Montevideo real estate offers something rare in South America: a capital city with stable prices in dollars, steady rental demand and a high quality of life.
Home to almost half of Uruguay’s population, Montevideo is where most foreign families settle and where most rental investors buy. Its 20-kilometre Rambla along the River Plate links the neighbourhoods international buyers prefer.
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Montevideo property prices in 2026
Recorded sales in Montevideo averaged about US$2,410 per built square metre in the year to April 2026, and about US$2,477 in the first half of 2026, according to the national housing agency. Listing prices in the coastal neighbourhoods are higher: Pocitos, Punta Carretas, Carrasco and Puerto del Buceo commonly sit above US$3,200 per square metre, with Pocitos listings around US$3,300–3,700, according to 2026 market analyses.
The best neighbourhoods to buy in Montevideo
Pocitos
The most popular address for apartments: beach, Rambla, cafés and everything within walking distance. High liquidity — easy to rent and resell.
Punta Carretas
Quieter and more exclusive, around the golf club and lighthouse, with some of the city’s most expensive apartments.
Carrasco
Houses with gardens, international schools and the airport next door — the first choice for families. Prime homes in Carrasco Sur exceed US$1 million.
Punta Gorda and Malvín
Residential, leafy and close to the water, between Pocitos and Carrasco; good value for families who want a house near the sea.
Ciudad Vieja, Centro and Cordón
The historic and central districts, with lower entry prices and many new buildings under the Vivienda Promovida regime — favoured by rental investors.
Rental yields in Montevideo
Montevideo is Uruguay’s best market for rental income. A 2026 survey cited by iProfesional estimated a gross yield of about 5.1% and a net yield of about 3.3% in Pocitos. Central neighbourhoods offer higher gross yields — around 6.8% in Tres Cruces, 6.4% in Centro and 5.9% in Cordón in April 2026 — with lower prices and more rotation.
Vivienda Promovida: tax-advantaged new apartments
Under Law 18.795 on promoted housing, new projects in designated areas receive tax exemptions — including exemption from transfer tax on the first sale, VAT on the first sale, wealth tax and taxes on rental income for up to ten years. These units are popular with foreign investors seeking net returns; check the specific exemptions of each project with your escribano.
Buying to live in Montevideo
For families relocating, Montevideo offers schools, hospitals, culture and year-round life, with the beach on the doorstep. Compare it with the coast in Montevideo vs Punta del Este, see where expats live and budget with the cost of living in Uruguay.
Montevideo real estate: key takeaways
Montevideo real estate averages around US$2,400–2,500 per square metre in recorded sales, with coastal neighbourhoods above US$3,200. Pocitos and Punta Carretas suit apartment buyers, Carrasco suits families, and central districts with Vivienda Promovida suit rental investors seeking gross yields of around 6–7%. Prices are in dollars, transaction costs run around 6–9%, and an independent escribano protects your purchase.
Frequently asked questions
Is Montevideo a good place to invest in real estate?
For steady rental income in dollars and capital preservation, Montevideo is Uruguay’s strongest market. Do not expect fast price growth.
How much does an apartment in Montevideo cost?
From around US$120,000 for a small unit in central areas to US$200,000–350,000 for a two-bedroom flat in Pocitos, and much more for sea views. See Uruguay property prices.
Can foreigners buy in Montevideo?
Yes, with the same rights as citizens — see how to buy as a foreigner.
Related reading
- Uruguay real estate: the complete guide
- Investing in Uruguay
- Where do expats live in Uruguay?
- Cost of living in Uruguay