Palermo Montevideo: Prices and Opportunities — July 2026

How much does a square metre cost in Palermo?

The square metre in Palermo has a median of USD 3,155 for apartments, 27% above the Montevideo median, but the median total price is just USD 153,550, because the units are the smallest on the coastal strip: a median 48 square metres.

Metric	Value
Median price per m²	USD 3,155/m²
Usual range (p25–p75)	USD 2,700 – 3,559/m²
Median total price	USD 153,550
Median floor area	48 m²
Monthly change	-0.2%
Year-to-date change	-3.6%
Median rent	USD 734
Gross yield	5.3%
Estimated net yield	3.4%
Years of rent to cover the price	17.4
Months of supply	1.5
Supply level	High
Houses: median price per m²	USD 1,524/m²

Palermo ranks 12th in price per square metre and yet has a lower entry ticket than Centro or Tres Cruces. That combination makes it one of the cheapest ways to buy steps from the promenade.

What is the rent in Palermo and what does it yield?

The median rent is USD 734 a month and the gross yield is 5.3%, below the city median. The estimated net figure is 3.4% and it takes 17.4 years of rent to cover the purchase price.

That payback period is shorter than in other coastal neighbourhoods with similar yields (Malvín needs 19.9 years and Pocitos 22.7) because the entry price is low in absolute terms. It is the same annual return, but on much less committed capital.

How did Palermo prices move this month?

Asking prices eased 0.2% in the month and are down 3.6% for the year. Supply is absorbed in 1.5 months, faster than the city median, with a high supply level.

What sets Palermo apart?

Palermo is the transition neighbourhood between Centro and the southern coast, and it shares with Barrio Sur an identity no other Montevideo neighbourhood has: it is the heart of candombe and Afro-Uruguayan culture, with the llamadas parading through its streets every February.

In urban terms it is a neighbourhood of old houses and low buildings, bounded by the southern promenade with Parque Rodó a few blocks away. It is a ten-minute walk from the centre and the same distance from Ramírez beach, a position hard to match for the price it carries.

The neighbourhood has been attracting residential investment in recent years, with renovations and new construction of small units aimed at a young market, and that explains both the low median floor area and the relatively high price per square metre.

Houses in Palermo cost USD 1,524/m² with a median price of USD 310,000, 52% less per square metre than apartments. These are the neighbourhood's old houses, many of them large and with renovation potential.

Who is Palermo right for?

For those seeking a coastal and central location at once on a budget of around USD 150,000, and who do not need floor area. It offers one of the best location-to-price ratios in the city.

For investors, a 5.3% return is modest but achieved with low entry capital for the area, and 1.5 months of absorption indicates good liquidity. If pure return is the goal, Barrio Sur is right next door and yields 6.0% for a barely higher ticket; if floor area is the goal, Parque Batlle offers a median 57 square metres for USD 164,640.

Frequently asked questions

How much does a square metre cost in Palermo?

The table above shows the neighbourhood's median USD per square metre and its usual range, updated with the INGAR Index monthly close.

Is Palermo a good place to invest?

It depends on your goal: check the yield and supply dynamics above. For a read on a specific property, get an online appraisal or write to us.

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. See the Palermo data sheet with the full monthly series and the 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.