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Where are the best places to invest in Uruguay right now? Is Montevideo still the top pick, or are cities like Punta del Este, Colonia del Sacramento, and Salto gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Uruguay and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Salto is attracting interest for its agricultural land investments and promising returns
Salto is becoming a hotspot for agricultural land investments, promising solid returns.
In the first half of 2023, land prices in Salto averaged USD 3,980 per hectare, marking a notable rise compared to other areas like Rocha. This increase is drawing attention from investors looking for profitable opportunities in agriculture.
Despite a tough drought in 2022-2023, Uruguay's agricultural sector is bouncing back with better rainfall and government backing. This recovery is fueling a steady demand for agricultural products, making Salto an attractive option for those eyeing long-term gains.
The Uruguayan government is actively supporting agriculture, having declared an agricultural emergency to aid affected sectors. This move shows their dedication to the industry's growth and stability, which is a reassuring sign for potential investors.
Investors are also encouraged by the government's proactive measures to tackle natural disasters and future pandemics. This commitment to safeguarding the agricultural sector enhances the appeal of investing in Salto.
With these factors in play, Salto is positioning itself as a promising destination for agricultural investments, offering a blend of rising land values and supportive policies.
Sources: Escritorio Arrospide, IMF eLibrary, IDB Invest
2) Tacuarembó is gaining attention for its fertile soil and growing agribusiness, making it a promising market for agricultural land investments
The city of Tacuarembó is emerging as a promising market for agricultural land investments, driven by its fertile soil and growing agribusiness sector.
In Uruguay, there's been a buzz around agricultural land, with over 183,000 hectares sold in the first half of 2024. This is double what was sold in the same period of 2023, showing a clear trend of increasing interest. Tacuarembó is riding this wave, becoming a hotspot for those looking to invest in agriculture.
Investors are pouring money into Uruguay's land, with USD 718 million spent in the first half of 2024. This isn't just local money; international investors are also eyeing the potential here. Tacuarembó, with its fertile lands, is likely a key player in this investment surge.
One of the big draws for Tacuarembó is its competitive pricing. While the average price of land in Uruguay was USD 3,910 per hectare in early 2024, Tacuarembó offers fertile land at a more attractive USD 3,262 per hectare. This makes it a smart choice for those looking to get more bang for their buck.
For those in the know, Tacuarembó's soil quality is a major selling point. The region's fertile grounds are perfect for a variety of crops, making it a prime spot for agricultural ventures. This insider knowledge is what savvy investors are banking on.
Sources: Escritorio Arrospide, Yield Gap, Land Portal
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.
3) Carmelo is gaining attention for its boutique wineries and potential in rural tourism development
Carmelo is becoming a hotspot for wine lovers and rural tourism enthusiasts.
With eight boutique wineries, mostly family-run, Carmelo offers unique wine-tasting experiences that attract enthusiasts seeking something special. Often called the "Uruguayan Tuscany," this charming town is gaining fame as a wine destination, drawing more visitors eager to explore its vineyards.
The Uruguayan government is backing this trend by supporting rural tourism. In 2023, they launched the Competitive Fund for Strengthening the Tourism Offer in Rural and Natural Areas, which provides financial support for projects in places like Carmelo. This initiative is set to fund several projects in 2024, further enhancing the region's appeal.
Wine tourism is not just about tasting; it's boosting the local economy too. The rise in visitors is benefiting sectors like hospitality and cuisine, creating a positive ripple effect that makes Carmelo even more attractive.
Locals are noticing the change, with more tourists exploring the town's scenic landscapes and enjoying its culinary delights. This influx is helping to transform Carmelo into a vibrant hub for rural tourism.
As more people discover Carmelo's charm, the town is poised to become a key player in Uruguay's tourism scene, offering a blend of wine, culture, and natural beauty.
Sources: Real Estate in Uruguay, Travel2Latam, Guruguay
4) Montevideo’s Pocitos neighborhood is in demand for rentals among young professionals
Pocitos in Montevideo is a hotspot for young professionals.
One big reason is the high occupancy rates in rental properties, showing strong demand. In 2024, the area offered attractive rental yields of 5.37%, making it a smart choice for property investors. This neighborhood is buzzing with activity, and it's not just about the numbers.
Rental prices in Pocitos jumped by 4.91% in July 2024, outpacing other Montevideo neighborhoods. This hike reflects the high demand, driven by a wave of young professionals seeking modern living spaces. The area is undergoing gentrification, which is reshaping its demographic landscape.
Real estate reports consistently highlight Pocitos as a top investment spot, thanks to its growing reputation and rising property values. The neighborhood is not just about numbers; it's about lifestyle. With a vibrant community and plenty of amenities, it's no wonder young professionals are flocking here.
Pocitos offers a lively atmosphere with lifestyle attractions that appeal to its residents. The neighborhood's charm is often featured in media, adding to its allure. This combination of factors keeps the demand for rental properties strong.
For those considering a move or investment, Pocitos stands out as a dynamic and promising choice. Its blend of modern living, community vibe, and investment potential makes it a compelling option.
Sources: Real Estate in Uruguay, Nearshore Outsourcing Hub
5) Punta del Este’s La Barra is booming with high rental yields during the summer tourist season
La Barra in Punta del Este is booming thanks to its impressive rental yields during the summer tourist season.
With 2,769,734 international visitors in the first nine months of 2023, Uruguay is seeing a tourist surge that surpasses all of 2022. This influx is a boon for La Barra, where high occupancy rates are the norm during the summer months, making it a hotspot for property investors.
In La Barra, rental yields are a standout, ranging from 5.99% to 9.89%, which is higher than other parts of Uruguay. This strong demand allows property owners to set premium rental prices, making it a lucrative investment. The anticipated 3% to 7% rise in real estate prices by 2025 further cements La Barra's status as a prime investment location.
Platforms like Airbnb are thriving in La Barra, highlighting its popularity among tourists. This trend not only supports high rental yields but also ensures steady occupancy rates during peak seasons. The neighborhood's trendy image, bolstered by media coverage, continues to draw both tourists and investors.
La Barra's appeal is not just about numbers; it's about the lifestyle and vibrant atmosphere that attract visitors. The neighborhood's charm and reputation as a desirable destination make it a magnet for those looking to invest in a thriving market.
Investors are keen on La Barra, not just for its current returns but for its potential growth. The combination of high rental yields, increasing property values, and a steady stream of tourists makes it an attractive proposition.
Sources: The Rio Times, Global Property Guide
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6) Rivera is attracting Brazilian investors with its border location and favorable exchange rates
Rivera is catching the eye of Brazilian investors because of its prime spot on the Uruguay-Brazil border.
With its location, Rivera is a hub for cross-border trade and investment, making it a hot spot for business. The city benefits from the strong economic ties between Uruguay and Brazil, which have been solid for years.
Another big draw is the favorable exchange rates. The Brazilian real has dipped, making investments in Rivera's real estate and businesses more appealing and affordable for Brazilians.
Uruguay sweetens the deal with government incentives like tax breaks and easier processes for foreign investors, making it simpler for Brazilians to set up shop in Rivera.
Infrastructure projects are also in the works, like upgrading the Rivera airport and building a bridge over the Yaguarón River, which will boost connectivity and attract even more investment.
These developments are set to make Rivera an even more attractive destination for Brazilian investors, leveraging its strategic location and economic perks.
Sources: Santander Trade, Global Edge, MercoPress, America Economia
7) Carrasco in Montevideo is booming with luxury homes and its proximity to international schools
The Carrasco neighborhood in Montevideo is a hot market thanks to its luxury homes and proximity to international schools.
In recent years, the average price of luxury homes in Carrasco has risen, and experts predict this trend will continue. This is largely due to a limited supply of homes and a growing demand for prime properties. Families are flocking to Carrasco, drawn by its top-rated international schools like The British Schools and the Uruguayan American School, which offer high-quality education for their children.
Safety is another big draw. Carrasco is known for its low crime rates, making it a safe and desirable place to live. The neighborhood's appeal is further boosted by the presence of multinational companies and diplomatic missions, turning it into a hub for both business and residential activities.
Real estate market reports consistently highlight Carrasco as a desirable area with high occupancy rates. The combination of luxury homes, excellent schools, and a safe environment makes it a top choice for families and professionals alike.
With its unique blend of amenities and opportunities, Carrasco continues to attract those looking for a premium lifestyle. The neighborhood's charm and strategic location make it a standout choice for anyone considering a move to Montevideo.
Sources: Global Property Guide, Gateway to South America News Blog
8) Ciudad Vieja in Montevideo is reviving with historic buildings turning into trendy lofts and offices
The neighborhood of Ciudad Vieja in Montevideo is buzzing with a fresh vibe, thanks to its historic buildings being transformed into trendy lofts and offices.
What's driving this change? Well, for starters, property values have been climbing due to a high demand for housing and a limited supply. This surge is partly because of a shortage of housing construction permits and a boost in tourism. Plus, expatriates are showing interest, and the government is pushing urban renewal and infrastructure improvements.
Investors are pouring money into these historic gems, turning them into chic living and working spaces. Take the "Amplio apartamento en emblemático Edificio Art-decó" for instance—it's a hot property, drawing both investors and new residents with its competitive pricing. The buzz around these real estate listings is a clear sign of the area's growing appeal.
Media and word-of-mouth are also fueling Ciudad Vieja's transformation. Local real estate agencies are reporting a spike in demand for properties here, and social media is abuzz with posts about the neighborhood's new hotspots. New cafes, restaurants, and cultural venues are popping up, adding to the area's charm and pulling in more visitors.
With all these changes, Ciudad Vieja is becoming a magnet for both locals and tourists. The neighborhood's revival is not just about real estate; it's about creating a vibrant community where people want to live, work, and play. The influx of new businesses and residents is breathing new life into the area, making it a lively and attractive place to be.
Sources: Action Plan – Montevideo, Uruguay, 2023 – 2025, Our Properties portfolio – Montevideo – Casco Antiguo Propiedades, A day in Ciudad Vieja Uruguay & Visiting the Andes Crash Museum
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.
9) Atlántida is gaining popularity among retirees for its affordable coastal living
Atlántida is quickly becoming a favorite spot for retirees seeking affordable coastal living.
Compared to pricier places like Punta del Este, Atlántida offers much lower property prices. Imagine snagging a one-bedroom apartment just outside the center for about $22,247.10 USD, or a spacious three-bedroom in the heart of the city for around $55,617.74 USD. This makes it an attractive option for those looking to stretch their retirement savings.
Part of the charming Costa de Oro, Atlántida is known for its peaceful and laid-back vibe, which is a big draw for retirees. The area is a magnet for expats, thanks to the ease of obtaining residency and even a second passport. During the summer, the town buzzes with over 19,000 visitors, highlighting its appeal not just to retirees but also to tourists.
For those considering an investment, Atlántida offers a promising opportunity. The gross rental yield is around 8.10% in the city center and 7.81% outside, making it a smart choice for retirees interested in real estate. The town's serene, crescent-shaped cove, sandy beach, and seaside park create an idyllic backdrop for a relaxed lifestyle.
Living in Atlántida means enjoying a slower pace of life, where the community is tight-knit and welcoming. The town's charm lies in its simplicity, offering a perfect blend of tranquility and convenience. It's a place where you can enjoy the best of both worlds: the peace of a small town and the amenities of a larger city nearby.
Whether you're looking to retire or invest, Atlántida provides a unique opportunity to enjoy coastal living without breaking the bank. The town's growing popularity among retirees is a testament to its appeal, offering a lifestyle that balances affordability with quality of life.
Sources: Live and Invest Overseas, Numbeo
10) Punta Carretas in Montevideo is thriving with its upscale shopping and dining, driving up property values
Punta Carretas in Montevideo is a hot spot for those seeking a blend of luxury and lifestyle.
Once a prison, the Punta Carretas Shopping mall is now a bustling hub with high-end stores and increased foot traffic. This transformation has made it a favorite meeting place for locals and tourists alike.
The neighborhood's dining scene is equally impressive, featuring numerous upscale restaurants and cafes that enhance its luxurious vibe. These dining options not only attract food lovers but also add to the area's overall appeal.
Real estate in Punta Carretas is in high demand, offering good value for money compared to other upscale neighborhoods. This makes it an attractive option for potential buyers looking for a mix of luxury and affordability.
International brands like H&M and Kiabi have set up shop here, boosting the area's luxury status and drawing in both local and international buyers. This influx of global brands adds a cosmopolitan flair to the neighborhood.
With its upscale shopping and dining options, Punta Carretas continues to thrive as a desirable location for property investment.
Sources: Overseas Property Alert, Uruguay XXI
11) Colonia del Sacramento is gaining interest for its UNESCO World Heritage status and potential for property appreciation
Colonia del Sacramento is a magnet for investors because of its UNESCO World Heritage status.
This prestigious recognition has made the city a hot spot, attracting both local and international buyers who are captivated by its unique mix of Portuguese, Spanish, and post-colonial architecture. The city's charm is undeniable, and it's not just about the buildings; it's about the stories they tell and the history they hold.
In recent years, property prices in Colonia del Sacramento have been climbing, reflecting the growing interest in the area. The market is buzzing with activity, and the residential sector is a major player in this upward trend. Investors are seeing the potential for significant returns, making it an attractive option for those looking to capitalize on property appreciation.
International buyers, especially from the US, Canada, and nearby countries, are flocking to Colonia del Sacramento. They're not just drawn by the city's rich history but also by the success stories of others who have invested here. The positive returns reported by previous investors are a testament to the city's potential.
Colonia del Sacramento's historic allure and cultural significance make it a unique investment opportunity. The city's blend of old-world charm and modern potential is a rare find, and savvy investors are taking notice. The UNESCO status adds an extra layer of appeal, ensuring that the city remains a desirable destination for years to come.
Sources: Real Estate Trends in Uruguay, Best New Developments in Uruguay, Exploring Uruguay's UNESCO-listed Colonia del Sacramento
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12) Piriápolis is gaining interest for its affordable beachfront properties compared to other coastal areas
Piriápolis is becoming a hot spot for property buyers due to its affordable beachfront options.
Compared to the glitzy Punta del Este, property prices in Piriápolis are significantly lower, making it a budget-friendly choice for those dreaming of coastal living. Imagine paying $4,000 per square meter in Punta del Este, while in Piriápolis, you get a much better deal. This price difference is a game-changer for many potential buyers.
Real estate agents are buzzing about the uptick in interest and sales in Piriápolis. Buyers are discovering they can stretch their dollars further here. For example, a cozy two-bedroom unit might set you back around $210,000, which is quite reasonable compared to other coastal towns. This affordability is a major draw for those looking to invest in a seaside retreat.
The media is catching on too, painting Piriápolis as a charming, retro-style destination that's winning hearts. Its 1950s vibe is attracting Uruguayans, Argentines, and expats alike, all eager to experience its unique charm. The town's potential for property appreciation adds to its allure, making it a smart choice for investors.
Locals and newcomers alike are finding Piriápolis to be a hidden gem. The town offers a laid-back lifestyle with the promise of future growth, which is appealing to those looking to settle down by the sea. The combination of affordability and charm is hard to resist.
As more people discover Piriápolis, the town is poised for a bright future. Its growing popularity is a testament to its appeal, and those who invest now might find themselves ahead of the curve.
Sources: CEIC Data, Overseas Property Alert
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.