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Chile's rental market offers attractive investment opportunities with gross yields averaging 4.81% nationwide as of September 2025.
Rental yields in Chile vary significantly by location and property type, with northern mining cities like Antofagasta delivering the highest returns at 6.38% while coastal areas like Viña del Mar offer more modest yields around 3.94%. Understanding these regional differences, along with property types and ongoing costs, is crucial for making informed investment decisions in Chile's dynamic real estate market.
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Chile's rental yields average 4.81% nationwide, with northern cities like Antofagasta leading at 6.38% and coastal areas like Viña del Mar at 3.94%.
Smaller apartments typically deliver higher percentage yields (5-6%) compared to larger properties (3.5-4.5%), while net yields are usually 1.5-2% lower than gross yields due to ongoing expenses.
| City | Average Gross Yield | Best Property Type |
|---|---|---|
| Antofagasta | 6.38% | 1-2 bedroom apartments |
| Concepción | 5.61% | Student housing, tech worker apartments |
| Temuco | 4.92% | Small apartments |
| Santiago | 4.64% | 1-bedroom units in central areas |
| Valparaíso | 4.01% | Historic area apartments |
| Viña del Mar | 3.94% | Coastal apartments |
What are the current average rental yields in Chile by city and region?
Chile's national average gross rental yield stands at 4.81% as of September 2025, with significant regional variations across the country.
Santiago, the capital, delivers yields between 4.64% and 4.75%, with certain neighborhoods like Bulnes, Santa Isabel, and Parque Almagro exceeding 5% for one and two-bedroom units. Concepción offers some of the strongest yields outside the mining regions at 5.47% to 5.61%, driven by steady demand from students and tech industry workers.
Northern mining cities provide the highest returns, with Antofagasta leading at 6.16% to 6.38% due to strong demand from mining sector employees. Temuco in the south delivers moderate yields of 4.92% to 4.94%, with some properties reaching 5.34%. Coastal cities show lower yields, with Viña del Mar averaging 3.92% to 3.94% and Valparaíso ranging from 3.87% to 4.01%.
These regional differences reflect local economic conditions, employment opportunities, and housing demand patterns. Northern cities benefit from mining industry salaries, while coastal areas face seasonal fluctuations and slower economic growth.
It's something we develop in our Chile property pack.
How do rental yields differ between apartments, houses, and property types?
Apartments consistently deliver the highest rental yields in Chile, typically ranging from 4% to 6% gross yields across major cities.
Houses, with a national average price of approximately $270,000, generally produce similar or slightly lower yields compared to apartments due to higher purchase prices and reduced tenant flexibility. Commercial properties show mixed performance, with Class A offices in Santiago's upscale neighborhoods maintaining lower vacancy rates and higher yields, while Class B and downtown commercial spaces have struggled with higher vacancies and reduced rents since the 2019 social unrest.
Property size significantly impacts yield performance. Studio and one-bedroom apartments often achieve the highest percentage yields at 5-6% due to strong demand from young professionals and students. Two-bedroom units typically yield around 4.5-5.5%, while larger three and four-bedroom properties generate lower yields of 3.5-4.5% due to a more limited renter pool and higher inventory levels.
Luxury properties tend to produce lower percentage yields despite commanding higher absolute rental income, as their elevated purchase prices compress yield calculations. This pattern holds across all major Chilean cities, making smaller apartments particularly attractive for yield-focused investors.
How do yields vary based on property size and surface area?
Property size creates a clear inverse relationship with rental yields in Chile, where smaller units consistently outperform larger properties on a percentage basis.
| Property Size | Typical Yield Range | Primary Demand Source |
|---|---|---|
| Studio apartments | 5.5-6.5% | Students, young professionals |
| 1-bedroom units | 5.0-6.0% | Young professionals, couples |
| 2-bedroom apartments | 4.5-5.5% | Small families, professionals |
| 3-bedroom properties | 4.0-4.5% | Families, expats |
| 4+ bedroom houses | 3.5-4.0% | Large families, high-income renters |
Smaller apartments benefit from robust demand across multiple demographic segments, creating more consistent rental income and faster tenant replacement when vacancies occur. The limited supply of affordable smaller units in prime locations further supports higher yields.
What is the average purchase price for properties including all fees and taxes?
Chilean property purchase prices vary significantly by type and location, with additional costs adding 5-8% to the base property price.
The national average apartment price stands at approximately $160,000, while houses average around $270,000. Santiago properties command higher prices at an average of $2,494 per square meter. These base prices exclude the mandatory additional costs that buyers must factor into their investment calculations.
Additional purchase costs in Chile include notary fees, registration charges, legal fees, broker commissions, and various taxes, collectively adding 5-8% to the property value. For existing residential properties, the transfer is typically VAT-exempt, but buyers should verify this status as business sellers may apply 19% VAT to transactions.
Foreign buyers face the same fee structure as domestic purchasers, with no additional restrictions or surcharges. These costs must be paid upfront and cannot typically be financed through the mortgage, requiring buyers to budget beyond their down payment requirements.
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What are the ongoing costs for property ownership and management?
Chilean property investors face several recurring costs that significantly impact net rental yields, typically reducing gross returns by 1.5-2%.
Property maintenance averages 1-1.5% of the property value annually, covering repairs, upkeep, and preventive maintenance. Professional property management services charge 8-10% of rental income, handling tenant screening, rent collection, and maintenance coordination. Property insurance, while optional, costs $200-$600 annually depending on coverage levels and property value.
Property taxes range from 0.5% to 1.4% of assessed value annually, varying by location and property type. HOA or community fees for condominiums typically range from $80-$250 monthly in Santiago, covering common area maintenance, security, and building services. Rental brokerage fees usually equal one month's rent when securing new tenants.
Vacancy allowances should account for 1-2 weeks annually in high-demand areas, though this can extend significantly in oversupplied markets. Smart investors factor all these costs into their yield calculations to determine true investment returns rather than relying solely on gross yield figures.
How do mortgage rates and financing conditions affect yields?
Chile's mortgage market offers relatively competitive financing conditions as of September 2025, with average rates at 4.39%.
Typical loan structures require 20% down payments with loan-to-value ratios around 80%, spread over 20-30 year terms. Most Chilean mortgages use fixed rates denominated in UF (Unidad de Fomento), Chile's inflation-indexed currency unit, providing protection against inflation for both lenders and borrowers.
Current financing conditions allow leveraged investors to achieve attractive returns when property yields exceed borrowing costs. With gross yields of 4.81% nationally and borrowing costs at 4.39%, investors can generate positive cash flow, though net yields after all expenses typically fall to 2.5-3.5%.
Credit conditions have tightened moderately since the pandemic, with banks requiring stronger income verification and debt-to-income ratios. Rising property prices have increased the absolute borrowing amounts required, potentially limiting access for some investors despite stable interest rates.
It's something we develop in our Chile property pack.
What are the average rents for short-term versus long-term rentals?
Chilean rental markets show distinct pricing patterns between long-term and short-term rental strategies, particularly in Santiago where most data is available.
Long-term rental rates in Santiago as of 2025:
- Studio apartments: $400-600 monthly
- One-bedroom units: $500-800 monthly
- Two-bedroom apartments: $700-1,200 monthly
- Three-bedroom properties: $900-2,000 monthly
Short-term vacation rentals through platforms like Airbnb can command 30-50% higher daily rates compared to equivalent long-term monthly rents. However, short-term rentals face significant occupancy risks, seasonal variations, and higher management costs that often offset the premium pricing.
Tourist-dependent areas like Viña del Mar and Valparaíso see the greatest short-term rental premiums during peak seasons, but also experience dramatic income drops during off-peak periods. Business-focused cities like Santiago and Concepción offer more stable short-term demand but face growing regulatory scrutiny.
What are example rental yields for typical properties in various locations?
Specific yield examples across Chile's major cities demonstrate the significant regional variations in investment returns.
| City | 1-Bedroom Yield | 2-Bedroom Yield | 3-Bedroom Yield |
|---|---|---|---|
| Santiago | 5.11% | 4.91% | 4.98% |
| Concepción | 5.98% | 5.51% | 5.33% |
| Antofagasta | 6.71% | 6.26% | 6.18% |
| Temuco | 5.56% | 4.64% | 4.55% |
| Viña del Mar | 4.21% | 4.04% | 3.66% |
These examples illustrate how one-bedroom properties consistently deliver the highest yields across all markets, while coastal cities like Viña del Mar produce the most modest returns. Northern mining cities like Antofagasta offer compelling yields across all property sizes due to limited housing supply and strong employment-driven demand.
What is the profile of typical renters for each property type and area?
Chilean rental markets serve distinct demographic segments that vary significantly by property type and geographic location.
Urban apartments attract primarily young professionals, university students, expatriate workers, and small families seeking proximity to employment centers and educational institutions. Santiago's rental market particularly benefits from a large professional workforce in finance, technology, and government sectors, creating steady demand for one and two-bedroom units.
Houses appeal mainly to established families, higher-income local residents, and expatriate families requiring more space and privacy. Mining cities like Antofagasta see strong demand from well-compensated mining industry workers who often prefer housing over apartments for longer-term assignments.
Commercial spaces serve small and medium enterprises in Class B and C buildings, while large corporations typically occupy Class A office buildings in premium business districts. Student-heavy cities like Concepción and Valparaíso maintain strong rental demand from university populations, supporting smaller apartment yields.
Coastal areas attract both permanent residents and seasonal renters, creating mixed demand patterns that can impact yield consistency throughout the year.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Chile versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the average vacancy rates by property type and region?
Chilean residential rental markets generally maintain low vacancy rates in sought-after urban areas, typically ranging from 2-4% annually.
Residential apartments in prime Santiago neighborhoods, Concepción's university areas, and Antofagasta's mining-adjacent zones experience minimal vacancy periods due to consistent demand. Well-located one and two-bedroom apartments often secure new tenants within 2-3 weeks of vacancy.
Commercial real estate faces significantly higher vacancy challenges, particularly in downtown Santiago where Class B office buildings have struggled since the 2019 social unrest. Class A offices in upscale business districts maintain lower vacancy rates but still exceed residential levels.
Regional variations show coastal cities experiencing seasonal vacancy fluctuations, while mining regions maintain consistently low rates due to limited housing supply relative to workforce demands. Larger properties and luxury units typically face longer vacancy periods due to smaller target markets and higher tenant qualification requirements.
Investors should budget for 1-2 weeks of annual vacancy in high-demand areas, but allow for longer periods in oversupplied markets or during economic downturns.
How do you calculate gross yield versus net yield in Chile?
Understanding the difference between gross and net yields is crucial for accurate investment analysis in Chilean real estate markets.
Gross yield calculation: (Annual rental income ÷ Total purchase price including fees) × 100. This simple calculation provides the baseline return percentage before considering any ownership expenses.
Net yield calculation: Gross yield minus all annual ownership expenses including maintenance (1-1.5% of property value), management fees (8-10% of rental income), property taxes (0.5-1.4% of assessed value), insurance ($200-600 annually), HOA fees ($80-250 monthly for condos), and vacancy allowance (typically 1-2 weeks annually).
The current gap between gross and net yields in Chile typically ranges from 1.5-2%, meaning a property with 5% gross yield will likely deliver 3-3.5% net yield. This gap can widen in buildings with high HOA fees or properties requiring significant maintenance.
Investors should always base decisions on net yield calculations rather than gross figures to understand true investment performance and cash flow potential.
Which property types and locations offer the smartest investment choices currently?
Chile's best investment opportunities as of September 2025 concentrate in specific geographic areas and property types that balance yield potential with demand stability.
Northern cities, particularly Antofagasta, offer the highest yields at approximately 6.2% driven by mining industry demand and limited housing supply. These markets provide strong cash flow potential but carry economic concentration risks tied to commodity prices.
Concepción represents an excellent balance of strong yields (5.5-5.6%) and diversified demand from university students, technology workers, and regional businesses. The city's economic stability and consistent rental demand make it particularly attractive for long-term investors.
Within Santiago, central and eastern neighborhoods offer the best combination of tenant demand and low vacancy rates, though yields are more modest. One-bedroom apartments in these areas provide optimal liquidity and tenant turnover advantages.
Smart investors should avoid coastal regions experiencing declining prices and yields due to environmental and demographic pressures, while focusing on economically diverse cities with strong employment growth and housing undersupply.
It's something we develop in our Chile property pack.
How have rents and yields changed compared to previous years?
Chilean rental markets have experienced significant changes over the past five years, with rents rising faster than property values in most regions.
Rents increased cumulatively by 15-17% between 2021 and 2025, with particularly strong growth of 7.8% in 2023 and 5.8% in 2022. However, property sales prices have generally outpaced rental growth, creating a yield compression effect across most markets.
Gross rental yields have declined from approximately 5% in 2022 to the current national average of 4.8% in 2025. This compression reflects increased investor interest in Chilean real estate and rising property values relative to rental income growth.
Regional patterns show southern and coastal areas experiencing more significant yield declines due to environmental concerns and demographic shifts, while northern mining regions have maintained more stable yield levels due to consistent industrial demand.
The yield compression trend reflects broader economic factors including inflation, construction cost increases, and changing investor preferences toward Chilean real estate as a stable investment destination.
What are the forecasts for rental yields over the next decade?
Chilean rental yield forecasts suggest continued modest compression over the medium term, with yields expected to remain stable around 4.7-4.8% through 2026.
Short-term projections for 2026 anticipate yields remaining largely stable or declining marginally, barring significant macroeconomic disruptions or policy changes. The current balance between rental demand and property price appreciation supports this stability.
Five-year forecasts through 2030 suggest potential for further yield compression unless rental demand growth significantly accelerates relative to property price increases. Market analysts expect yields to remain within the 4.5-5% range for most major cities during this period.
Ten-year projections through 2035 face substantial uncertainty due to potential changes in government policy, economic growth patterns, demographics, and global investment flows. Long-term yield performance will largely depend on Chile's broader economic development and urbanization trends.
Investors should focus on markets with strong underlying demand fundamentals rather than relying solely on yield projections, as local economic conditions will increasingly drive individual market performance.
How do Chile's rental yields compare internationally?
Chile's rental yields position the country competitively within Latin America while trailing higher-yielding emerging markets globally.
Santiago's 4.6-5% yields exceed most developed world capitals, significantly outperforming London (~3%) and New York (~2.7%), but fall below high-yielding cities like Istanbul (7-8%). Within Latin America, Santiago performs comparably to Lima and trails Panama City but exceeds most Brazilian and Argentinian urban markets.
Chile's appeal extends beyond pure yield calculations to include political stability, legal framework strength, and currency stability relative to regional peers. These factors attract international investors willing to accept slightly lower yields for reduced investment risks.
Regional yield comparisons show Chilean markets offering better risk-adjusted returns than many emerging market alternatives, particularly when considering factors like property rights protection, transaction transparency, and exit liquidity.
International investors often view Chilean yields as attractive within the context of portfolio diversification and Latin American exposure, rather than purely on yield maximization strategies.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Chilean rental yields offer attractive returns for investors seeking Latin American exposure, with northern mining cities delivering the highest yields while Santiago provides stability and liquidity.
Success in Chilean rental investments requires understanding regional economic drivers, property size preferences, and the significant impact of ongoing costs on net returns.
Sources
- Global Property Guide - Chile Rental Yields
- Global Property Guide - Chile Price History
- The LatinVestor - Chile Price Forecasts
- The LatinVestor - Santiago Property
- IMF - Chile Economic Analysis
- The LatinVestor - Buy Land Chile
- Global Property Guide - Chile Taxes and Costs
- The Global Economy - Chile Mortgage Rates
-Chile Real Estate Market Analysis