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 is happening in Uruguay’s real estate market? Are prices on the rise or decline? Is Montevideo still attracting foreign investors? How are Uruguay’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the country, from Punta del Este to Colonia and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Uruguayan real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Punta del Este will see higher rental yields due to strong tourist season demand
Punta del Este is set to see a boost in rental yields thanks to its bustling tourist season.
Back in March 2018, Punta del Este welcomed a record-breaking 385,328 visitors, highlighting its enduring popularity among tourists. This steady influx of visitors keeps the area buzzing, especially during peak seasons.
The charm of Punta del Este as a luxury hotspot means short-term rentals are often fully booked. This high demand is a key driver for increasing rental yields, as more tourists seek out exclusive stays.
Infrastructure upgrades, like improved airport facilities and better connectivity, are making it even easier for tourists to flock to the area. These enhancements are expected to further fuel the demand for rental properties.
With these developments, property owners in Punta del Este can anticipate higher occupancy rates and, consequently, better returns on their investments.
Sources: Real Estate in Uruguay, CEIC Data, Travel and Tour World
2) Montevideo rents will rise moderately as demand for urban living stays strong
Rents in Montevideo are on the rise as the city continues to attract more residents.
Montevideo's rental prices saw a 4.91% increase in 2024, reflecting a growing demand for housing. This trend is largely driven by the city's expanding urban population. In 2023, the urban population growth rate was 0.09589%, indicating a steady shift towards city living. Montevideo itself saw its population grow to 1,781,000 in 2024, a 0.39% increase from the previous year.
The city's charm as a cultural and economic center is pulling in more expatriates and digital nomads, further boosting the demand for rental properties. Montevideo's vibrant lifestyle, with its rich cultural scene and bustling economy, makes it a magnet for those seeking a dynamic urban experience.
New urban infrastructure and amenities are popping up, making the city even more appealing. This development is not just about convenience; it's also about enhancing the quality of life, which in turn is pushing property values and rental prices higher.
For those considering a move, it's worth noting that Montevideo offers a unique blend of old-world charm and modern living. The city's neighborhoods, each with its own character, provide a variety of options for potential renters. From the historic streets of Ciudad Vieja to the modern vibe of Pocitos, there's something for everyone.
As demand for urban living remains strong, rents in Montevideo are expected to continue their moderate rise. This trend is a testament to the city's growing appeal and the increasing number of people choosing to call it home.
Sources: Trading Economics, Macrotrends, Real Estate 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.
3) Online real estate platforms are evolving with advanced tools for buyers and sellers
Online real estate platforms in Uruguay are becoming more advanced, with iinfocasas.com.uy experiencing a 36.64% increase in visits in 2024.
This surge in traffic means nearly a million visits, showing that more people are turning to these platforms, which pushes for better features and user experiences.
With more properties listed online, buyers now have a wider selection to choose from, making these platforms increasingly appealing.
Advanced features like virtual tours and 3D walkthroughs are now common, allowing buyers to explore properties in detail without leaving their homes, saving both time and effort.
AI and machine learning are revolutionizing the search process by offering personalized property recommendations, making it easier for buyers to find what they want.
Secure online payment systems have also been introduced, making transactions safer and more efficient for everyone involved.
Sources: SEMrush, Real Estate in Uruguay, Global Property Guide
4) Eco-friendly homes are becoming more popular as Uruguayan buyers grow more environmentally conscious
Eco-friendly homes are gaining traction in Uruguay as more people become conscious of environmental issues.
In 2023, there was a noticeable uptick in the construction of these homes, with 185 projects getting the green light, leading to the creation of 4,751 new eco-friendly dwellings. This marks a 7% growth in the sector, showing a clear shift in priorities.
Companies are also jumping on the bandwagon, with firms like Lumin investing USD 136 million to ramp up the production of eco-friendly plywood panels. This trend is evident in real estate listings, which now often highlight eco-friendly features, indicating that buyers are keen on environmentally responsible homes.
The Uruguayan government is playing its part by tweaking regulations to promote sustainable construction. They've removed price ceilings for certain housing projects, making it easier for developers to focus on eco-friendly designs, which is further fueling this green trend.
Sources: Uruguay XXI, The Madrona Group
5) Real estate prices will slightly rise nationally as infrastructure improvements enhance area accessibility
Uruguay is investing heavily in infrastructure, with plans to spend around US$7.2 billion on projects like roads and energy by 2024.
This investment is making more areas accessible, which is a big deal for the real estate market. In 2024, newly built houses saw a price jump of 13.33% in the second quarter, hitting UYU 85,000 (US$2,038) per square meter. This increase is especially noticeable in places where road improvements have been made.
For example, nearly USD 3.7 billion is earmarked for road infrastructure over five years, with over 80% of national roads getting upgrades. This means better connectivity and more attractive real estate opportunities.
New airports are also part of the plan. The Salto airport, opened in February 2024, has made previously remote areas more accessible. This has cut travel times and boosted property demand in these regions.
Real estate experts are seeing growth in areas with planned infrastructure projects. This trend is pushing property values up, making it a good time to consider buying.
With these improvements, the national real estate market is likely to see a slight price increase as more areas become accessible. Infrastructure is key to this growth.
Sources: The Rio Times, Real Estate in Uruguay, Uruguay XXI
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.
6) Uruguay’s stable politics attract foreign buyers seeking safe investments
Uruguay's political stability makes it a top choice for foreign buyers looking for safe investments.
With a political stability index of 0.96 in 2023, Uruguay stands well above the world average, showcasing its long-standing tradition of stability. This is a big deal for investors who want a secure environment. The country’s reputation for low corruption further boosts its appeal, as transparency reduces risks tied to political and economic instability.
Uruguay's economic landscape is also inviting for foreign investors. The country has shown steady GDP growth, and experts predict this will accelerate from 2023 to 2025. This economic resilience is backed by government efforts to attract foreign investment, like diversifying the economy and focusing on renewable energy.
For those considering property investment, Uruguay offers a unique blend of stability and growth potential. The government’s initiatives are not just about numbers; they’re about creating a welcoming environment for international investors. This makes Uruguay a standout choice for those seeking a reliable investment destination.
Investors are drawn to Uruguay not just for its economic prospects but also for its commitment to maintaining a transparent and stable political climate. This combination of factors makes it an attractive option for those looking to invest in a country with a solid track record.
Sources: Political Stability Index, Foreign Direct Investment, Economic Stability and FDI
7) Property prices in Uruguay's interior, such as Tacuarembó, stay stable, drawing investors seeking affordable options
In Uruguay's interior regions like Tacuarembó, property prices have stayed stable, making them a hot spot for investors seeking affordable options.
While coastal areas such as Montevideo have seen significant price hikes, Tacuarembó offers a more budget-friendly alternative. For example, in early 2023, newly built houses in Montevideo were much pricier compared to those in Tacuarembó.
Real estate agencies note a steady demand for properties in these interior regions, even as the overall market in Uruguay experienced a slight dip. This consistent interest underscores the appeal of Tacuarembó for those eyeing stable and affordable investments.
Investors often highlight the affordability and stability of Tacuarembó's property market as key reasons for their investment choices. Testimonials frequently mention these factors as crucial in their decision-making process.
Government initiatives are also boosting the region's potential. With significant investments in infrastructure like roads and airports, Tacuarembó is becoming even more attractive to investors.
Surveys show that the lower entry costs in these areas are a major draw, offering the potential for stable returns. This makes Tacuarembó a compelling option for those looking to invest wisely.
Sources: Global Property Guide, Real Estate in Uruguay, Uruguay XXI
8) New road developments will increase property values in previously isolated regions
New road developments are set to increase property values in areas that were once hard to reach.
In Uruguay, the government is pouring nearly USD 2 billion into road infrastructure over 2023-2024. This hefty investment is all about making travel easier and connecting more places, which is a big deal for property values.
Looking back, we see a clear pattern: when roads improve, property prices go up. Take Montevideo, for instance, where property prices rose by 3% in 2022 after new roads were built. This shows how better roads can make properties more valuable.
Experts in real estate are saying that property prices will keep climbing as roads get better and the economy grows. They’re predicting a 3% to 7% increase in property prices by 2025, thanks to a strong economy and more foreign investors showing interest.
Surveys are also showing that more people are looking to buy in these newly accessible areas. This growing interest is another sign that property values are likely to rise as these regions open up.
With these new roads, areas that were once off the beaten path are becoming more attractive to buyers, which is expected to boost property values significantly.
Sources: Uruguay XXI, Trade.gov, Real Estate in Uruguay
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.
9) Large family homes are losing popularity as smaller households become more prevalent
Traditional large family homes are losing their appeal as smaller households become the norm in Uruguay.
Back in 1908, the average household size was 5.7 people, but now it's down to just 2.5 people. This shift means fewer people need those big, sprawling homes. Instead, there's a noticeable rise in single-person or couple-only households. In 2023, 29% of homes were single-person households, a big jump from just 11% in 1963.
As more folks move to cities, the rural population is shrinking. Urban areas offer smaller, more practical living spaces that are easier on the wallet. This urban migration is a key factor in the growing demand for smaller homes. The real estate market is catching on, with a surge in sales of compact housing units and apartments.
Montevideo, for instance, is seeing a boom in demand for these smaller homes. Reports from 2024 suggest that house prices are expected to keep climbing, especially in urban hotspots. This trend is not just about economics; it's also about lifestyle. Many people are embracing minimalism and downsizing, preferring the simplicity of compact living spaces.
Consumer preferences are shifting, and the market is adapting. The desire for smaller homes is driven by a mix of practicality and lifestyle choices. As more people opt for urban living, the demand for large family homes continues to wane.
Sources: Mercopress, Global Property Guide
10) Uruguay’s real estate market benefits as it becomes a popular spot for European retirees
Uruguay is becoming a hotspot for European retirees, and it's shaking up the real estate market in a big way.
In 2023, 50,556 real estate transactions were recorded, largely fueled by foreign buyers, including a significant number of Europeans. This surge is particularly noticeable in places like Montevideo and Punta del Este, where the property market is buzzing with activity. Punta del Este, once a seasonal retreat, has evolved into a vibrant year-round destination, drawing in wealthy investors with its stunning landscapes and top-notch infrastructure.
Real estate agencies are stepping up to meet this demand, tailoring their services to European clients. Take Team Haverkate, for instance; they offer personalized attention and high-standard service, ensuring that European retirees find properties that suit their specific needs. This approach makes retirees feel at ease and well-informed during their property hunt.
Uruguay's allure is also getting a boost from media coverage, which highlights the country's high quality of life, favorable tax regime, and rich cultural scene. These features are catching the eye of potential retirees, making Uruguay an attractive option. The Pensionado Visa program is another draw, providing a straightforward path to residency for retirees with stable foreign-sourced passive income, simplifying the process of settling down in Uruguay.
Sources: Global Property Guide, Real Estate in Uruguay, Global Passport
11) Digital nomadism is boosting demand for flexible living options in Uruguay
Uruguay is becoming a hotspot for digital nomads, thanks to its welcoming policies and vibrant lifestyle.
In 2023, over 2,000 digital nomads chose Uruguay as their base, drawn by the country's strategic efforts to attract IT talent. The government has been proactive, offering special permits that make it easier for remote workers to settle in. This trend is expected to continue, with more digital nomads eyeing Uruguay as a prime destination.
By 2024, cities like Montevideo and Punta del Este saw a surge in co-working and co-living spaces. Places like Opta Coliving and El Viajero Coliving & Hostel are popping up, offering a mix of private rooms and shared spaces. These setups cater to the social and professional needs of digital nomads, who often seek a balance between privacy and community.
The demand for short-term rentals is also on the rise, as digital nomads look for flexible living options. Establishments like Selina Montevideo are stepping up, providing accommodations that include coworking areas and local experiences. This adaptability is key for nomads who thrive on dynamic lifestyles.
Uruguay's strong internet infrastructure is another big draw. With high internet penetration and fast speeds, remote work becomes seamless, making the country even more appealing to digital nomads. This connectivity supports their need to work efficiently from anywhere.
Sources: Location.uy, Datareportal, Mapmelon
Don't buy the wrong property, in the wrong area of Uruguay
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Rents in smaller coastal towns will rise as they gain popularity with locals and foreigners
Rents in smaller coastal towns in Uruguay are on the rise as these areas gain popularity among both locals and foreigners.
In May 2023, rents jumped by 6.42%, reaching an average of UYU 18,586 (US$491) per month. This surge is largely happening in smaller coastal towns, and experts predict this trend will continue. As real estate prices are expected to climb by 2025, rental yields in these areas are likely to follow suit.
Tourism is booming, with January 2023 seeing 10% more tourists than in 2019. Hotspots like Punta del Este and José Ignacio are drawing crowds, boosting the allure of coastal living. This influx of visitors hints at a growing population, which naturally pushes rental prices up.
Uruguay's coastal real estate market is thriving, known for being a safe and attractive place to live. There's a noticeable uptick in interest from foreign buyers, especially from Argentina and Brazil. This demand is making coastal towns more popular, leading to higher rental prices.
Media and social media are playing a big role in this trend. They highlight the lifestyle and attractions of these towns, making them even more appealing. As more people discover these hidden gems, the demand—and prices—continue to rise.
With the combination of increased tourism, foreign interest, and media buzz, it's no surprise that rents in these charming coastal towns are climbing. The appeal of a laid-back lifestyle by the sea is hard to resist, and as more people flock to these areas, the rental market is set to heat up even more.
Sources: Global Property Guide, Location.uy, Real Estate in Uruguay
13) Demand for sustainable and eco-friendly properties is rising due to environmental initiatives
Uruguay is seeing a surge in demand for eco-friendly properties, thanks to a growing interest in sustainability.
Buyers are increasingly drawn to homes with green building certifications like LEED and EDGE, which emphasize energy efficiency and water conservation. These certifications are becoming a must-have for those who care about the environment.
Uruguay is also making waves with its shift to sustainable building materials, particularly timber. The country is home to South America’s first cross-laminated timber plant, paving the way for high-rise timber buildings. This shift reduces the use of traditional materials like concrete and steel, aligning with the eco-friendly preferences of modern buyers.
The Uruguayan government is backing this green movement by promoting timber frames for social housing. This support, along with media buzz about the environmental perks of sustainable homes, is catching the eye of potential buyers.
Educational programs are also making a difference, teaching both builders and consumers about sustainable living and construction. These initiatives are crucial in spreading awareness and skills, making eco-friendly homes more accessible and appealing.
Sources: Real Estate in Uruguay, Dialogue Earth, Barbot Engineers
14) Urbanization in Uruguay is boosting demand for city properties
Uruguay is seeing a noticeable shift as more people are moving to urban areas.
This trend is driven by younger people seeking better education and job opportunities in cities, where lifestyle amenities are more abundant. As a result, the demand for city properties is on the rise, especially in bustling urban centers like Montevideo and Punta del Este.
Montevideo and Punta del Este have become hotspots for foreign investment and urban development, which is pushing property values upward. These cities are not just attracting locals but also international buyers, making them vibrant real estate markets.
Uruguay's real estate market is known for its stability, with a gradual increase in property prices. This stability is appealing to investors and homebuyers alike, as it suggests a healthy and competitive market environment.
The expansion of public services and amenities in urban areas is another factor drawing people to cities. This development enhances the quality of life, making urban living more attractive and further boosting the demand for city properties.
With more residential real estate transactions happening, it's clear that Uruguay's urban property market is thriving. The combination of stable prices and increased demand makes it an exciting time for potential buyers looking to invest in city properties.
Sources: Trading Economics, Statista, Real Estate in Uruguay
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.
15) Luxury beachfront properties will stay in high demand, especially among foreign investors
Luxury beachfront properties in Uruguay are a hot commodity, especially for foreign investors.
There's been a noticeable uptick in foreign ownership of land in Uruguay, with many land sales involving international buyers. This trend highlights a growing interest in Uruguayan real estate, particularly in coastal areas like Punta del Este, where luxury beachfront properties are highly coveted for their breathtaking views and closeness to nature.
Uruguay's stable economy and favorable property laws make it a magnet for property investment. The country offers enticing incentives for foreign investors, such as tax benefits and residency programs, which further boost the appeal of luxury beachfront properties. The media spotlight on Uruguay as a prime property investment destination also draws international interest.
Uruguayan beachfront properties frequently appear in luxury real estate listings and publications, underscoring their allure among global buyers. Testimonials from foreign investors often highlight the ease of investment and the potential for high returns, reinforcing the strong demand for these properties.
Sources: Land Portal, Real Estate in Uruguay, La Cite 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.