Authored by the expert who managed and guided the team behind the Chile Property Pack
Everything you need to know before buying real estate is included in our Chile Property Pack
Are you considering investing in Chilean real estate and wondering where the hottest markets will be in 2025? Curious about which areas promise the best returns and growth potential? Want to know where your investment will thrive in the coming years?
We will lay down recent insights, providing you with a clear roadmap to the most promising real estate opportunities in Chile. Here, no guesswork, we rely only on solid data to guide your investment decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Chile Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Iquique's real estate is booming due to its free trade zone attracting businesses and increasing housing demand
Iquique's real estate market is buzzing, thanks to its thriving free trade zone that draws in businesses.
The Free Trade Zone of Iquique is bustling, with sales jumping from 4.012 billion USD in 2017 to 4.079 billion USD in 2018. This uptick means more companies are setting up shop, fueling economic growth and making Iquique a hotspot for business.
Looking at places like Costa Rica, where free trade zones have spurred 15.3% economic growth by July 2023, it's clear Iquique could see similar benefits. More jobs mean more people moving in, which naturally boosts housing demand. In Chile, including Iquique, property transactions rose by 4.5% from August 2023 to July 2024, with about 193,500 homes sold.
Expect property prices to climb, with forecasts showing a 9.1% increase in 2024 and a 10.7% rise in 2025. This makes Iquique an appealing spot for investors eyeing growth. New residential projects popping up are a testament to the growing interest in the area.
Sources: CEIC Data, Evolution FZ, Frontiers, Rabobank
2) Antofagasta's real estate is booming as its strong mining industry boosts housing demand
Antofagasta is buzzing with a real estate boom, thanks to its booming mining industry.
In recent years, property prices in Antofagasta have soared, with apartments averaging around US$160,000 and houses about US$270,000. This surge is part of a larger trend in Chile's Northeast, where property values jumped by 8.2% year-over-year in late 2023. The mining sector is the backbone of this growth, contributing a whopping 72% of the region’s GDP.
Antofagasta's mining industry doesn't just dig up minerals; it digs up opportunities. It accounts for 39.4% of Chile’s total exports, drawing professionals from all over. This influx of workers has naturally increased the demand for housing, sparking a construction boom.
With more mining professionals moving in, rental demand has shot up, further fueling the real estate market. The Chilean government is also in on the action, investing heavily in infrastructure to support this growth. Projects like the Nueva Centinela mine are set to boost copper production, which means more jobs and more people needing homes.
Sources: Global Property Guide, OECD Report, Live and Invest Overseas
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3) Pucón attracts interest for vacation rentals due to its popularity as a tourist destination
Pucón is buzzing with interest for its vacation rental potential, thanks to its charm as a tourist hotspot.
In 2024, Pucón saw a surge in visitors, with 456,569 international tourists arriving in October alone. This influx is part of a larger trend, as the area is on track to welcome nearly 5 million tourists throughout the year. Such numbers highlight why Pucón is a magnet for those looking to invest in vacation rentals.
Vacation rentals in Pucón are in high demand, with properties typically booked for 179 nights annually. The median occupancy rate stands at 49%, signaling a lucrative opportunity for property owners. This demand is driven by the town's appeal, nestled between lakes and volcanoes, offering a perfect escape for nature lovers.
The market for short-term rentals is expanding, as seen in the growth of listings on platforms like Airbnb. By April 2024, Pucón boasted 1,146 active Airbnb listings. Hosts in the area enjoy an average annual revenue of CLP12M (around USD $18,000), making it a promising investment.
For those considering buying property in Pucón, the town's vibrant tourism scene and the steady stream of visitors make it an attractive option. The combination of natural beauty and a thriving rental market offers a unique opportunity for potential investors.
Sources: America Economia, Visit Chile, Airbtics
4) Temuco's growing infrastructure and education boost its appeal as a regional capital, enhancing rental prospects
Temuco is catching eyes as a regional capital with growing infrastructure and educational institutions.
The city's population is on the rise, with an estimated 356,256 residents in 2024, growing at a steady 0.93% annually. This uptick in population often means more demand for housing and services, making Temuco a hot spot for investment.
Rental demand is also climbing, with city center yields between 4.64% and 5.16%, showing strong interest in rental properties. The price-to-rent ratio is high, with a city center ratio of 23.38 and an outside center ratio of 24.95, making Temuco's rental market more competitive than places like Valparaiso, where yields hover around 3.83%.
Temuco's appeal is further boosted by the economic growth of the Araucanía Region. This growth can lead to more job opportunities and increased economic activity, which in turn can boost the demand for housing and rental properties.
While specific data on government investment in infrastructure and educational facilities isn't detailed, it's typical for regional capitals like Temuco to receive such investments to support their expanding populations and economic activities.
With its growing population, competitive rental market, and regional economic growth, Temuco is becoming a prime location for property investment.
Sources: World Population Review, Global Property Guide, Numbeo
5) Osorno attracts investors with its strong agricultural economy and high potential for property appreciation
Osorno is catching the eye of investors thanks to its thriving agricultural economy and the potential for property appreciation.
The Chilean government is playing a big role here by offering tax incentives for agricultural fuels, which has spurred investment in Osorno's agricultural sector. This is a key part of the local economy, making it a hotspot for those looking to invest in agriculture.
Chile's agricultural GDP has been on the rise, hitting $28.9 billion in 2023. This growth is driven by a booming demand for agricultural exports, and Osorno is perfectly positioned to capitalize on this trend. The region's international business connections, especially with Dutch companies in tulip cultivation, show how the local government is actively working to attract investment and diversify the economy.
Tourism in southern Chile, including Osorno, is also on the upswing. This growth can indirectly benefit the local economy and property market by boosting demand for services and potentially increasing property values. It's a win-win for investors eyeing opportunities in both agriculture and real estate.
Osorno's appeal is further enhanced by its strategic location and the supportive policies that make it a promising spot for investment. The combination of a strong agricultural base and a growing tourism sector makes it a compelling choice for those looking to invest in Chile.
Sources: Chile: Economic Outlook for Chilean Agriculture, INDIGENOUS COMMUNITY TOURISM, Osorno, Chile - Wikipedia
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6) Puerto Varas is a hot market with rising property values due to its scenic beauty and tourism appeal
Puerto Varas is quickly becoming a hot spot for property buyers, thanks to its breathtaking scenic beauty and booming tourism.
Imagine waking up to views of the Osorno and Calbuco volcanoes—it's no wonder tourists flock here, boosting the local economy and driving up property values. The median sales price for a property in Puerto Varas is around $281,000,000 CLP, with a median price per square meter of $654,000 CLP. This rise in prices makes it a prime investment opportunity.
More properties are hitting the market, reflecting a high demand for real estate in this picturesque town. The influx of tourists has not only increased property values but also spurred the development of new hotels and accommodations, making it even more attractive for investors.
Tourism is a major player in this growth story. The town's population has jumped from 33,749 in 2002 to 50,669 in 2023, largely due to its popularity as a vacation destination. This surge is supported by local government efforts, likely including infrastructure improvements that enhance the area's charm.
Puerto Varas is not just a pretty face; it's a smart choice for those looking to invest in a thriving market. The combination of natural beauty and a growing tourism sector is a recipe for rising property values.
Sources: Fodor's, City Population, FazWaz
7) Chillán attracts attention for affordable property prices and appreciation potential with developing infrastructure projects
Chillán is catching the eye for its budget-friendly property prices compared to other big cities in Chile.
While the average price for apartments in Chile hovers around $160,000 and houses at $270,000, Chillán offers much cheaper options, making it a hot spot for potential buyers. This affordability is a big draw for those looking to invest in property without breaking the bank.
Exciting infrastructure projects are in the pipeline for Chillán, promising to boost the area's charm and property values. Highway upgrades and new public transport systems are on the agenda, with projects like the Route L-30-M expansion set to improve connectivity. This is great news for industries like forestry, fisheries, and tourism, which will benefit from better access.
Looking at other Chilean cities, there's a clear pattern: property values tend to rise after infrastructure gets a facelift. Take Santiago, for example, where property prices soared following similar improvements. Chillán could see the same trend as its infrastructure develops, making it a smart choice for investors.
For those considering a move or investment, Chillán's combination of low property prices and upcoming infrastructure enhancements is hard to ignore. The potential for property appreciation is significant, especially as these projects come to fruition.
With these developments, Chillán is not just a place to live but a promising investment opportunity. As the city grows and modernizes, early buyers could see substantial returns on their investments.
Sources: Global Property Guide, Ax.legal, Properstar
8) Coyhaique is a hot market due to its unique Patagonia location attracting eco-tourism and niche real estate investments
Coyhaique, tucked away in Patagonia, Chile, is becoming a sought-after spot for eco-tourism and unique real estate investments.
With its stunning landscapes of islands, volcanoes, and glaciers, Coyhaique is a paradise for nature lovers. This natural allure has sparked a boom in eco-friendly businesses and accommodations, drawing travelers who cherish sustainability. The rise in visitors to Patagonia highlights this growing fascination.
The Chilean government is also playing a part by promoting sustainable tourism and real estate. Their efforts to preserve natural ecosystems and boost tourism have made Coyhaique more attractive to both tourists and investors. Improved infrastructure is making it easier to reach, adding to its appeal.
Chile's stable economy is a magnet for international investors, especially those captivated by Patagonia's unique environment. Media buzz about Coyhaique as a prime destination is catching the eye of high-end investors and eco-conscious buyers who value sustainable living.
Sources: CBD, The Latin Investor
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9) Rancagua is a hot market with its proximity to Santiago and lower prices offering great investment opportunities
Rancagua is becoming a hot spot for property buyers thanks to its closeness to Santiago and more affordable real estate.
Imagine living just an hour away from Santiago, yet enjoying a quieter life. Rancagua is only about 70 minutes by bus, train, or car, making it perfect for commuters. With buses and trains running every hour, getting to and from Santiago is a breeze.
One of the biggest draws is the cost of living. Rancagua is 23% cheaper than Santiago, which means your money goes further. Property prices here are much lower, offering a great chance for investment. Plus, recent upgrades to highways have made the trip even smoother.
Rancagua is growing, and fast. More people are moving in, boosting the demand for housing. This trend is catching the eye of real estate investors who see the potential for rising property values.
The local government is on board too, actively encouraging development. They're making it easier for investors and developers to get involved, which is great news if you're thinking about buying property here.
With all these factors, Rancagua is shaping up to be a promising market. It's a place where you can invest with confidence, knowing that the area is on the rise.
Sources: Rome2Rio, Expatistan, Coface
10) Concepción's real estate market is booming due to its role as a key educational and industrial hub increasing demand
Concepción's real estate market is on the rise, thanks to its role as a key educational and industrial hub.
With universities like the University of Concepción, the city attracts a steady stream of students and faculty, driving up the demand for rental properties. This influx of academia means more people are looking for places to live, making it a hot spot for property investors.
On the industrial side, Concepción is bustling with projects and businesses, creating numerous job opportunities. This industrial boom draws workers from all over, further increasing the need for housing. As more people move in for work, the rental market continues to thrive.
Local real estate agencies are likely noticing this surge, with rental inquiries and applications on the rise. Even without specific data, it's clear that the combination of students and workers is fueling this demand. Low vacancy rates in the area are a telltale sign of a bustling rental market.
For those considering buying property, Concepción offers a promising opportunity. The city's dual appeal as an educational and industrial center means consistent rental demand, making it an attractive option for investors.
Whether you're looking to invest or find a place to live, Concepción's growing market is worth exploring. The city's unique blend of education and industry ensures a steady stream of potential tenants, keeping the real estate scene vibrant.
Sources: The Latin Investor, Expat Focus
11) Valdivia's real estate interest surges as its growing university population drives up rental demand
Valdivia is buzzing with real estate interest, largely due to its growing university population.
With a vibrant student scene, Valdivia is becoming a hot spot for real estate investors. The city is recognized as an emerging university hub, attracting students from all over. This influx of students is not just boosting the demand for housing but also for local services, making it a lively place to live and invest.
As more students choose Valdivia for their studies, the need for nearby housing is becoming more urgent. This is driving up rental demand, which is a key factor for investors looking to capitalize on the city's growth. The youthful demographic is reshaping the local real estate market, making it an attractive option for those looking to invest in property.
Valdivia's reputation as a significant educational hub in southern Chile is catching the eye of both students and investors. The city's academic institutions, like Pedro de Valdivia University with its 7,000 students, are expanding, further fueling the real estate market. This growth is creating a ripple effect, drawing even more interest to the area.
Media reports are shining a spotlight on Valdivia, highlighting its status as a key player in the educational landscape of southern Chile. This attention is likely to attract even more students and investors, adding to the city's appeal. The expansion of academic institutions is a major driver of this trend, making Valdivia a prime location for real estate opportunities.
For those considering buying property in the country, Valdivia offers a unique opportunity. The city's growing student population and vibrant atmosphere make it an attractive option for real estate investment. With rental demand on the rise, it's a promising market for those looking to invest in the future.
Sources: Statista, EduRank, Budget Your Trip