MercoPress. South Atlantic News Agency

Argentine buyers slow their push into Uruguay's property market

Among the reasons operators say keep Uruguay attractive is legal certainty in the rental market

The flow of Argentine investors into Uruguay's property market, which intensified after the pandemic and during the years of greatest economic uncertainty in Argentina, is showing signs of easing. Sector operators attribute the shift to Argentina's economic recovery and to the narrowing price gap between the two countries.

The assessment matches official indicators. 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 the 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 dollars, against some 2,800 in Argentina, though available measurements vary by source and other estimates place the Montevideo average below that figure. In premium segments, such as Carrasco or Puerto del Buceo, values are around 4,500 dollars per square meter.

The slowdown is concentrated, according to operators, 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 — the main driver of new construction in Uruguay — where the price per built square meter stands at around 2,385 dollars, according to the National Housing Agency, and where Uruguayan buyers are gaining share.

The most sought-after products are one-bedroom units, priced at up to 160,000 dollars, and two-bedroom apartments with a garage, at around 180,000. The highest-demand areas for rental investment include Parque Rodó, Tres Cruces and La Blanqueada. Argentina accounts for around 10% of property searches in the country.