sources: Real Estate in Uruguay, Architizer, Van Bevern
13) Ocean-view properties in Uruguay are priced 30% higher on average
In Uruguay, properties with ocean views are priced 30% higher on average.
Coastal hotspots like Punta del Este and José Ignacio are in high demand, thanks to their stunning beaches and scenic landscapes. These areas are not just popular with locals; they attract international buyers who are drawn to the favorable climate and vibrant lifestyle.
Ocean-view properties come with a unique charm. They often feature beachfront locations and modern amenities, making them highly desirable. This allure naturally pushes their prices up, leading to a higher average cost compared to properties without such views.
Take Punta del Este, for example. Known as the "Saint-Tropez of South America," it offers luxurious amenities and prime locations, which means properties here with ocean views are priced at a premium. José Ignacio, another trendy beach spot, is a magnet for high-end tourists and celebrities, further boosting the value of ocean-view properties.
Sources: Real Estate Trends in Uruguay, Venta de Casas baratas con Vista al mar en Uruguay
14) Property prices in Uruguay’s interior are 50% lower than in coastal areas
In Uruguay, property prices in the interior regions are about 50% lower than in coastal areas.
Coastal hotspots like Punta del Este and Montevideo are famous for their luxury homes and city conveniences, which naturally push up demand and prices. For instance, in 2023, Punta del Este's beachfront properties ranged from $200,000 to $20 million, making it a prime location for high-end real estate. Montevideo, the bustling capital, also saw a rise in property prices, with new homes averaging UYU 83,000 (US$2,199) per square meter. Despite high inflation causing a slight dip in real house prices, these areas remain expensive.
In contrast, interior regions like Colonia and Maldonado offer a different story. Colonia's median property value was around UYU 141,835 (approximately US$3,500) per square meter, and Maldonado's figures were similar. This stark difference highlights the price gap between the coast and the interior. The lower demand and less urban development in these areas contribute to the reduced property prices.
For those considering a move to Uruguay, the interior regions present a more affordable option. With less demand and fewer urban amenities, these areas offer a quieter lifestyle at a fraction of the cost. The price disparity is clear: interior properties are significantly cheaper than their coastal counterparts.
While coastal areas attract those seeking luxury and convenience, the interior regions appeal to those looking for affordability and tranquility. The choice between the two depends on personal preferences and budget. However, it's evident that the interior offers a more budget-friendly real estate market.
Sources: Properstar, International Living, Global Property Guide
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.
15) Uruguay's property appreciation rate exceeds inflation by 4% annually
The average property appreciation rate in Uruguay outpaces inflation by 4% annually.
Uruguay's real estate market is buzzing with activity, driven by a growing interest in sustainable properties and government incentives for eco-friendly construction. This vibrant market suggests that property values are on an upward trajectory.
In 2024, Uruguay's inflation rate was estimated at around 4.89%, with future projections ranging from 4.5% to 5.4%. This sets the stage for understanding the economic backdrop against which property values are rising.
In popular areas like Pocitos and Centro, capitalization rates hover between 5.43% and 5.70%, which are real returns above inflation. This indicates a promising return on investment, further fueling property appreciation.
Sources: Statista, 7 Heaven Realty, Fleitas Zimet
16) Uruguay's average property price has risen by 8% annually over the past five years
The average property price in Uruguay has increased by 8% annually over the past five years due to several key factors.
First, the price of new housing units, especially those with one and two bedrooms, has risen by 8% annually. This trend is supported by the ANV report, which highlights similar growth rates for different types of properties. Additionally, the real estate market in Uruguay has been experiencing steady growth, driven by a stable political climate and strong economic performance. These conditions have made the market attractive to foreign investors, further boosting demand.
Moreover, there is a high demand for housing in urban areas like Montevideo and coastal regions, which has contributed to the price increases. Regional variations also play a role, with areas like Canelones seeing the highest average prices. The dynamic activity in the market, such as the significant increase in sales in Canelones, particularly in Ciudad de la Costa, indicates a robust demand that supports rising prices.
In Montevideo, the average price per square meter increased by 6.5% in the first semester of 2024 compared to the previous semester, showing a consistent upward trend in property values.
Sources: ANV Report, Real Estate in Uruguay, Uruguay Residential Property Market Analysis
17) Vacation properties in Uruguay offer an average rental yield of 7% per year
Investing in vacation properties in Uruguay offers an attractive opportunity with an average rental yield of 7% per year.
This appealing yield is largely due to the higher rental rates in hotspots like Montevideo and Punta del Este, where tourists are eager to pay more for short-term stays. These locations are particularly desirable, drawing in visitors who are willing to spend extra for the perfect vacation spot.
Seasonal demand plays a crucial role in boosting rental yields. During peak times, such as holidays and summer months, the demand for vacation rentals skyrockets. If you manage and market your property well, this surge can significantly enhance your returns.
Uruguay's growing popularity as a tourist destination also contributes to the steady rental yield. The country's stable economy and favorable tax conditions make it an attractive place for real estate investment, ensuring a competitive edge for vacation rentals.
Moreover, the 7% yield reflects the increasing allure of Uruguay's real estate market. Investors are drawn to the country's steady growth and investment-friendly environment, making vacation properties a smart choice.
Sources: Inmobiliaria La Porta, Real Estate in Uruguay
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18) Foreign investors buying real estate in Uruguay have increased by 15% since 2020
Since 2020, Uruguay has become a hotspot for foreign investors in real estate, with a 15% increase in purchases.
The real estate market in Uruguay is thriving, especially in 2024, thanks to high demand and favorable economic conditions. Montevideo and Punta del Este are the stars of this boom, attracting both local and international buyers. These prime locations are driving the market's expansion, making them the go-to spots for savvy investors.
Uruguay's political and economic stability is a major draw for foreign investors. Known for its transparency and low corruption levels, the country offers a secure environment for investors from Argentina, Brazil, and beyond. This stability is a key factor in boosting investor confidence and interest in the real estate sector.
The Uruguayan government is also playing its part by implementing policies that encourage real estate development. With tax incentives for foreign buyers and infrastructure projects on the rise, the sector is seeing significant growth. These initiatives are making Uruguay an even more attractive destination for international buyers.
While specific data on the 15% increase in foreign investors isn't readily available, the overall trend is clear: international interest in Uruguayan real estate is strong and sustained. The combination of market growth, political stability, and government incentives is creating a perfect storm for investment.
Sources: Real Estate in Uruguay, Real Estate Q&A, Benoit Properties
19) Demand for eco-friendly and sustainable homes in Uruguay has increased by 10% over the past three years
Uruguay has experienced a 10% rise in demand for eco-friendly homes over the past three years.
This trend is driven by Uruguay's strong commitment to environmental sustainability, which is reshaping its real estate market. The construction industry is now focusing on reducing environmental impact by using sustainable materials and energy-efficient techniques. This shift is evident in the increasing number of buildings receiving LEED certification, highlighting Uruguay's dedication to sustainable infrastructure.
People in Uruguay are becoming more aware of environmental issues, which is fueling a desire for responsible living. This awareness has led to a growing demand for eco-friendly homes that offer features like energy efficiency and innovative building materials. These homes are often part of eco-communities that include shared amenities such as organic gardens and renewable energy sources.
Uruguay's real estate market is adapting to these changes by offering properties that align with these values. The focus is on creating living spaces that not only meet the needs of residents but also contribute to a healthier planet. This approach is attracting buyers who are interested in sustainable living and want to invest in properties that reflect their environmental values.
As a result, the market for eco-friendly homes in Uruguay is expanding, with more developers incorporating sustainable practices into their projects. This shift is not just a trend but a reflection of a broader movement towards sustainability in the country. Buyers are increasingly looking for homes that offer a balance between modern living and environmental responsibility.
Sources: Real Estate in Uruguay, Constructive Voices, Real Estate in Uruguay
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.