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Rents rose 9% in Montevideo last year

Rents rose 9% in Montevideo last year

According to the report, the average rental value of apartments in Wells It increased 13.5% in current pesos, when comparing December 2023 with the same month of 2022. Cord It was the second neighborhood with the highest price increase: it rose 13.3%, entering third place Divewith an increase of 12.8%.

It is worth mentioning that these are general business averages, without weighting by building type. So, beyond the trend in the price of rentals(which seems clear to be on the rise) there is significant demand in the aforementioned neighborhoods, which also explains the increase in values.

By way of comparison, according to the figures of the National Institute of Statistics (INE) -based on businesses registered in the rental guarantee services of the General Accounting Office of the Nation and Anda- the price increase in new rental contracts for the same period was 9.4% in Pocitos, 9.5% in Cord and 7.1% in Diving. In the case of the INE, the data covers rentals of all properties, not just apartments.

Pocitos remains the neighborhood with the greatest interest in rentals, but Cordón has come closer. In the percentage of visits to Mercado Libre for rent, Pocitos went from 12.3% to 11.2% of total visits, between 2021 and 2023. In the case of Cordón, it went from 9.1 to 9.6%.

Regarding the average rental price in Montevideo, went from 24,784 in January 2023 to 27,024 in January 2024, an increase of 9% (3.8% in real terms). Still, the average rent in real terms is below its 2019 level.

Trends

Beyond prices, an interesting fact that emerges from the ML real estate report is that between January 2019 and December 2023, the proportion of advertisements corresponding to apartments in Montevideo It rose from 79 to 85%, reducing the proportion of houses. Surely this responds to a long-term trend, with social foundations: smaller families, greater mobility, greater comforts, etc.

In the Coast City, the change is even more acute, although the proportion of apartment advertisements is lower. It went from 11 to 37% in the same period, which illustrates the great expansion of real estate investment in cannelloniespecially in areas near Montevideo (City of the Coast and surroundings). In Maldonado The proportion of apartment advertisements, on the other hand, has remained stable at around 68-70%.

The average surface area of ​​the apartments offered in ML real estate is very stable between neighborhoods, varying around 50 m2, with exceptions that confirm the rule (in Carrasco The average apartment offered is more than 100 meters, but there are few units and of a different size, due to the type of construction in that neighborhood). In Pocitos (where the highest accumulated real estate value is surely found in the capital) the average is somewhat above the reference: 59 m2, while in Rodo ParkCord and The Bleached They are located at 47, 48 and 45 m2, respectively.

On the other hand, an indicator of interest – which can be an approximation of the tourist movement in each season – is the proportion of visits to real estate advertisements in Maldonado, to Seasonal rental. Taking the months of December of each year (the month before the peak of the season), between 2019 and 2023 that proportion was: 65%, 56%, 61%, 56% and 51%. That is to say, in the run-up to the current season, the lowest percentage of rental visits was recorded, with an appreciable (although not drastic) difference compared to previous years. Surely the Argentine crisis affects this trend.

It is worth remembering that the ML real estate report does not disclose absolute figures on the number of businesses.

Real estate profitability

Mercado Libre’s Semiannual Real Estate report also includes calculations of annual gross profitability for apartments and houses for rent in Montevideo, taking the rental price and the value of the home. According to the platform’s analysis, it was observed that in the case of apartments the gross profitability (analyzing the average prices of advertisements in the second half of the year) was around 6%, both in coastal neighborhoods and in other neighborhoods. centrally located: Punta Carretas (6.07%), Pocitos (5.78%), Carrasco (6.33%), Centro (5.64%), Aguada (5.83%) and Tres Cruces (6.38% ).

On the other hand, there were neighborhoods in which the gross profitability of the apartments was well above 6%, such as Buceo (8.93%), Nuevo París (9.08%), Ciudad Vieja (9.22%). , Cerro (9.40%), Jardínes del Hipódromo (9.52%), Malvín Norte (10.64%) and Atahualpa (10.95%).

According to the report, the price per square meter in apartments in Pocitos averaged $3,456, while in Cordón the price was $2,867, according to data from the second half of 2023.

Source: Ambito

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