KEY POINTS
- Argentine investment in Uruguay’s property market is slowing due to Argentina’s economic recovery and narrowing price gaps.
- Uruguay’s legal certainty in rentals and political stability continue to attract investors, especially larger ones.
- Small savers are pulling back, while demand shifts toward promoted-housing schemes and Uruguayan buyers gain share.
The flow of Argentine investors into Uruguay’s property market, which intensified after the pandemic and during years of economic uncertainty in Argentina, is showing signs of easing. Sector operators attribute the shift to Argentina’s economic recovery and a narrowing price gap between the two countries.
According to a report by MercoPress, the Real Estate Activity Index compiled by Uruguay’s National Statistics Institute has recorded a slight slowdown since mid-2025, without sharp falls, in a market coming off high volumes. Across the River Plate, Argentina’s residential market consolidated its recovery during 2025, with a rebound in prices, an increase in property deeds, and the return of mortgage lending.
“With Argentina partially recovering, that wave of Argentines coming to invest here slowed down. They still come; the reason is still the economic and political stability we have,” said the president of the Uruguayan Real Estate Chamber, Matías Medina. He noted that institutional stability alone is not enough and that investors carefully weigh expected returns.
Among the reasons operators say keep Uruguay attractive is legal certainty in the rental market. Medina said guarantees work and legal deadlines are met, in contrast with difficulties his Argentine counterparts describe in eviction or property-recovery proceedings.
The convergence in prices reduces the differential that drove part of those transactions. Luis Silveira, director of a real estate investment firm, put the average price per square meter in Montevideo at around $3,500, against some $2,800 in Argentina, though available measurements vary. In premium segments, such as Carrasco or Puerto del Buceo, values are around $4,500 per square meter.
The slowdown is concentrated among small savers who bought apartments to rent out. Larger investors, engaged in developments, land purchases, or commercial premises, are maintaining their activity. Argentine demand remains focused on the promoted-housing scheme, where the price per built square meter stands at around $2,385, and where Uruguayan buyers are gaining share. The most sought-after products are one-bedroom units priced up to $160,000 and two-bedroom apartments with a garage at around $180,000. Argentina accounts for around 10% of property searches in the country.
Market Implications for Foreign Investors
For international investors and expats, the easing of Argentine demand signals a normalization of Uruguay’s property market after a post-pandemic boom. While the slowdown is modest, it may offer more balanced pricing and reduced competition for desirable units, particularly in Montevideo’s mid-range segments. Uruguay’s legal certainty and stable rental market remain key draws, but investors should monitor price convergence with Argentina and the evolving mix of local versus foreign buyers.
