Montevideo Real Estate Market 2026: Dashboard and Key Indicators

INGAR · · Investment

Montevideo Real Estate Market 2026: Dashboard and Key Indicators

The Montevideo Real Estate Market in 2026: A Data-Driven Overview

This article is a control dashboard for investors and buyers who want to understand the Montevideo real estate market with numbers, not buzzwords. The premise is simple: good decisions come from consistently measured indicators, not from headlines or gut feelings.

If you are just starting out and need background context, we recommend these articles:

What follows is a walkthrough of the hard data on the market: transaction volume, prices, supply, demand, credit, and construction. All measurable, all verifiable.

1) Transaction Volume: USD 2.7 Billion and 18,000+ Operations

The starting point for any market analysis is knowing how much moves. In Uruguay, the most reliable source for estimating total real estate transaction volume is the revenue from the Impuesto a las Transmisiones Patrimoniales (ITP), which levies 2% on the buyer and another 2% on the seller.

According to data from the Dirección General Impositiva (DGI), the ITP collected $4,216 million (approximately USD 108 million) between January and December 2025, with a nominal year-on-year variation of +10.7%. If the total tax represents 4% of the value of operations, the floor of transacted volume was USD 2.7 billion in 2025. We say "floor" because the tax base is the cadastral value, which is usually below the actual closing price.

In quantity, the market surpassed 18,000 annual sales, with monthly peaks reaching 4,600 transactions in specific months (June 2025 recorded a +11% month-on-month increase). The median closing price was around USD 80,000.

What it means for you: the Uruguayan market is active. We are not talking about a stalled market or a bubble. It is a sustained volume reflecting real transactions, not pure speculation. ITP growth of +10.7% year-on-year confirms that more money is moving than the previous year.

2) Stock and Supply: 60,000 Active Listings and an Absorption Rate of 1 in 40

Published supply across the main portals exceeds 60,000 properties nationwide. InfoCasas, the leading portal, reported 205,807 unique properties listed during 2025, with 12.5 million annual visits and 587,000 monthly active users.

However, the figure that matters is not how many properties are listed but how many sell. In Montevideo approximately 1,500 sales are completed monthly. This gives an absorption rate of roughly 1 in every 40 listed properties per month. In other words: if you list today, you are statistically competing with 39 similar properties for each active buyer.

The average time to sell is around 3 months for well-listed properties priced in line with the market. In rentals, the picture is very different: a property is placed on average in 27 days, reflecting a rental demand that is far more agile than the purchase market.

What it means for you: the market is liquid but not fast. There is a lot of supply, which gives buyers negotiating power. If you are selling, your property needs to be well positioned in price and presentation to avoid sitting on a portal for months. If you are buying, you have room to negotiate: the average gap between list price and closing price is between 5% and 10%.

3) Prices: Stability in USD with a Slight Downward Pressure

Price trends in Montevideo show a picture of stability with a slight downward tendency in USD. According to data from Niddo (based on the INE Real Estate Activity Index), prices recorded a year-on-year decline of between 1% and 4% in USD, depending on the segment and zone. Nationwide, the median price fell from USD 74,200 to USD 72,400 over a twelve-month period.

In Montevideo the decline was more pronounced (~3.9%), while in the interior prices rose (from USD 50,000 to USD 57,000 in median), reflecting a gradual decentralization of demand.

Price per square meter in Montevideo (Q1 2026)

Zone Average USD/m² Profile
Coastal corridor (Pocitos, Punta Carretas, Buceo) USD 3,500 – 4,700 Premium, high demand
Cordón, Parque Rodó, Tres Cruces USD 2,200 – 2,900 Medium-high, good yield
Promoted housing (general average) USD 2,385 New construction with tax benefits
Periphery and emerging zones USD 900 – 1,500 High yield, higher risk
Montevideo average (apartments) USD 2,900 – 3,330 General reference

The gap between the coastal corridor and the periphery exceeds 380%. Montevideo remains the city with the most expensive price per square meter in Latin America in the apartment segment, which speaks as much to urban quality as to potential overvaluation in certain neighborhoods.

The expectations of users themselves reflect this ambiguity: according to the InfoCasas survey, 35% believe prices will rise in 2026, 29% that they will remain stable, and the rest expect downward adjustments. There is no consensus — which is typical of a market on a plateau.

What it means for you: if you are buying, you are not in a rising-price market. Urgency is not working against you. You can take time to compare, negotiate, and wait for the right opportunity. If you are selling, adjusting your list price to market reality is not "losing money" — it is selling instead of accumulating months of an untouched listing.

4) Demand Profile: Who Is Looking for What, and at What Price

Portal data allows us to reconstruct with reasonable precision what the market is looking for. The 2025 picture (projected to remain stable into 2026) shows the following:

By type of operation

  • 47% rental — almost half of active demand is looking to rent, not buy
  • 41% purchase — buying remains relevant but does not dominate
  • 12% short-term rental — a growing segment driven by tourism and digital nomads

By typology (within purchases)

  • Apartments: 73% of demand (vs. 24% houses)
  • Within apartments: 1 bedroom 42%, 2 bedrooms 27%, studios 23%, 3+ bedrooms 8%

By budget (buyers)

  • 54% looking below USD 150,000
  • 35% between USD 150,000 and USD 300,000
  • Only 9% between USD 300,000 and USD 500,000
  • Barely 1% above USD 500,000

By geography

  • 67% Montevideo
  • 16% Maldonado (including Punta del Este)
  • 14% Canelones (sustained growth, driven by promoted housing)
  • 3% rest of the country

By buyer origin

  • 84% Uruguayan
  • 10% Argentine (concentrated in Punta del Este and Costa de Oro)
  • 6% other (Chile, United States, Brazil)

What it means for you: the most active and competitive segment is 1–2 bedroom apartments below USD 200,000. If you invest in that range, you have guaranteed demand for both sale and rental. If your property is outside that range (larger, more expensive, or in a secondary location), demand shrinks significantly and selling times lengthen.

5) Rental Yield: From 5% Gross to 13% Depending on the Zone

The average gross yield in Montevideo is between 5% and 6% per year. But that figure conceals enormous dispersion by neighborhood:

Zone Annual gross yield Risk profile
Pocitos, Punta Carretas, Carrasco 4% – 5% Low risk, high liquidity, low vacancy
Cordón, La Blanqueada, Parque Rodó 5% – 6% Moderate risk, good student demand
Buceo, Malvín, Unión 5.5% – 7% Moderate risk, growth
La Teja, Villa del Cerro, Brazo Oriental 7% – 9% Higher risk, higher return
Manga, Casabó, Colón, Nuevo París 10% – 13% High risk, potential high vacancy

Net yield (after deducting common expenses, property tax, IRPF on income, vacancy, and maintenance) typically sits between 3.5% and 4% in consolidated zones. For a realistic estimate, subtract 30–40% from gross for operating costs.

The key data point for 2025/2026 is that yields have been rising in peripheral neighborhoods, where purchase prices fell more than rents. In neighborhoods like Manga or Casabó, gross yield reaches 12–13%, albeit with vacancy and deterioration risks that must be assessed case by case.

What it means for you: double-digit yields sound attractive, but they are not comparable with 5% in Pocitos. Vacancy, tenant profile, and resale liquidity are all part of the equation. A good dashboard measures net, not gross. If you want to go deeper, read our article on rental yield by zone.

6) Mortgage Credit: Historically Low Rates, but Limited Access

The Banco Hipotecario del Uruguay (BHU) continues to dominate the mortgage market with about 70% of placements. Current conditions are the most favorable in years:

  • Rate from 3.75% TEA in UI (Indexed Units, adjusted for inflation)
  • Financing of up to 90% of appraised value (100% for BHU savers)
  • Maximum term of 25 years
  • Appraisal cost: 2,500 UI (approximately USD 350)
  • Pre-approval possible before starting the property search

Private banks (BBVA, HSBC, Itaú, Scotiabank) also offer mortgages, generally at slightly higher rates but with approval processes that some find more agile.

However, actual access to credit remains a barrier. The payment-to-income ratio required by banks, combined with Montevideo price levels, means that for the average family a mortgage only reaches properties at the lower end of the market. In a market where 54% of demand is looking below USD 150,000, mortgage credit is relevant but does not define the market: a large portion of transactions close with personal savings or proceeds from the sale of another property.

What it means for you: if you have borrowing capacity, rates are at historic lows and it is worth evaluating financing. But run the numbers with the payment in UI, not in nominal pesos: UI adjusts for inflation, and high inflation can increase your payment in real terms.

7) Construction Pipeline: Record Promoted Housing Activity

The Promoted Housing Law (18.795) continues to be the main driver of new construction in Uruguay. The cumulative figures at the close of 2025 are impressive:

  • 2,110 projects filed since the scheme was created
  • 28,200 completed units
  • 13,000 units under construction
  • 20,700 pending units (5,900 with declaration, 14,800 under study)
  • 326 new projects filed in 2025 alone — all-time record, +32% vs. 2024
  • March 2025 was the month with the most projects filed in the entire history of the scheme: 62

Geographic shift

A relevant change: Montevideo dropped from 65.6% to 53.5% of newly filed projects in the last twelve months, while Canelones rose from 17% to 27.9%. This reflects a real movement of construction toward zones with a better land cost/sale price ratio, especially along Route 8, Ciudad de la Costa, and Montevideo's outskirts.

The average price per square meter in promoted housing is USD 2,385/m² of construction, significantly below the market average in coastal zones (USD 3,500+), which explains its appeal for both end buyers and investors.

Montevideo issues construction permits totaling 500,000 m² annually, ensuring a constant flow of new supply.

What it means for you: promoted housing will keep injecting new supply into the market. This is good for buyers (more options, tax benefits) but generates competition for those selling used properties. If your property competes with new construction in the same zone and price range, you need to be realistic about your list price. For more detail, see areas with the most construction in Montevideo.

8) INE and Official Indicators: The IAI as a Thermometer

The Instituto Nacional de Estadística (INE) publishes the Índice de Actividad Inmobiliaria (IAI) monthly, covering both purchases and rentals. It is the most comprehensive official indicator for the sector.

The most recent data shows:

  • IAI Sales (January 2026): continued activity, with no sharp drops or notable acceleration. The trend since mid-2025 is one of slight deceleration, consistent with a market coming off record volumes.
  • IAI Rentals (November 2025): monthly variation of +0.41%, with an average rental value of $21,109 (Uruguayan pesos). The trend is of sustained increases in pesos, stable in USD.

The IAI has limitations (it does not capture the informal market, there is a publication lag, and the calculation base is not homogeneous across departments), but it remains the reference for measuring the aggregate evolution of the market.

Combined with ITP as a volume proxy, the IAI confirms a market in a maturity phase: no contraction, but no euphoria either. Indicators suggest a 2026 of sustained activity at a similar pace to 2025, with possible downward pressure on USD sale prices if the peso continues to strengthen.

9) The Dashboard: 10 Indicators to Track the Market

If you want to follow the market rigorously, these are the 10 indicators we recommend monitoring, with their sources and suggested frequency:

Indicator How it is measured Current data (Q1 2026) Source Frequency
Market volume ITP collected / 4% ~USD 2.7B/year DGI Quarterly
Number of transactions Registered sales 18,000+/year (~1,500/month in MVD) INE-IAI Monthly
USD/m² by zone and typology Median of comparables USD 2,900 MVD average Portals + comparables Quarterly
Absorption rate Monthly sales / listed stock ~2.5% (1 in 40) Portals + INE Monthly
Time to sell Average days on portal ~90 days (sale), 27 days (rental) InfoCasas, MeLi Monthly
Gross yield Annual rent / sale price 5–6% MVD average Own calculation Semi-annual
Supply stock Active listings on portals 60,000+ nationwide InfoCasas, MeLi Monthly
New construction pipeline VP projects filed 326 in 2025 (record) ANV Quarterly
Mortgage credit BHU rate + placements From 3.75% TEA in UI BHU, BCU Quarterly
Macro context Inflation, exchange rate, policy rate Inflation ~5%, stable exchange rate INE, BCU Monthly

The key is not having a sophisticated dashboard, but being consistent. If you measure the same indicators every quarter, with the same methodology, you will detect trend changes before the headlines do.

10) How to Build Your Own Historical Series

You do not need a data team. A spreadsheet and quarterly discipline are enough. We suggest this minimal structure:

Quarter Zone Typology USD/m² (median) Monthly rent (median) Common expenses (median) Estimated vacancy Context notes
2026-Q1 Cordón 1BR USD 2,500 $28,000 $6,500 3% New VP in zone, BHU lowers rate
2026-Q1 Pocitos 2BR USD 3,600 $42,000 $9,000 2% High demand, stable stock
2026-Q2 ____ ____

Rules to make the series useful:

  1. Always use the same comparable criteria: same zone, same typology, same square meter range.
  2. Separate listings from closings: if you have access to closing prices (for example through a trusted broker), record them separately from list prices.
  3. Save links and screenshots of the most representative comparables each quarter.
  4. Note the context: if a new building opened in the zone that quarter, if a regulation changed, if a relevant macro event occurred. Without context, numbers explain nothing.
  5. Review the series every 4 quarters: one year of data already lets you see real trends, not statistical noise.

11) The Most Active Segments: Where the Opportunity Lies

Crossing demand, price, and absorption data, the segments with the highest activity in 2026 are:

Star segment: 1-bedroom apartment, USD 95,000 – USD 160,000

This is the intersection of the most sought-after typology (42% of searches) and the price range where most buyers are concentrated (54% search below USD 150K). The neighborhoods with the best price/demand equation for this segment are Cordón, La Blanqueada, Tres Cruces, Buceo, and Parque Rodó.

Investor segment: studio, USD 70,000 – USD 110,000

Studios represent 23% of searches and are the preferred product of the investor profile. Gross yield is usually above average because rents are proportionally high relative to purchase price. The risk is vacancy in neighborhoods with oversupply of new promoted housing.

Family segment: 2 bedrooms, USD 150,000 – USD 250,000

27% of demand seeks 2 bedrooms. These have lower turnover but greater tenant stability in rental and better medium-term resale value. Pocitos, Malvín, and Buceo are the reference zones.

Cold segments: houses and properties above USD 300,000

Only 24% of demand looks for houses, and barely 10% of buyers have a budget above USD 300,000. These segments have significantly longer selling times and lower liquidity.

12) Conclusion: A Mature Market That Rewards the Informed

The Montevideo real estate market in 2026 is defined by a paradox: it is active but not urgent. There is volume (USD 2.7 billion annually), there are transactions (18,000+), there is cheap credit (3.75% TEA) and sustained demand. But there are also 60,000 properties competing for attention, prices that are not rising (and even falling slightly in USD), and a new-construction pipeline that keeps injecting supply.

This configures a buyer's market, where those with liquidity and patience can find real opportunities. Negotiating power is on the demand side, especially in the segment of used apartments competing with new promoted housing.

For sellers and investors, the key is differentiation: a well-located, well-maintained property with a market-adjusted price sells within 3 months. An overpriced property in a zone with oversupply can sit for a year without movement.

And for everyone, the key is information. The numbers shared in this article are not secrets — they are public, measurable, and verifiable data. The advantage lies not in having access to the data but in the discipline of measuring them consistently and acting accordingly.

If you need help building your dashboard, evaluating a specific property, or understanding how your investment is positioned within the market context, talk to us. It is what we do every day.

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