Authored by the expert who managed and guided the team behind the Chile Property Pack
Yes, the analysis of Santiago's property market is included in our pack
As we look towards 2025, Santiago's real estate market is poised for intriguing developments that could shape the city's future landscape.
What trends are emerging? How are prices expected to shift? What factors are driving these changes?
In this article, we'll delve into 12 key market data points that will provide a comprehensive overview of Santiago's real estate scene.
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
12 Key Market Data Points About the Real Estate Market in Santiago
Here is a detailed analysis of the real estate market in Santiago, focusing on average rents, yields, price per square meter (sqm), and square foot (sqft), among other metrics.
- Average Rent for Apartments:
The average rent for a one-bedroom apartment in Santiago's city center is approximately CLP 400,000 to CLP 600,000 per month (around USD 500 to USD 750). In the suburbs, this can drop to CLP 300,000 to CLP 450,000 (USD 375 to USD 560). Rent prices can vary significantly based on location, amenities, and proximity to public transport.
- Rental Yields:
Rental yields in Santiago typically range from 4% to 6% annually. Properties in prime locations with high demand can achieve yields at the higher end of this range, while those in less desirable areas may see lower returns.
- Price Per Square Meter:
The average price per square meter in Santiago's city center is approximately CLP 2,000,000 to CLP 3,500,000 (USD 2,500 to USD 4,375). In suburban areas, prices can range from CLP 1,200,000 to CLP 2,000,000 (USD 1,500 to USD 2,500). These prices reflect the demand for urban living and the premium placed on central locations.
- Price Per Square Foot:
Converting the price per square meter to square foot, the average price in the city center is approximately CLP 186,000 to CLP 325,000 per sqft (USD 232 to USD 406). In the suburbs, it ranges from CLP 111,000 to CLP 186,000 per sqft (USD 139 to USD 232).
- Market Trends:
Over the past year, Santiago has seen a moderate increase in property prices, driven by demand for urban living and limited supply in key areas. However, economic factors and interest rates can influence future trends.
- Vacancy Rates:
Vacancy rates in Santiago's prime areas are relatively low, typically around 3% to 5%. This indicates a strong demand for rental properties, particularly in well-connected neighborhoods.
- New Developments:
There is a steady pipeline of new residential developments in Santiago, particularly in emerging neighborhoods. These projects often offer modern amenities and are priced competitively to attract buyers and renters.
- Foreign Investment:
Santiago remains an attractive market for foreign investors due to its stable economy and favorable property laws. However, investors should be aware of potential currency fluctuations and local regulations.
- Financing Options:
Local banks offer a range of mortgage products, with interest rates typically ranging from 3% to 5%. Foreign buyers may face additional requirements, such as higher down payments or proof of income.
- Property Taxes:
Property taxes in Santiago are relatively low compared to other major cities, generally around 0.5% to 1% of the property's assessed value. This makes it an attractive market for long-term investment.
- Cost of Living:
The cost of living in Santiago is moderate, with housing being one of the most significant expenses. Utilities, transportation, and groceries are reasonably priced, contributing to the city's overall affordability.
- Quality of Life:
Santiago offers a high quality of life, with excellent public services, a vibrant cultural scene, and numerous parks and recreational areas. These factors contribute to the city's appeal for both residents and investors.
Get fresh and reliable information about the market in Chile
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What You Need to Know Before Investing in Santiago's Real Estate Market (2025)
What is the average price per square meter in Santiago's real estate market?
As of 2025, the average price per square meter in Santiago is approximately USD 2,500.
This figure represents a 5% increase from the previous year, indicating a steady growth in property values.
Prices can vary significantly depending on the neighborhood, with some areas reaching up to USD 4,000 per square meter.
Want to explore this further?
Which neighborhoods in Santiago are experiencing the fastest growth?
Neighborhoods such as Ñuñoa and Providencia are currently experiencing the fastest growth in Santiago.
This growth is driven by increased demand for residential properties and improved infrastructure developments.
Investors are particularly interested in these areas due to their proximity to the city center and vibrant cultural scene.
What is the rental yield for residential properties in Santiago?
The average rental yield for residential properties in Santiago is around 4.5%.
This yield is considered attractive compared to other major cities in Latin America.
Investors should note that yields can vary based on property type and location within the city.
Want to explore this further?
How has the demand for real estate in Santiago changed over the past year?
Demand for real estate in Santiago has increased by 8% over the past year.
This surge is attributed to a growing population and a stable economic environment.
Foreign investors are also showing increased interest, contributing to the rising demand.
What are the most common types of properties available in Santiago?
The most common types of properties available in Santiago include apartments, single-family homes, and townhouses.
Apartments are particularly popular in urban areas, while single-family homes are more common in suburban neighborhoods.
Townhouses offer a middle ground, providing more space than apartments but requiring less maintenance than standalone homes.
Buying real estate in Chile can be risky
An increasing number of foreign investors are showing interest in Chile. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What are the current trends in Santiago's luxury real estate market?
The luxury real estate market in Santiago is seeing a rise in demand for high-end apartments and penthouses.
Buyers are increasingly interested in properties with modern amenities and sustainable features.
Neighborhoods like Vitacura and Las Condes are particularly popular among luxury buyers.
How does Santiago's real estate market compare to other major cities in Latin America?
Santiago's real estate market is considered one of the most stable and mature in Latin America.
Compared to cities like Buenos Aires and Lima, Santiago offers a higher average price per square meter but also higher rental yields.
The city's political stability and economic growth make it an attractive option for international investors.
Want to explore this further?
What financing options are available for purchasing property in Santiago?
Buyers in Santiago have access to a variety of financing options, including traditional mortgages and government-backed loans.
Interest rates for mortgages are currently averaging around 3.5%, which is relatively low compared to historical rates.
Foreign buyers may face additional requirements, such as higher down payments or proof of income.
Want to explore this further?
What are the legal considerations for foreign investors in Santiago's real estate market?
Foreign investors in Santiago must comply with local regulations, including obtaining a tax identification number (RUT).
There are no restrictions on foreign ownership of property, but legal advice is recommended to navigate the process.
Investors should also be aware of potential tax implications, such as capital gains tax on property sales.
Want to explore this further?
=> What are the legal requirements for buying property in Santiago?
What impact has urban development had on Santiago's real estate market?
Urban development in Santiago has led to increased property values and improved infrastructure in many areas.
Projects such as new metro lines and commercial centers have made certain neighborhoods more attractive to buyers.
However, rapid development can also lead to challenges, such as increased traffic and higher living costs.
How is the sustainability trend affecting Santiago's real estate market?
Sustainability is becoming a key consideration for both developers and buyers in Santiago's real estate market.
Properties with eco-friendly features, such as solar panels and energy-efficient appliances, are in high demand.
Developers are increasingly incorporating green spaces and sustainable materials into new projects.
What are the future prospects for Santiago's real estate market?
The future prospects for Santiago's real estate market are positive, with continued growth expected in both residential and commercial sectors.
Factors such as economic stability, population growth, and urban development will likely drive this growth.
Investors should keep an eye on emerging neighborhoods and infrastructure projects for potential opportunities.