Real Estate in Chile |
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Use the free information on this site to prepare your purchase and investment of Real Estate in Chile.
The Big Picture
For property investors, Chile is an interesting destination because of the high quality of its institutions, its good infrastructure
and low corruption. With far higher interest rates in Chile than in Europe or the US, buying property with loans
is comparatively harder for Chileans. Current interest rates for Chileans are around 4% + Inflation rate (U.F.), amounting to around
8-9% effectively. Returns on properties usually start with 6% p.a., on average for commercial property are around 8%-10% (estimate)
and there frequently are opportunities.
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Opportunities
The Chilean real estate market is stable in terms of prices of residential property. Commercial property and land show
more variation and chances. Here are some investment ideas:
- Residential or office property in Vitacura and Las Condes(Santiago)
- Land in the area between Chillan and up north towards Santiago
- Tourism-related property in several growing hot spots
- Second-home real estate such as lakefront land and houses
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News |
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04th Jan 2011
Peso vs. Dollar and Euro
The Chilean Peso has reached new heights against USD and EUR. There are two main factors responsible: The Chilean
copper production and export, which counts for about 60% of Chilean exports in total. Copper has reached an all-time
high at more than 4 USD per pound, coming from less than 1.50 USD/lb after the Lehman crisis. The second reason are the
higher interest rates. The Chilean reserve rate is 3.25%, high compared to the EU and US rates at 0-1%. Investors
who have bought real estate in chile 2 years ago, have noted a capital gain of >20% just because of the exchange rate changes.
But the strong Peso affects exports, so that the Central Bank has anounced to purchase USD 12 billions.
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21th Dec 2010
The Value of Land is rising
According to a recent study, the average value of agricultural land in Chile has been increasing over the last
years. After reaching a low of aprox. 11.300 USD /hectar in 2002 (254 U.F.), the average value per ha of agricultural
real estate in chile has
reached aprox. 17.425 USD (390 U.F.) an increase of 53.5% after inflation. Source: Odepa UPC Study
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14th Oct 2010
Interest Rates in Chile
Chilean interest rates for property loans have gone up to on average 4.99% above inflation. In Chile, it is very
unusual to take a loan in the local currency, Pesos. Instead, monthly instalments are defined in U.F. (Unidades de Fomento)
an inflation neutral indicator. Over the last 3-4 years though, inflation in Chile was mostly below 3 percent.
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09th Sep 2010
Property near the Metro
Properties located along the 4 new metro stations of line 1 in Santiago have been subject to rising prices in the range of 10-15%.
The new metro stations are situated in the "Las Condes" neighbourhood, one of the upmarket quarters of Santiago. A similar development
is to be expected when the new stations of line 6 will be inaugurated later this year. Buying real estate close to future metro stations
has proven a good business, although expected price-increases have been higher than what is actually been seen. The still expanding
Santiago Metro System is one of the most modern in the world, and popular for it´s cleanliness, speed, and reliability.
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14th Aug 2010 Real Estate in Chile after the earthquake
Although the earthquake of 27th Feb. did not cause major damages in Santiago and other important Chilenian cities such as Vina del Mar,
Valparaiso and La Serena, it has already caused some new developments in the Chilenian Real Estate market. Modern apartment
buildings have proven stable in their great majority. Nonetheless, there have been some grave problems for the people who lived
in the higher floors of these houses. As the escalators stopped working in many cases for a week or more, people had to walk up
to 20 floors by foot any time they wanted to leave their house. This has complicated daily life severely. Also, the heavy movement
of those high-up apartments has caused many household-items to fall down, items such as TVs, fridges, paintings etc. have been
destroyed. The general trend for real estate in chile after the earthquake therefore now points to an increased demand for solid houses and solid old apartment
houses of only a few floors. (Source: Property-in-Chile.com 2010)
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Your comments and questions on real estate in Chile are very welcome.
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Please adress your comments and questions on real estate in Chile to
info@property-in-chile.com
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