Residential Real Estate Leases - Uruguay

In 2024, the revenue of the Residential Real Estate Leases market market in Uruguay is projected to reach US$2.85bn.
House Leases dominate this market segment, with a projected market volume of US$1.63bn in the same year.
Looking ahead, the revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.38%, resulting in a market volume of US$3.70bn by 2029.
Uruguay's residential real estate lease market is experiencing a surge in demand due to its stable economy and attractive investment opportunities.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Uruguay is experiencing significant growth and development.

Customer preferences: Uruguayans have shown a growing interest in residential real estate leases as an alternative to home ownership. This shift in preferences can be attributed to several factors. Firstly, the younger generation is increasingly valuing flexibility and mobility, and renting provides them with the freedom to move and explore different neighborhoods and cities. Additionally, renting allows individuals to avoid the financial burden of a mortgage and the responsibilities of property maintenance. Lastly, with the rise of co-living and shared spaces, there is a growing demand for rental properties that offer communal amenities and a sense of community.

Trends in the market: One notable trend in the Residential Real Estate Leases market in Uruguay is the increasing popularity of furnished apartments. This trend is driven by the growing number of expatriates and digital nomads who are relocating to Uruguay for work or lifestyle reasons. Furnished apartments provide these individuals with a hassle-free solution, as they do not need to worry about purchasing and transporting furniture. Additionally, the demand for short-term rentals, such as Airbnb, is also contributing to the rise in furnished apartments. Another trend in the market is the emergence of co-living spaces. These are shared living arrangements where individuals rent a private bedroom but share common areas such as the kitchen, living room, and sometimes even bathrooms. Co-living spaces cater to the younger generation who value affordability, community, and convenience. They often come with additional benefits such as cleaning services, social events, and access to amenities like gyms or coworking spaces.

Local special circumstances: Uruguay's stable political and economic environment has attracted foreign investors and expatriates, driving demand in the residential real estate leases market. The country's strong legal framework and property rights protection provide a sense of security for both landlords and tenants. Additionally, Uruguay's reputation as a safe and peaceful country has made it an attractive destination for retirees and second-home buyers, further boosting the demand for rental properties.

Underlying macroeconomic factors: Uruguay's economy has been growing steadily, which has had a positive impact on the Residential Real Estate Leases market. The country has experienced low inflation rates and a stable currency, creating a favorable environment for investment. Additionally, the government has implemented policies to attract foreign investors, such as tax incentives and streamlined bureaucratic processes. These factors have contributed to a vibrant real estate market, with increased construction activity and a wide range of rental properties available.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Uruguay

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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