Residential Real Estate - Uruguay

The Residential Real Estate market market in Uruguay is expected to reach a value of US$179.90bn by 2024.
It is projected to exhibit a compound annual growth rate (CAGR 2024-2029) of 3.50%, leading to a market volume of US$213.70bn by 2029.
In terms of global comparison, China is anticipated to generate the highest value in the Real Estate sector, amounting to US$112.9tn in 2024.
The residential real estate market in Uruguay is currently experiencing a surge in demand from international investors seeking luxury beachfront properties.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

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

Customer preferences: Customers in Uruguay are increasingly looking for properties that offer modern amenities and high-quality construction. They are willing to pay a premium for properties that are located in desirable neighborhoods with easy access to amenities such as schools, shopping centers, and recreational facilities. Additionally, there is a growing demand for properties that offer sustainable and energy-efficient features, as customers are becoming more conscious of their environmental impact.

Trends in the market: One of the key trends in the residential real estate market in Uruguay is the increasing popularity of gated communities and condominiums. These developments offer security, privacy, and a range of amenities such as swimming pools, gyms, and green spaces. This trend is driven by the desire for a higher quality of life and a sense of community among residents. Another trend is the growing interest in vacation homes and investment properties. Uruguay's beautiful coastline and favorable tax laws make it an attractive destination for both domestic and international buyers. Many investors are purchasing properties with the intention of renting them out to tourists, taking advantage of the country's growing tourism industry.

Local special circumstances: Uruguay's stable political and economic environment has contributed to the growth of the residential real estate market. The country has a strong legal framework that protects property rights, making it a safe and secure place to invest in real estate. Additionally, Uruguay has a high standard of living and offers a good quality of life, which attracts both domestic and international buyers.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the residential real estate market in Uruguay. The country has experienced steady economic growth over the past decade, which has increased household incomes and purchasing power. Additionally, low interest rates and favorable financing options have made it easier for individuals to invest in real estate. In conclusion, the residential real estate market in Uruguay is experiencing significant growth and development. Customer preferences for modern amenities, desirable locations, and sustainable features are driving the demand for properties. The increasing popularity of gated communities and vacation homes, as well as favorable macroeconomic factors, are contributing to the market's growth. Uruguay's stable political and economic environment, along with its high standard of living, make it an attractive destination for real estate investment.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are considered at a country-specific level.

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

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Uruguay

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate - Uruguay

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts