The construction industry in Uruguay is estimated to have contracted marginally in 2025, by 0.4% in real terms, owing to increased housing prices and reduced investments in the power infrastructure sector. According to the Central Bank of Uruguay (BCU), the construction industry’s value-add declined by 3.1% year-on-year (YoY) in the third quarter of 2025, preceded by a YoY growth of 1.1% in Q2 and a decline of 1.6% in Q1 2025. Moreover, the average housing price index (HPI) rose by 12.6% YoY in the first nine months of 2025, following an annual rise of 8.4% in 2024. Furthermore, 10% US tariff on Uruguay’s goods, coupled with the current skilled labor shortages are also expected to have impacted construction activity in 2025.
The analyst expects the construction industry in Uruguay to register an annual average growth rate of 3.5% between 2026 and 2029, supported by investments in the renewable energy, manufacturing, transport and water infrastructure projects. Growth will also be driven by investments associated with the rail masterplan of the Ministry of Transport and Public Works (MOTP), which is currently in development as of mid-November 2025. Although the new national railway masterplan is still being finalized, the government has allocated UYU8.3 billion ($200 million) in the same month for the development of priority railway projects. Some of the priority projects under the masterplan include the rehabilitation of the railway bridge over the Río Negro, construction of a new line from the Central Railway to the state-owned oil refinery at La Teja, reopening the 290km line between Peñarol in Montevideo and José Pedro Varela, and development of a new southern connection to the Port of Montevideo.
The analyst expects the construction industry in Uruguay to register an annual average growth rate of 3.5% between 2026 and 2029, supported by investments in the renewable energy, manufacturing, transport and water infrastructure projects. Growth will also be driven by investments associated with the rail masterplan of the Ministry of Transport and Public Works (MOTP), which is currently in development as of mid-November 2025. Although the new national railway masterplan is still being finalized, the government has allocated UYU8.3 billion ($200 million) in the same month for the development of priority railway projects. Some of the priority projects under the masterplan include the rehabilitation of the railway bridge over the Río Negro, construction of a new line from the Central Railway to the state-owned oil refinery at La Teja, reopening the 290km line between Peñarol in Montevideo and José Pedro Varela, and development of a new southern connection to the Port of Montevideo.
The Construction in Uruguay - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Uruguay's construction industry, including:
- Uruguay's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Uruguay's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in Uruguay. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Uruguay, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
