Best Neighborhoods to Invest in Montevideo — June 2026

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Top 10 neighborhoods with highest rental yield

If you're evaluating where to invest in Montevideo, gross yield is your initial compass. It shows you what annual percentage of your total investment you recover in the form of rent, before deducting expenses. Here are the 10 neighborhoods offering the highest returns according to the current offer in June 2026.

Neighborhood	Gross Yield	Net Yield	Price-to-Rent	Monthly Rent	USD/m²	DOM	Sample
Rincón del Cerro	8.2%	5.1%	12.2	USD 850	2,100	120	28
La Teja	7.9%	4.8%	12.7	USD 920	2,350	135	35
Sayago	7.5%	4.6%	13.3	USD 780	2,050	118	42
Paso de la Arena	7.2%	4.4%	13.9	USD 920	2,480	128	31
Peñarol	6.9%	4.2%	14.5	USD 850	2,200	142	25
Goes	6.7%	4.1%	14.9	USD 900	2,550	156	18
Brazo Oriental	6.5%	4.0%	15.4	USD 780	2,180	145	22
Cordón	6.2%	3.8%	16.1	USD 1,200	3,650	89	67
Parque Rodó	5.9%	3.6%	16.9	USD 1,350	4,100	76	89
Pocitos	5.2%	3.1%	19.2	USD 1,580	5,200	68	124

Rincón del Cerro leads with a gross yield of 8.2% — this is exceptional in Montevideo. The reason is clear: low purchase prices (USD 2,100/m²) combined with robust monthly rent (USD 850). With just 28 listings in supply and 120 days average sale time, it's a more limited but accessible market for investors seeking pure returns.

La Teja completes the podium with 7.9% gross yield. Similar to Rincón del Cerro, it offers excellent price-to-rent ratio. The 35 listings in supply give you more options to compare, and the DOM of 135 days suggests that selling takes time but is feasible. The monthly rent of USD 920 is solid for this location.

Sayago rounds out the top 3 with 7.5% yield. It's interesting that we have 42 listings in supply here — more liquidity than the previous ones. The price-to-rent of 13.3 years indicates you recover your investment in just over a decade if rent remains stable. DOM of 118 days is favorable.

The following neighborhoods (Paso de la Arena, Peñarol, Goes, and Brazo Oriental) maintain yields between 6.5% and 7.2%. All of them share a characteristic: accessible prices (USD 2,050 to USD 2,550/m²) and consistent rental demand. Here we're in consolidated neighborhoods on Montevideo's west coast, with good infrastructure and stable population.

Cordón marks a shift: it drops to 6.2% yield, but with 67 listings in supply and DOM of just 89 days. It's the first premium neighborhood in the ranking. Here you pay USD 3,650/m² but you get tenants quickly and higher rents (USD 1,200 monthly). For investors who value liquidity over pure returns, Cordón is attractive.

Parque Rodó and Pocitos close out the top 10 with yields of 5.9% and 5.2% respectively. They're luxury neighborhoods with prices between USD 4,100 and USD 5,200/m². The compensation is extreme liquidity: 89 and 124 listings in supply, DOM of 76 and 68 days. If you want to be able to sell quickly, these are your neighborhoods.

What do these yields mean?

Gross yield is monthly rent × 12, divided by total purchase price. For example: if you buy an apartment in Rincón del Cerro for USD 210,000 and rent it for USD 850/month, the gross yield is (850 × 12) / 210,000 = 8.2%. It's what you earn before any expenses.

Net yield subtracts expenses: property taxes (IVGI, around 0.3-0.6% annually), common expenses, maintenance, insurance, and a provision for vacancy (months without a tenant). In Montevideo, these deductions range between 35% and 50% of the gross, depending on the neighborhood and property type. A net yield of 3-4% is good; 4-5% is very good.

Price-to-Rent indicates how many years it takes to recover your investment through gross rent alone. A ratio of 12.2 years (Rincón del Cerro) is excellent; one of 19.2 years (Pocitos) is more conservative. This metric helps you compare neighborhoods without confusing currencies.

Neighborhoods with the best risk-return balance

High returns aren't everything. You need to be able to sell when you want and find a tenant quickly. Here's the balance:

• Sayago (7.5% yield, DOM 118, 42 listings): The best balance. Exceptional returns with decent stock. If you need to exit quickly, you have options.
• Cordón (6.2% yield, DOM 89, 67 listings): You drop 1.3 percentage points in returns but you sell in 3 months. For less patient investors, it's worth it.
• Parque Rodó (5.9% yield, DOM 76, 89 listings): If you value being able to unwind the investment in 2.5 months and don't mind 5.9%, this is your zone.
• Paso de la Arena (7.2% yield, DOM 128, 31 listings): Solid returns but limited stock. Good if you already have the apartment identified.

Avoid places with very high DOM and few listings. Goes (156 days, 18 listings) and Brazo Oriental (145 days, 22 listings) are profitable but illiquid — if you need cash in 6 months, you're going to struggle.

Where should you NOT invest today?

There are sectors of Montevideo with low yields that don't justify the risk:

• Yields below 4.5% net: You're earning less than a dollar fixed-term deposit. It only makes sense if you're banking on m² appreciation (which is more speculative than investment).
• DOM above 180 days: That's a red flag. If it takes more than 6 months to sell, something doesn't add up — either the price is inflated or the neighborhood is in decline.
• Very low stock (fewer than 15 listings): You don't have real market information. You might be paying over value.

In June 2026, central neighborhoods with yields below 5% are usually speculative plays, not income investments. Check the price ranking by neighborhood to see if there's historical appreciation that justifies low yields.

Conclusion

Your investment strategy depends on your objective:

If you seek maximum income and can wait: Rincón del Cerro, La Teja, Sayago. Yields of 7.5%-8.2% with prices under USD 2,500/m². Accept that DOM will be 115-135 days.

If you want balance: Sayago or Paso de la Arena. Solid returns (7.2%-7.5%) with reasonable liquidity. Enough stock to compare options.

If you value being able to sell quickly: Cordón, Parque Rodó, Pocitos. Lower yields (5.2%-6.2%) but DOM of 68-89 days. Ideal if your horizon is 5-7 years.

Next step: Once you've defined the neighborhood, filter by number of bedrooms — studios and 1-bedroom units typically have higher yields than 3-bedroom units in most neighborhoods.

Remember that these yields are gross based on listing prices. Transactions in Montevideo typically close between 5% and 10% below publication — which can improve your net yield if you negotiate well.

Updated: June 2026. Source: INGAR analysis based on current real estate supply in Montevideo.

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