Best Neighborhoods to Invest in Montevideo — July 2026
INGAR · · Rankings
Which Montevideo neighbourhood has the highest rental yield?
July's highest gross yield is Cerro at 11.6%, followed by Belvedere (11.3%), Aires Puros (11.0%), Colón (10.9%) and Cerrito (10.3%). The city median came in at 6.0%, so these five neighbourhoods yield almost twice as much as the typical Montevideo apartment.
The table ranks neighbourhoods by gross yield and includes the estimated net figure, median rent, total price and the years of rent needed to cover the purchase price.
| Neighborhood | Gross yield | Net yield | Median rent | Median total price | Years of rent | Supply |
|---|---|---|---|---|---|---|
| Cerro | 11.6% | 7.5% | USD 449 | USD 68,000 | 12.6 | Low |
| Belvedere | 11.3% | 7.3% | USD 530 | USD 82,500 | 13.0 | Low |
| Aires Puros | 11.0% | 7.1% | USD 544 | USD 79,900 | 12.2 | Low |
| Colón | 10.9% | 7.0% | USD 438 | USD 50,000 | 9.5 | Low |
| Cerrito | 10.3% | 6.7% | USD 479 | USD 70,000 | 12.2 | Low |
| Maroñas | 9.3% | 6.0% | USD 429 | USD 68,000 | 13.2 | Low |
| Atahualpa | 9.2% | 6.0% | USD 616 | USD 130,000 | 17.6 | Medium |
| Malvín Norte | 8.9% | 5.8% | USD 516 | USD 75,000 | 12.1 | Medium |
| Paso Molino | 8.0% | 5.2% | USD 581 | USD 117,780 | 16.9 | Low |
| Villa Dolores | 7.9% | 5.2% | USD 585 | USD 150,000 | 21.4 | Low |
| La Teja | 7.7% | 5.0% | USD 469 | USD 57,000 | 10.1 | Low |
| Reducto | 7.3% | 4.7% | USD 652 | USD 99,000 | 12.7 | Medium |
| Ciudad Vieja | 6.9% | 4.5% | USD 653 | USD 129,000 | 16.5 | Medium |
| Unión | 6.9% | 4.5% | USD 588 | USD 110,000 | 15.6 | Medium |
| La Comercial | 6.7% | 4.3% | USD 650 | USD 118,000 | 15.1 | Medium |
| Villa Española | 6.6% | 4.3% | USD 516 | USD 89,000 | 14.4 | Medium |
| Tres Cruces | 6.6% | 4.3% | USD 714 | USD 150,300 | 17.5 | High |
| Goes | 6.5% | 4.2% | USD 596 | USD 99,300 | 13.9 | Low |
| Sayago | 6.5% | 4.2% | USD 460 | USD 77,000 | 13.9 | Low |
| Arroyo Seco | 6.5% | 4.2% | USD 574 | USD 116,500 | 16.9 | Low |
| Brazo Oriental | 6.4% | 4.1% | USD 656 | USD 115,000 | 14.6 | Medium |
| Punta Gorda | 6.4% | 4.1% | USD 1,776 | USD 226,000 | 10.6 | Medium |
| Villa Muñoz | 6.3% | 4.1% | USD 763 | USD 115,000 | 12.6 | Low |
| La Blanqueada | 6.1% | 3.9% | USD 714 | USD 141,500 | 16.5 | High |
| Barrio Sur | 6.0% | 3.9% | USD 747 | USD 155,081 | 17.3 | High |
| Parque Batlle | 5.9% | 3.9% | USD 742 | USD 164,640 | 18.5 | High |
| Carrasco | 5.9% | 3.9% | USD 1,952 | USD 420,000 | 17.9 | High |
| Cordón | 5.9% | 3.8% | USD 712 | USD 143,000 | 16.7 | High |
| Jacinto Vera | 5.8% | 3.8% | USD 668 | USD 139,000 | 17.3 | Medium |
| Centro | 5.8% | 3.8% | USD 677 | USD 155,000 | 19.1 | High |
| Prado | 5.7% | 3.7% | USD 663 | USD 159,000 | 20.0 | High |
| Golf | 5.7% | 3.7% | USD 2,894 | USD 670,000 | 19.3 | Medium |
| Aguada | 5.7% | 3.7% | USD 648 | USD 150,000 | 19.3 | High |
| Carrasco Norte | 5.7% | 3.7% | USD 2,244 | USD 385,800 | 14.3 | Medium |
| Mercado Modelo | 5.6% | 3.6% | USD 586 | USD 108,000 | 15.4 | Low |
| Buceo | 5.6% | 3.6% | USD 761 | USD 170,100 | 18.6 | High |
| Ituzaingó | 5.6% | 3.6% | USD 532 | USD 75,000 | 11.7 | Low |
| Puerto Buceo | 5.5% | 3.5% | USD 1,626 | USD 350,000 | 17.9 | Medium |
| Bella Vista | 5.5% | 3.5% | USD 649 | USD 150,000 | 19.3 | Medium |
| Punta Carretas | 5.4% | 3.5% | USD 1,117 | USD 266,700 | 19.9 | High |
| Capurro - Bella Vista | 5.3% | 3.5% | USD 616 | USD 141,750 | 19.2 | Low |
| Malvín | 5.3% | 3.4% | USD 840 | USD 200,956 | 19.9 | High |
| Palermo | 5.3% | 3.4% | USD 734 | USD 153,550 | 17.4 | High |
| Capurro | 5.2% | 3.4% | USD 548 | USD 171,834 | 26.1 | Medium |
| Pocitos Nuevo | 5.1% | 3.3% | USD 813 | USD 187,900 | 19.3 | High |
| Pocitos | 5.1% | 3.3% | USD 883 | USD 240,000 | 22.7 | High |
| Parque Rodó | 4.9% | 3.2% | USD 744 | USD 195,500 | 21.9 | High |
| Villa Biarritz | 4.9% | 3.2% | USD 1,154 | USD 430,000 | 31.1 | Medium |
| Larrañaga | 4.4% | 2.9% | USD 853 | USD 142,000 | 13.9 | Low |
Why do the cheapest neighbourhoods yield the most?
Because rents do not fall in the same proportion as sale prices. An apartment in Cerro costs USD 68,000 and rents for USD 449 a month; one in Pocitos costs USD 240,000 and rents for USD 883. The price multiplies by 3.5 between the two, but the rent only by 2, and that difference is the entire yield gap.
The reason is that the sale price prices in expected appreciation, the standing of the area and resale liquidity, while rent mostly responds to what a tenant in that area can pay. In higher-income neighbourhoods there is a price component that rent never charges for.
This does not make a high yield an automatic recommendation. A double-digit return usually comes with more frequent vacancy, higher tenant turnover, arrears that are harder to manage and a resale that can take considerably longer. Yield measures rent against price; it does not measure the risk of collecting it or of getting out.
What is the difference between gross and net yield?
The net figure deducts the real costs of holding a rented property from the gross: income tax on the rent, estimated vacancy, management and letting fees, maintenance and owner's taxes. At the July close that deduction is roughly one third of the gross, so a neighbourhood at 6.0% gross ends up yielding around 3.9% net.
That is the number to use when comparing against financial alternatives, because it is what actually remains. High-yield neighbourhoods keep their advantage after the deduction: Cerro goes from 11.6% to 7.6% net, still far above Pocitos's 3.3% net.
How many years of rent cover the purchase price?
Between 9.5 and 31.1 years depending on the neighbourhood. The efficient extreme is Colón, where accumulated rent covers the price in 9.5 years, followed by La Teja (10.1) and Punta Gorda (10.6). At the other end sits Villa Biarritz, which needs 31.1 years, more than three times as long.
Villa Biarritz is the clearest illustration in the ranking: third by price per square metre (USD 3,895/m²) and last in profitability measured in years of rent. Whoever buys there is not buying income, they are buying a scarce location and the expectation that it appreciates. That is a legitimate decision, but it is a different decision.
Where should you invest depending on your goal?
If the goal is current income, the top of the table is where to look, with the management caveat already noted: Cerro, Belvedere, Aires Puros, Colón and Cerrito yield between 10.3% and 11.6% gross, with entry tickets of USD 50,000 to USD 82,500.
If the goal is a balance between income and liquidity, the middle band is more interesting: Tres Cruces (6.6%), Ciudad Vieja (6.9%), La Blanqueada (6.1%) and Barrio Sur (6.0%) sit above the city median while being areas with stable demand and reasonably brisk resale.
If the goal is preserving capital, the bottom of the table is not a mistake but the price of safety: Larrañaga (4.4%), Villa Biarritz (4.9%) and Parque Rodó (4.9%) yield little precisely because there are many buyers willing to pay to be there.
Conclusion
Profitability in Montevideo moves almost as a mirror image of price: the cheapest neighbourhoods yield twice what the most expensive ones do, and that relationship is so systematic that it should be treated as a structural feature of the market rather than a passing opportunity. The useful question is not which neighbourhood yields most, but how much management effort and how much illiquidity you are willing to take on in exchange for those extra points.
Read on: neighbourhood price rankings and price versus return comparison.
Frequently asked questions
How often is this data updated?
It is recalculated once a month, with the previous month's close, and published alongside the INGAR Index.
Where do these prices come from?
From our own survey of publicly listed supply in Montevideo: these are asking prices, not closing prices. In Uruguay deals usually close below the listed value.
Want to decide with data instead of gut feel? See how to invest in Uruguay, get an online property appraisal or message us on WhatsApp.
This data is part of the INGAR Index, the monthly index of Montevideo's real estate market, with a data sheet per neighbourhood and a public methodology.
Updated with the 2026-07 close. Source: INGAR Index, the monthly index of Montevideo's real estate market.
Data from the INGAR Index — 2026-07.