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Everything you need to know before buying real estate is included in our Chile Property Pack
Where are the best places to invest in Chile right now? Is Santiago still the top pick, or are cities like Valparaíso, Concepción, and La Serena gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Chile and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Iquique is booming with 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 is booming with real estate interest driven by its strong mining industry and rising 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
We have made this infographic to give you a quick and clear snapshot of the property market in Chile. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Pucón is gaining attention for its vacation rental potential as a popular 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 is gaining attention as a regional capital with expanding infrastructure and educational institutions, boosting 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 is attracting investors with its agricultural economy and 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 gaining attention for its scenic beauty and tourism appeal, driving up property values
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 is attracting interest with its affordable property prices and potential for growth as infrastructure projects progress
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 gaining attention for its unique Patagonian location, attracting eco-tourism and niche real estate investments
Coyhaique, tucked away in Patagonia, Chile, is becoming a hot spot for real estate.
With its stunning landscapes of islands, volcanoes, and glaciers, Coyhaique is a magnet for eco-tourism. This natural allure has led to a boom in eco-friendly businesses and accommodations, drawing in travelers who love nature and sustainability.
The Chilean government is backing this trend by offering incentives for sustainable tourism and real estate projects. These efforts are part of a national strategy to protect ecosystems while boosting the economy, making Coyhaique even more appealing to tourists and investors.
Chile's stable economy is a big draw for international investors, especially in unique areas like Patagonia. Media buzz has painted Coyhaique as a must-see for nature enthusiasts and real estate seekers, driving up property demand.
Improved infrastructure has made Coyhaique more accessible, attracting both tourists and investors. Local real estate agents note a surge in interest for eco-friendly and energy-efficient properties, reflecting a global shift towards sustainable living.
Source: CBD
We made this infographic to show you how property prices in Chile compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Rancagua is gaining interest for its proximity to Santiago and affordable property prices, offering strong 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 is booming with its educational and industrial hub status driving rental demand
Concepción's real estate market is on the rise, largely due to its role as a major educational and industrial hub.
The city is home to prestigious institutions like the University of Concepción, which attracts a steady stream of students and faculty. This influx of people boosts the demand for rental properties, as they need places to live during their time in the city. It's not just students; visiting professors and researchers also contribute to this demand.
Concepción's industrial scene is thriving, with numerous projects and businesses setting up shop. This industrial boom creates job opportunities, drawing more people to the area. As a result, the need for housing has surged, with local real estate agencies seeing a spike in rental inquiries.
Public transportation in Concepción has seen significant improvements, enhancing the city's connectivity. This makes it easier for residents to commute, increasing the city's appeal to potential newcomers. Better transport links mean people can live further from their workplace, expanding the areas where they might consider renting.
New residential and commercial developments are popping up to meet the growing demand. These projects not only provide more housing options but also improve the overall livability of the city. As the population grows, these developments are crucial in accommodating the influx of new residents.
With its combination of educational prestige and industrial growth, Concepción is becoming a hotspot for those looking to rent. The city's evolving infrastructure and expanding job market make it an attractive option for many. Local real estate agents are likely noticing this trend, with more people eager to find a place in this bustling city.
Sources: Global Property Guide, Expat Focus
11) Valdivia is gaining interest with its growing university population driving 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
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.