House, Apartment, Studio or Build: How to Decide in Uruguay
INGAR · · Buying
Short answer: it depends on whether you're buying to live in the property or to invest, how long you plan to hold it, and how much maintenance and hands-on management you're willing to take on.
But before answering, the question needs to be taken apart, because house, apartment, building and studio are not four equivalent options:
- House or apartment describes the type of property.
- Building or buying something already finished describes how you get there.
- Studio describes size — and it's almost always an apartment, too.
These are three separate decisions, and it pays to make them in order:
| Decision | Options |
|---|---|
| How to acquire | Buy built or build |
| Which ownership regime | Standalone house or condominium (propiedad horizontal) |
| What size | Studio, one, two or more bedrooms |
First: the minimum floor area the law requires
Article 18 of Ley 13.728 sets these minimums for habitable floor area:
| Layout | Minimum habitable area |
|---|---|
| Studio | 25 m² |
| One bedroom | 35 m² |
| Two bedrooms | 50 m² |
| Three bedrooms | 65 m² |
| Each additional bedroom | +15 m² |
The same law also requires, among other conditions: a bathroom and adequate space for kitchen, dining and living areas; waterproof roofing with a minimum level of thermal insulation; exterior walls protected against damp; enough natural light in bedrooms, living and dining rooms and the kitchen; and ventilation sufficient to keep the home sanitary.
Careful: the square meters in the listing don't settle the legal question
"25 m² advertised" and "25 m² of habitable area" are not the same thing. A listing may quote private area, built area, total area, or roll in terraces and common spaces.
In Montevideo, departmental regulations go further: they define how areas are measured, set minimum dimensions room by room and, under certain regimes, require a balcony, terrace, patio or service area (articles D.3310 and D.4482).
Before buying a very small unit, have your escribano (the notary who handles property transfers in Uruguay) and — where relevant — an architect review the approved construction drawings, the building permit and municipal records, the condominium plan, the unit's authorized use, and the stated area along with the criteria used to measure it.
A unit under 25 m² deserves extra scrutiny. But its legal standing isn't determined by reading the listing — it's determined by the paperwork. We go deeper into this in is that studio legal?.
House or apartment: the real difference is management
| Aspect | Standalone house | Apartment |
|---|---|---|
| Outdoor space | More common | Depends on the unit |
| Common charges | Usually none | Yes |
| Exterior maintenance | All yours | Shared among co-owners |
| Interior repairs | Yours | Yours |
| Room to renovate | Greater, within the building code | Limited by structure and co-ownership rules |
| Security while you're away | Whatever you put in place | May include controlled access |
| Shared services | Uncommon | Elevator, doorman, heating and more |
| Risk of an unexpected bill | Your own repairs | Work the co-ownership votes through |
Two wrinkles break that neat rule. A house can be held under propiedad horizontal (Uruguay's condominium regime) or sit inside a complex with shared services — in which case it pays common charges too. And buying an apartment doesn't get you out of maintenance: Ley 10.751 draws a line between common elements, whose costs are split, and interior repairs, which each unit covers on its own.
At bottom, the choice is about who manages the problems: you alone, or you plus an owners' meeting.
Compare monthly cost, not sticker price
If you're financing the purchase
``text Mortgage payment + common charges + (Contribución Inmobiliaria and Impuesto de Primaria property taxes) ÷ 12 + insurance + estimated maintenance = monthly cost of the home ``
If you're renting
``text Rent + ordinary common charges + utilities and services = monthly cost of renting ``
An illustrative example:
| Two-bedroom apartment | Standalone two-bedroom house | |
|---|---|---|
| Rent or mortgage payment | USD 650 | USD 780 |
| Common charges | USD 180 | USD 0 |
| Total before other costs | USD 830 | USD 780 |
This doesn't prove a house is cheaper. A house needs its own reserve for the roof, exterior paint, damp, systems and the yard, and that reserve shows up on no table at all until the day something breaks. What the example does show is why you can't compare two properties by their advertised price.
What to check on common charges
Asking what last month's bill came to isn't enough. Ask for:
- A month-by-month history covering at least 12 months.
- The status of the reserve fund.
- Any arrears on the unit.
- Recent minutes from the co-ownership.
- Major work approved or under consideration.
- Headcount of staff and services under contract.
- How heating, water and other utilities are billed.
- The co-ownership bylaws and how costs are allocated.
A small building can carry high charges simply because it splits fixed costs among few units — but that's no rule: a large building with a full-time doorman, several elevators, central heating and amenities can run considerably more.
If work has already been approved, the contract has to spell out who pays for what: seller or buyer. It's one of the most common post-closing arguments, and one of the most avoidable. More on this in common charges: what they cover and how they're calculated.
What about the studio?
It takes less capital than larger units in the same building, and there's demand from students, people living alone and anyone looking for short-term housing.
None of that guarantees a better return.
In its favor: a lower entry price, limited interior maintenance, broad demand near universities, offices or transit.
Against it: common charges that run high relative to the rent, less comfort for long stays, higher tenant turnover in some segments, a thinner resale market, and financing or compliance headaches when the paperwork isn't clean.
Here's the number that frames the whole discussion: a USD 150 common charge is 33% of a USD 450 rent. In small units, the relationship between rent, common charges and purchase price matters more than in any other layout.
Buying built or building from scratch
Building can deliver a home made to measure, but you can't compare it to an existing property by looking at construction costs alone.
The full budget includes:
- Buying the lot and having its title reviewed.
- Survey and soil testing where required.
- Design, construction supervision and professional fees.
- Permits and paperwork.
- Construction-related payroll contributions.
- Demolition or site preparation.
- Materials and labor.
- Sewer, water and electrical hookups.
- Fencing and exterior finishes.
- Interest and financing costs.
- Rent for the entire duration of the build.
- A contingency fund.
The two big risks are cost overruns and delays, and the second is the sneakier of the two: a project can come in on budget and still end up costing more, because you paid six extra months of rent.
Building makes the most sense when you already have a suitable lot, financial room for surprises, and no urgency to move in.
Returns: the neighborhood matters, but it isn't everything
``text Gross yield = annual rent ÷ purchase price × 100 ``
According to the INGAR Index for July 2026, the median listed gross yield for apartments in Montevideo is 6,0 % a year. A few examples from the same survey:
| Neighborhood | Median asking price per m² | Estimated gross yield |
|---|---|---|
| Golf | USD 4.070 | 5,7 % |
| Villa Biarritz | USD 3.895 | 4,9 % |
| Punta Carretas | USD 3.802 | 5,4 % |
| Belvedere | USD 1.449 | 11,3 % |
| Aires Puros | USD 1.308 | 11,0 % |
| Cerro | USD 967 | 11,6 % |
These are estimates based on asking prices, not closed transactions. Segments with too small a sample aren't published.
A high yield may simply be pricing in risks the gross formula doesn't reveal: vacancy and turnover, collection and management costs, deferred maintenance, weaker resale liquidity, differences in condition and build quality, and greater tenant risk.
To compare two investments fairly, use properties of similar layout, condition and size — and work out the net return as well.
From gross yield to money in your pocket
``text Rent actually collected − vacancy − management − maintenance − Contribución Inmobiliaria − Impuesto de Primaria − insurance − income tax = net income ``
Under IRPF (Uruguay's personal income tax), the general rate is 12 % on computable income, after allowable expenses and bad debts — among them management fees, certain professional fees, and the Contribución Inmobiliaria and Impuesto de Primaria property taxes.
Withholdings or advance payments of 10,5 % on gross income can, under certain conditions, be treated as final. There's also an exemption for owners who meet all of DGI's (the national tax authority) requirements at once.
The practical takeaway: don't reflexively subtract 12 % from gross rent. The treatment depends on the owner and on how the tax is filed (DGI — income from real-estate capital). The full calculation is in is real estate worth investing in?.
When each option fits
Standalone house. If you want outdoor space, privacy and freedom of use, and you're fine handling repairs and security yourself. Pay particular attention to the roof, damp, plumbing, wiring, sewer connections, fencing and the permit status of any additions.
Apartment. If location, security while you're away and shared structural maintenance rank highest for you. Review the common charges, meeting minutes, reserve fund, bylaws and any pending work.
Studio. As a first home or a modest-budget investment, when the location generates real demand. Don't pick one just because the total price is low: compare achievable rent, common charges, turnover, authorized floor area and the resale market.
Building. If you have time, a financial cushion and a need that existing inventory doesn't meet. Before you buy the lot, confirm that zoning rules allow the project you have in mind, and build a full budget rather than a cost per square meter.
Closing costs: there's no universal percentage
| Item | How it's calculated |
|---|---|
| Buyer's ITP (property transfer tax) | 2 % of the updated Catastro assessed value |
| Notary fees | Reference schedule of 3 % of the base value |
| VAT and the Caja Notarial contribution | Added on top of the fee |
| Broker's commission | As agreed; at 3 % + VAT, it works out to 3,66 % |
| Certificates, registry filings and stamps | Depends on the transaction |
| Mortgage and bank charges | Depends on the bank and the loan |
The line item almost every back-of-the-envelope budget forgets is the Caja Notarial contribution (the notaries' pension fund) plus VAT, both added on top of the escribano's fee — which is why the real notarial cost ends up higher than the "reference" percentage people usually quote. Fee schedules and the contribution are updated periodically, so ask your escribano for the current figure when your transaction is underway. Add up ITP, notary, commission and registry filings and closing costs typically land around 9 % of the price.
ITP, by contrast, usually comes to less than 2 % of the price, because it's calculated on the updated Catastro assessed value, which is normally below market.
As a rule of thumb, an all-cash purchase with a broker's commission calls for an extra budget of roughly 9 %; with financing, somewhere between 10 % and 13 %. Before you hand over a deposit, ask the escribano for an estimated settlement statement and the bank for one of its own. Full breakdown in what costs come with buying a property.
Five questions that clarify the decision
- Are you buying to live in it or to earn income?
- How many years do you plan to hold the property?
- How much maintenance can you personally manage?
- Do you need to move in soon?
- What's the total monthly cost — not the price?
If you're buying to live there, day-to-day comfort easily justifies a lower return or a higher cost. If you're investing, the decision has to rest on realistic rent, vacancy, expenses, the property's condition and how easily it resells. Blending the two criteria is the most common way to end up with a property that doesn't quite work for either purpose.
How we analyze it at INGAR
We start with the intended use and the time horizon of the purchase. Then we compare pricing and history for similar properties, past common charges, the taxes tied to the padrón (the property's land-registry number), construction condition and likely maintenance, achievable rent, gross and net returns, documentation and occupancy status.
The answer never comes from picking "house" or "studio" in the abstract. It comes from working out which property best solves your specific need without hiding costs.
Once you're clear on the layout, the closing-cost calculator gives you the total outlay for each option, and our current listings let you compare what the market offers today in each format.
Frequently asked questions
What minimum floor area does Uruguayan law require?
Article 18 of Ley 13.728 sets the minimums for habitable area: 25 m² for a studio, 35 m² for a one-bedroom, 50 m² for a two-bedroom, and larger figures for bigger layouts.
Is a house or an apartment the better buy?
The real difference is management. A house usually offers more outdoor space and normally carries no common charges, but all the exterior maintenance falls to you. In an apartment, maintenance is shared among the co-owners.
What should I check on common charges before buying?
Asking what last month's bill came to isn't enough. Ask for a month-by-month history covering at least twelve months, the status of the reserve fund, any arrears on the unit, recent minutes from the co-ownership and the work already approved.
Is buying a studio to rent out a good idea?
It takes less capital than larger units in the same building and there's demand from students and people living alone, but that doesn't guarantee a better return.
What's the gross yield on an apartment in Montevideo?
According to the INGAR Index for July 2026, the median listed gross yield for apartments in Montevideo is 6,0 % a year. Getting from gross yield to money in your pocket means deducting vacancy, management, maintenance, property taxes, insurance and income tax.
How much do closing costs add up to?
There's no universal percentage. The buyer's ITP is 2 % of the updated Catastro assessed value, and notary fees start from a reference schedule of 3 % of the base value, plus VAT and the Caja Notarial contribution.
Keep reading
- Is that studio legal? The minimum square meters the law sets
- Is real estate worth investing in?
- Studio vs. two-bedroom as an investment
- Common charges: what they cover and how they're calculated
- What to keep in mind when buying pre-construction
- Propiedad horizontal: rights and obligations
Sources
- Ley 13.728, article 18 — minimum housing standards
- Montevideo regulations, article D.3310 · article D.4482
- Ley 10.751 — Propiedad horizontal
- DGI — IRPF on income from real-estate capital
- DGI — Property Transfer Tax (ITP)
- Asociación de Escribanos del Uruguay — Official fee schedule
- Caja Notarial — Semiannual fee schedule update
- INGAR Index — July 2026
General information reviewed on August 1, 2026. INGAR Index figures are estimates based on asking prices: they are neither an appraisal nor a promise of returns. Legal, tax and construction circumstances are analyzed property by property.