Real estate

Reflections on the real estate sector in Uruguay

Written by valorando February 2, 2026 0 comment

2025 balance sheet and prospects for 2026

(Based on market data, public sources, and industry analysis)

Introduction

The Uruguayan real estate sector is undergoing a period of active stability and consolidation, characterized by moderate price growth, sustained levels of activity, and a dynamic rental market. During 2025, far from scenarios of overheating or contraction, the market showed clear signs of maturity, greater selectivity, and a growing need for technical analysis for decision-making, according to Global Property Guide, 2025.

Looking ahead to 2026, projections do not anticipate sudden changes, but rather a continuation and deepening of existing dynamics: rationality in price formation, segmentation by location and type, and greater weight given to real economic fundamentals (The LAT Investor, 2025). In this context, technical knowledge, correct valuation, and a comprehensive understanding of the market are consolidating their position as determining factors.

Price trends: stability with moderate growth

During 2025, based on currently available information, it is not yet possible to calculate the full year-on-year change in housing prices in Uruguay compared to 2024. However, when analyzing INE data for the January–September 2025 period, prices remained relatively stable, with a variation of -0.2% measured in dollars and +0.3% in UI.

According to data from the second quarter of 2025:

  • According to the latest available data, in September 2025, the average value of sales nationwide stood at around UYU 90,000 per square meter.
  • In Montevideo, it reached approximately UYU 117,000 per square meter, with virtually neutral real increases (Global Property Guide).
  • These levels reflect nominally high prices, especially in the capital, although there is no evidence of significant real increases in the recent period.

In Montevideo, the country’s main real estate market, the evolution of values suggests a scenario of real stabilization, consistent with a mature market and aligned with the effective payment capacity of demand. At the national level, however, there is greater heterogeneity, with some inland areas—particularly coastal and urban expansion areas—showing greater relative dynamism in transactions and average transaction values.

By 2026, estimates point to a continuation of this pattern:

  • In Montevideo, annual price growth of 3% to 5% is projected, depending on inflation (The LAT Investor, 2025).
  • In premium and coastal areas, such as Punta del Este and high-demand neighborhoods, rates could exceed the national average, driven by sustained interest and supply constraints (The LAT Investor, 2025).

Activity and transaction volume

The volume of sales remained at solid levels throughout 2025, continuing the recovery seen in previous years. According to data from the National Statistics Institute (INE):

  • Montevideo accounted for approximately 30% of transactions.
  • Maldonado and Canelones accounted for approximately 18% and 14% of transactions, respectively (INE, 2025).

During certain periods of the year, downward price adjustments were observed, accompanied by an increase in the number of transactions, reflecting an active market undergoing readjustment (INE, 2025).

By 2026, although there are no official projections, observed trends suggest that activity will remain stable and selective, without major volatility, in a context of greater balance between supply and demand (The LAT Investor, 2025).

Rental market: a structural pillar

The rental market was one of the most dynamic segments in 2025. Residential rents in pesos recorded year-on-year increases of more than 5%, accompanied by an increase in the number of current contracts (Global Property Guide, 2025).

As of November 2025:

  • The national average income stood at UYU 21,109.
  • In Montevideo, it reached UYU 21,982.
  • There were 88,941 valid rental contracts registered, 4.11% more than the previous year.

This performance reflects solid structural demand, driven by demographic changes, labor mobility, and greater difficulties in accessing home ownership.

By 2026, it is expected that:

  • Demand for rentals remains strong.
  • Incomes evolve moderately, adjusting to inflation and the local economic context (The LAT Investor, 2025).

Profitability and investor profile

Gross rental yields in Uruguay remained at moderate but competitive levels during 2025:

  • En Montevideo, los rendimientos medios oscilaron entre el 4,97 % y el 6 %, dependiendo del barrio, el tipo de propiedad y la gestión de activos (The LAT Investor, 2025).
  • In coastal areas, especially those focused on seasonal rentals, returns can exceed 7% (The LAT Investor, 2025).

This scenario is expected to continue through 2026, reinforcing the profile of the Uruguayan market as a stable, long-term investment destination, valued for its legal certainty, predictability, and low volatility (The LAT Investor, 2025).

Structural trends and key reflections

A joint analysis of 2025 and projections for 2026 yields some key conclusions:

  • The Uruguayan real estate market shows no signs of imbalance, but rather maturity and rationality (Global Property Guide).
  • Strong segmentation by location, type, and quality of asset is becoming established (The LAT Investor).
  • Demand—both local and international—is increasingly demanding in terms of construction quality, functionality, and services (The LAT Investor).
  • The correct definition of value and technical support become critical factors in completing transactions within reasonable timeframes.

Conclussion

The balance sheet for 2025 and the outlook for 2026 show a stable, active, and technically demanding Uruguayan real estate market, where opportunities exist but require rigorous analysis, reliable information, and a deep understanding of the context.

More than just a change of cycle, the sector is deepening a logic of maturity and professionalization, in which value is no longer presumed but justified by data, economic fundamentals, and accurate technical valuations (Global Property Guide; The LAT Investor).

Bibliography

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