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Thinking about buying a 3-bedroom apartment in Providencia? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other communes like Las Condes or Ñuñoa where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Chile Property Pack.
Will property prices increase in Chile in 2025?
Yes, property prices in Chile are expected to rise in 2025, driven by a combination of economic recovery and increased demand for housing.
Backed by our fresh, in-depth market analysis, we’re confident that Chile remains an attractive market for both domestic and international investors.
While there are challenges such as inflation and potential political changes, the main drivers behind Chile’s property price growth are strong and persistent.
Demand, particularly in urban areas like Santiago, continues to outpace supply, making significant price drops unlikely. Additionally, Chile's stable economic environment and growing middle class contribute to a positive outlook for the real estate market.
Signals pointing to a property price increase in Chile
Here are some factors suggesting prices could increase:
The Chilean economy is expected to recover steadily from the impacts of the pandemic, leading to increased consumer confidence and higher demand for housing.
Urbanization trends continue to drive demand for housing in major cities, particularly Santiago, where the population is growing and housing supply is limited.
Government initiatives aimed at supporting first-time homebuyers and affordable housing projects are likely to stimulate demand in the housing market.
Foreign investment in Chilean real estate is expected to rise, attracted by the country's stable economic and political environment, further boosting demand.
The development of new infrastructure projects, such as improved transportation networks, is likely to enhance property values in connected areas.
A growing middle class with increasing purchasing power is expected to drive demand for residential properties, particularly in urban centers.
The Chilean government’s focus on sustainable and energy-efficient housing is likely to increase the value of properties that meet these criteria.
Signals pointing to a property price decrease in Chile
Here are some factors suggesting prices could fall:
Rising inflation could erode purchasing power, making it more difficult for potential buyers to afford homes, thereby reducing demand.
Potential political instability or policy changes could create uncertainty in the real estate market, deterring investment and slowing price growth.
Higher interest rates could make mortgage financing more expensive, limiting the ability of buyers to enter the market and potentially cooling demand.
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If property prices go up in Santiago, Chile, how much would they increase by?
If real estate prices in Santiago were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Santiago appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Providencia for 150,000,000 CLP today, don't be surprised if it's priced between 154,500,000 and 160,500,000 CLP this time next year.
To give you a better understanding, here is a table that shows 7 types of Santiago real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (CLP) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Las Condes (60 sqm) | 150,000,000 CLP | 154,500,000 CLP | 157,500,000 CLP | 160,500,000 CLP |
| Modern Apartment in Ñuñoa (75 sqm) | 200,000,000 CLP | 206,000,000 CLP | 210,000,000 CLP | 214,000,000 CLP |
| Luxury Penthouse in Vitacura (100 sqm) | 500,000,000 CLP | 515,000,000 CLP | 525,000,000 CLP | 535,000,000 CLP |
| Studio in Santiago Centro (30 sqm) | 80,000,000 CLP | 82,400,000 CLP | 84,000,000 CLP | 85,600,000 CLP |
| Loft in Bellavista (80 sqm) | 250,000,000 CLP | 257,500,000 CLP | 262,500,000 CLP | 267,500,000 CLP |
| Townhouse in La Reina (150 sqm) | 600,000,000 CLP | 618,000,000 CLP | 630,000,000 CLP | 642,000,000 CLP |
| Investment Property in Providencia (50 sqm) | 120,000,000 CLP | 123,600,000 CLP | 126,000,000 CLP | 128,400,000 CLP |
Everything you need to know is included in our Property Pack for Chile
If real estate prices go up in Santiago, which areas are likely to see the biggest increases?
Today, people who want to move to Santiago want the charm, but they also want modern conveniences and vibrant social scenes, which Lastarria delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Barrio Italia has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Santiago market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Lastarria | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Vitacura | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Santiago. |
| Providencia | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Las Condes | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Ñuñoa | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Bellavista | Medium | Investment in local infrastructure, such as the extension of metro lines and renovation of historic areas, is boosting long-term value. |
| Barrio Italia | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Lo Barnechea | Medium-High | Its proximity to Santiago, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Recoleta | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Sanhattan | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Centro Histórico | High | Upcoming restoration of historic buildings and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Chile?
In 2025, Chile's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Santiago.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Santiago and other major cities like Valparaíso and Concepción are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Santiago, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Chile's commitment to sustainability, particularly in its capital, is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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