Gross rental yields on Montevideo apartments are moderate to good

Residential Valuation Specialist | January 15, 2019

Last Updated: Jan. 15, 2019
MONTEVIDEO -
Apartments
PRICE/SQ.M (US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
BUCEO 2,606 13.49 6.21% 242 1.25
CARRASCO 3,076 13.98 5.45% 286 1.30
CENTRO 1,853 9.52 6.17% 172 0.88
CIUDAD VIEJA 2,050 11.14 6.52% 190 1.03
PARQUE RODO 3,023 11.35 4.51% 281 1.05
POCITOS 2,794 11.54 4.96% 260 1.07
PRADO 2,583 10.62 4.93% 240 0.99
PUNTA CARRETAS 3,290 14.16 5.16% 306 1.32
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
* Based on apartments with 2 bedrooms and 2 bathrooms
Source: InfoCasas Definitions: Data FAQ See also: Update Schedule

The typical gross rental yield in Montevideo - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs, - is moderate to good, at around 4.5% to 6.5%. Our research suggests that the typical yield has fallen over the past year. Yields are better on smaller houses and apartments, as is typical in most countries. Bear in mind that these yields are gross, i.e., before costs and taxes, and so realistically net rental returns would normally be a couple of percentage points lower.

Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.

Round trip transaction costs are high in Uruguay (i.e., the total costs of buying and selling a property).  See our residential transaction costs analysis for Uruguay and Residential buy/sell costs in Uruguay compared to the rest of Latin America.

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.