Best Neighborhoods to Invest in Montevideo — July 2026
INGAR · · Rankings
Top 10 neighborhoods with the highest returns
Returns in Montevideo vary significantly by neighborhood. The ten neighborhoods with the highest gross yield offer returns ranging between 11.8% and 9.0%, well above the market average. Topping the ranking is Piedras Blancas with 11.8% gross yield, followed closely by Belvedere (11.7%) and Cerro (11.6%). These 3 neighborhoods located in consolidated areas of eastern Montevideo maintain an exceptional price-to-rent ratio.
What sets these neighborhoods apart is that they combine accessible prices (between USD 915/m² and USD 1,026/m²) with solid monthly rents (USD 375 to USD 475). This generates a price-to-rent ratio of 8 to 9 years, meaning the property essentially pays for itself in just over a decade.
| Neighborhood | Gross Yield | Net Yield | Price-to-Rent | Monthly Rent | USD/m² | Months of Stock | Supply |
|---|---|---|---|---|---|---|---|
| Piedras Blancas | 11.8% | 8.8% | 8 | USD 375 | USD 915/m² | 2.0 | Low |
| Belvedere | 11.7% | 8.8% | 9 | USD 475 | USD 1,026/m² | 2.4 | Low |
| Cerro | 11.6% | 8.7% | 9 | USD 435 | USD 929/m² | 2.6 | Low |
| Colón | 11.0% | 8.2% | 9 | USD 431 | USD 985/m² | 2.3 | Medium |
| Aires Puros | 10.2% | 7.7% | 10 | USD 533 | USD 1,406/m² | 1.3 | Low |
| La Figurita | 9.6% | 7.2% | 10 | USD 649 | USD 1,880/m² | 1.9 | Low |
| Lezica | 9.5% | 7.2% | 10 | USD 502 | USD 1,258/m² | 4.5 | Low |
| Jardines del Hipódromo | 9.2% | 6.9% | 11 | USD 375 | USD 1,176/m² | N/A | Medium |
| Nuevo París | 9.1% | 6.8% | 11 | USD 435 | USD 920/m² | 2.4 | Low |
| Malvín Norte | 9.0% | 6.7% | 11 | USD 524 | USD 1,205/m² | 1.9 | Medium |
From fifth place on, Aires Puros stands out with a particular profile: a higher price (USD 1,406/m²) but a more robust rent (USD 533 per month). La Figurita maintains a strong return of 9.6%, though with higher values in the supply market. Lezica rounds out the top 10 with 9.5%, but shows 4.5 months of stock, indicating slower turnover.
What do these yields mean?
The gross yield is the annual rent divided by the property price. If a home worth USD 100,000 rents for USD 900 per month (USD 10,800 per year), the gross yield is 10.8%. It's an attractive number on paper, but it's not what ends up in your pocket.
The net yield deducts expenses: common fees (maintenance, shared services), municipal taxes, vacancy (months without a tenant), and repairs. In Montevideo, these expenses amount to around 20-30% of rent. That's why you see net yields 3-4 percentage points below the gross. A net yield of 8.8% (as in Piedras Blancas) is exceptional; the norm in expensive neighborhoods is around 4-5%.
The price-to-rent ratio tells you how many years it takes to recover the investment through rent (ignoring expenses and other factors). A ratio of 8 years means that 8 years of rent payments cover the property. A ratio of 20 years suggests the investment is more speculative (betting on appreciation) than income-driven.
Neighborhoods with the best risk-return ratio
Not all high yields are equal. Aires Puros stands out with just 1.3 months of stock: supply sells quickly, meaning that if you need to exit the investment, you'll find a buyer within weeks. It combines 10.2% gross yield with excellent liquidity.
Malvín Norte offers 9.0% yield with just 1.9 months of stock. It's a solid option: double-digit returns in terms of price-to-rent (11 years) and a clear market exit.
Cerrito presents 8.9% net yield with 1.7 months of stock. Similar profile: solid return, fast supply absorption. At around USD 1,215/m², it offers an interesting balance between entry price and rent.
Sayago deserves attention: 6.8% yield, accessible price (USD 1,774/m²), and just 1.5 months of stock. It's not the highest yield, but liquidity is rare in mid-to-low coastal neighborhoods.
At the other extreme, Lezica (9.5% yield) has 4.5 months of stock — almost double what's ideal — suggesting that although profitability is attractive, rental or purchase demand does not absorb supply quickly.
Where is it NOT a good idea to invest today?
Neighborhoods with yields below 5.5% generate returns that barely outpace inflation and time-deposit rates. Pocitos (5.4%), Carrasco (5.6%), Buceo (5.5%), and Parque Batlle (5.5%) are premium areas where the price per square meter is high (USD 3,000-3,800) but rent does not keep pace proportionally. These are investments driven more by long-term real estate appreciation than by cash flow.
Parque Rodó closes the table with 4.6% net yield and a price-to-rent ratio of 22 years. Investing there requires conviction in appreciation; rental income is marginal.
Also avoid neighborhoods with very high stock: Capurro (4.4 months) and Paso Molino (3.8 months) show that supply moves slowly. If you need liquidity within 1-2 years, these are not ideal.
Tres Cruces and La Blanqueada have high supply (3.1 and 3.5 months respectively) combined with low yields (6.5% and 6.0%). They are well-located areas but relatively oversupplied.
Conclusion
To invest in Montevideo in July 2026, the right profile depends on your goal:
If you're looking for strong cash flow: Target Piedras Blancas, Belvedere, Cerro, and Colón. Yields of 11-10% are rare; these neighborhoods offer that combination of accessible price and consistent rent. You recover your investment in 8-9 years without speculating.
If you want a balance of return and liquidity: Aires Puros, Malvín Norte, Cerrito, and Sayago. Yields of 9-6.8% with fast supply turnover. Properties that sell in 1.3-1.9 months.
If you're speculating on long-term appreciation: Pocitos, Carrasco, Buceo. Low yields but areas with structural long-term demand. Requires patient capital.
Most Uruguayan rental investors target the middle segment: yields of 8-10% with prices between USD 1,000-1,500/m². In that range, the eastern neighborhoods (Piedras Blancas, Belvedere, Cerro, Malvín Norte) offer the best combination.
To dive deeper into strategies by property type, check out our investment guide by number of bedrooms. And to compare general values by area, see our neighborhood price ranking.
Frequently asked questions
How often is this data updated?
It is recalculated every month based on the current real estate supply in Montevideo, so it reflects the state of the market for the current month.
Where do these prices come from?
From INGAR's own survey of public sale listings in the Montevideo market, not from closed transactions: these are asking prices, a gauge of what is being requested in the market today.
Want to invest with data, not intuition? See how to invest in Uruguay, get an online property valuation, or message us on WhatsApp.
This data is part of the INGAR Index, the monthly Montevideo real estate market index, with a data sheet for each neighborhood and a public methodology.
Updated: July 2026. Source: INGAR analysis based on the current real estate supply in Montevideo.