Uruguay offers security, peace, beautiful beaches – and rather good gross rental yields.  Since late 2005 the value of apartments and houses in Montevideo has doubled.  Residential property prices increased this past year, but not as much as during the previous 3 years. 

Montevideo apartments are no longer the ‘screaming buy’ they were in 2005.  In view of the price appreciation to date, we’re moving the country rating down from 5-star to 4-star.  
But property here is still good value, and we still recommend buying in Montevideo.

Rents on mid-sized prime area Montevideo houses (250 and 350 square metres) have gone up particularly strongly, so gross rental yields on these categories are a healthy 9%. Montevideo apartment yields range from 6.7% to 8.6%.

The country remains beloved of Argentinians and Americans, a haven for the well-to-do, a tranquil corner in a turbulent world.  The Uruguayan Peso has mildly appreciated against the US$ since late 2005; it now stands at USD=19.2 Pesos, versus USD=23.1 Pesos then.