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Property prices in Santiago are expected to continue rising in 2026, with forecasts showing a 3-7% increase following steady growth patterns from recent years.
The Santiago residential market remains robust with apartment prices averaging US$2,494 per square meter as of September 2025, while rental yields hold steady at 4.64%. With falling mortgage rates, stable employment, and continued foreign investment, the fundamentals support further property appreciation through 2026.
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Santiago property prices are forecast to increase 3-7% in 2026, driven by economic stability and infrastructure investments.
Current apartment prices average US$2,494/m² with stable rental yields of 4.64% and improving mortgage conditions supporting buyer demand.
| Metric | Current Value (Sept 2025) | 2026 Projection |
|---|---|---|
| Average Apartment Price/m² | US$2,494 | US$2,569 - US$2,669 (+3-7%) |
| Average House Price/m² | US$2,550 | US$2,627 - US$2,729 (+3-7%) |
| Rental Yield | 4.64% | 4.5% - 4.7% (stable) |
| Mortgage Rate | 4.75% | 4.00% (benchmark rate) |
| Unemployment Rate | 8.0% | 7.5% |
| Population | ~7,000,000 | ~7,050,000 (+0.7%) |
| Properties Sold <90 Days | 80-85% | 80-85% (maintained) |
What's the current average price per square meter for apartments and houses in Santiago right now, and how has that changed over the past five years?
As of September 2025, apartments in Santiago average US$2,494 per square meter in prime areas, with an overall range of US$2,300 to US$2,500 per square meter.
Houses command a median price of approximately CLP 2,234,593 per square meter, which translates to about US$2,550 per square meter. This positions Santiago's residential market among the most expensive in Latin America, reflecting the city's status as Chile's economic and political center.
Over the past five years, Santiago's property market has experienced significant growth with notable volatility. The market saw a post-pandemic surge in 2021 with a 12% increase, followed by the peak year of 2022 when prices jumped 18.4% due to high demand and inflation pressures. The market then stabilized in 2023 with a more moderate 5.3% increase, continued with 3-4% growth in 2024, and returned to 5% growth in 2025.
The cumulative price increase over this five-year period ranges from 20% to 25%, representing substantial appreciation that has outpaced inflation and wage growth. This trend reflects Santiago's strong fundamentals, including population growth, urbanization, and limited land availability in prime areas.
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How much did property prices in Santiago increase year over year between 2020 and 2025 in percentage terms?
| Year | Annual Price Increase | Market Context |
|---|---|---|
| 2021 | +12% | Post-pandemic demand surge |
| 2022 | +18.4% | Peak demand period with inflation pressures |
| 2023 | +5.3% | Market stabilization phase |
| 2024 | +3-4% | Moderate growth with economic normalization |
| 2025 | +5% | Steady growth with infrastructure investments |
| Total (2020-2025) | +20-25% | Cumulative appreciation over five years |
What is the forecasted average price per square meter in Santiago in 2026 according to major banks or real estate analysts?
Major banks and real estate analysts forecast Santiago property prices to increase by 3% to 7% in 2026, driven by economic stability and ongoing infrastructure investments.
This translates to apartment prices reaching approximately US$2,569 to US$2,669 per square meter by the end of 2026, up from the current US$2,494 per square meter. For houses, the projected range would be US$2,627 to US$2,729 per square meter, compared to the current US$2,550 per square meter.
The more conservative 3% growth scenario assumes continued economic uncertainty and potential interest rate fluctuations, while the 7% scenario reflects optimistic projections based on infrastructure developments and sustained foreign investment. Most analysts lean toward the middle of this range, expecting around 5% growth similar to 2025 levels.
These forecasts are supported by several factors including the completion of major transit projects, stable political environment, and Chile's position as a regional investment hub. However, analysts note that global economic conditions and local policy changes could influence these projections.
How do rental yields in Santiago compare to property prices today, and what's the trend in yields over the past three years?
Santiago's average rental yield stands at 4.64% as of September 2025, with apartments typically generating yields between 4.08% and 5.24% depending on location and property size.
This yield compares favorably to the national average of 4.81% for Q3 2025, positioning Santiago as competitive within Chile's rental market. When compared to property prices, these yields indicate that investors can expect reasonable returns despite the city's high property values.
Over the past three years from 2023 to 2025, rental yields have remained remarkably stable, fluctuating only within a narrow band of 4.6% to 4.8%. This stability indicates a balanced relationship between rental income growth and property price appreciation, suggesting the market hasn't become overheated from an investment perspective.
The consistent yield pattern reflects steady rental demand from Santiago's growing population and limited rental supply in prime locations. Unlike markets where rapid price appreciation erodes yields, Santiago has maintained investor appeal through balanced rental and capital growth.
How many new housing units are expected to be built in Santiago by 2026, and how does that compare to estimated demand?
Santiago sold 268,000 housing units in 2025, indicating robust market activity and development pipeline capacity.
For 2026, sector estimates suggest continued growth parallel to urbanization trends, though specific unit supply projections require more granular government data from the anticipated 2024 census results. The construction industry is gearing up for increased development based on current demand signals and urban planning initiatives.
Demand factors remain strong, driven by peripheral expansion, internal migration from other Chilean regions, and government policies designed to spur new developments. The ongoing urbanization process continues to bring residents from rural areas to Santiago, creating sustained housing demand.
The balance between supply and demand appears relatively tight, with new construction struggling to keep pace with household formation and migration patterns. This supply-demand dynamic supports the continued price appreciation forecasts for 2026, as limited new supply meets steady demand growth.
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What's the projected population growth of Santiago by 2026, and how many additional households will that likely create?
Santiago's population is estimated at approximately 7,000,000 residents as of 2025, with an annual growth rate of about 0.7%.
By 2026, this growth rate projects Santiago's population to reach approximately 7,050,000 residents, representing an increase of around 50,000 people. This steady growth reflects both natural population increase and continued migration from other Chilean regions attracted by employment and educational opportunities.
The additional households created by this population growth, combined with urban migration and new family formation patterns, could add tens of thousands of new households to Santiago by 2026. Migration patterns show young professionals and families moving to Santiago for career opportunities, typically forming independent households.
This household formation rate significantly impacts housing demand, as new households require separate housing units regardless of whether they choose to rent or buy. The demographic trends suggest sustained pressure on Santiago's housing market through 2026 and beyond.
How much did mortgage interest rates in Chile rise or fall from 2020 to 2025, and what are banks forecasting for 2026?
Chilean mortgage interest rates experienced dramatic fluctuations between 2020 and 2025, reaching historic lows of 1.99% in 2020 before climbing above 5% in late 2023.
As of July 2025, mortgage rates have moderated to 4.75% and are trending lower, providing improved affordability conditions for homebuyers. This represents a significant improvement from the peak rates experienced in 2023 when borrowing costs constrained buyer activity.
For 2026, banks forecast benchmark rates to average around 4.00%, while bank lending rates are expected to average 7.96%. This divergence reflects the spread banks maintain between their funding costs and lending rates, though mortgage rates specifically may be more competitive due to market competition.
The declining rate environment should support increased buyer activity and property demand through 2026, as improved affordability brings more buyers into the market. Lower borrowing costs also enable buyers to qualify for larger loan amounts, potentially supporting higher property prices.
What percentage of Santiago residents own versus rent homes today, and how has that balance shifted since 2015?
Approximately 60% of Santiago residents own their homes as of 2025, positioning the city slightly below the OECD average but maintaining one of the highest homeownership rates in Latin America.
Since 2015, the homeownership rate has experienced a slight decline as urban trends favor increased rental flexibility, particularly among younger demographics. The 2015 homeownership rate was higher, reflecting a long-term shift toward renting driven by urbanization and lifestyle preferences.
Government subsidies and homeownership promotion policies have helped maintain robust ownership levels despite these demographic trends. Programs supporting first-time buyers and affordable housing continue to enable homeownership access for middle-income families.
The rental market has gained popularity among younger population segments who value mobility and lower upfront costs. This trend reflects changing lifestyle preferences and economic realities, particularly among professionals who may relocate for career opportunities.
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.
How many foreign buyers purchased property in Santiago in 2024 and 2025, and is that number trending up or down?
Foreign investment in Santiago's real estate market is experiencing significant growth, with expectations of a 25% increase by 2026 compared to recent levels.
While exact transaction numbers for 2024 and 2025 are still being compiled, the trend is clearly upward as Santiago serves as Chile's primary gateway for international property investment. Foreign buyers are attracted by the city's economic stability, modern infrastructure, and relatively favorable exchange rates.
Santiago remains the top destination for international buyers within Chile, despite more restrictive borrowing conditions for non-residents compared to Chilean nationals. These restrictions include higher down payment requirements and additional documentation, but haven't deterred foreign investment interest.
The growing foreign buyer presence reflects Santiago's appeal to Latin American investors seeking stable real estate markets, as well as increasing interest from North American and European buyers attracted by the city's quality of life and investment potential.
What's the unemployment rate in Santiago now, how has it moved in the past five years, and what's the IMF or Central Bank projection for 2026?
Santiago's unemployment rate stands at approximately 8.0% as of July 2025, representing a gradual improvement from higher levels experienced in recent years.
Over the past five years, unemployment peaked at 8.5% in September 2022, following the economic disruption caused by the pandemic and subsequent recovery period. The rate has shown a slow but steady decline since then, indicating labor market stabilization and economic recovery.
The IMF and Central Bank project unemployment to continue improving, with forecasts showing the rate declining to approximately 7.5% by 2026. This improvement reflects expected economic growth, infrastructure investment projects, and recovery in key employment sectors.
Lower unemployment rates support property demand by increasing household purchasing power and mortgage qualification rates. The projected improvement in employment conditions should provide additional support for Santiago's real estate market through 2026.
How much disposable income do Santiago households have on average today, and what's the expected growth rate through 2026?
Santiago households are experiencing rising disposable incomes as of 2025, bolstered by wage growth and improved investment returns following economic stabilization.
Current trends indicate household disposable incomes are growing at an estimated rate of 1.5% to 2.5% annually in real terms for 2025-2026. This growth reflects improving economic conditions, employment stability, and inflation moderation compared to the volatile 2022-2023 period.
The disposable income growth supports continued property demand by improving affordability for both buyers and renters. Higher household incomes enable families to qualify for larger mortgages and afford higher rental payments, supporting both property values and rental rates.
This income growth trajectory, combined with lower mortgage rates, creates favorable conditions for property market expansion through 2026. The improved purchasing power particularly benefits middle-income households looking to enter the property market.
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What percentage of properties in Santiago sell within 90 days today, and how does that compare to the market absorption rate in 2018, 2020, and 2023?
Approximately 80% to 85% of properties in Santiago sell within 90 days as of 2025, with prime areas experiencing even faster sales cycles of 15 to 30 days on average.
This rapid absorption rate indicates a seller's market with strong buyer demand and limited inventory in desirable locations. The current sales velocity reflects the market's health and buyer confidence in Santiago's property market fundamentals.
Comparing to historical periods shows significant variation: 2018 had lower absorption rates with longer sale periods due to slower demand conditions. The 2020 period saw pandemic-adjacent spikes in listings with moderate absorption as buyers and sellers adjusted to new market conditions. By 2023, the market had normalized with typical absorption rates within 90 days returning to key neighborhoods.
The current absorption rate demonstrates market efficiency and suggests that well-priced properties in good locations find buyers quickly. This trend supports continued price appreciation as demand consistently exceeds supply in Santiago's most desirable areas.
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.
Santiago's property market is positioned for continued growth in 2026, with multiple indicators supporting a 3-7% price increase.
The combination of falling mortgage rates, stable employment, growing foreign investment, and limited supply creates favorable conditions for both buyers and investors looking at Santiago's residential market.
Sources
- The Latinvestor - Square Meter Prices Chile
- The Latinvestor - Chile Price Forecasts
- Aparthotel - Chile Market Analysis
- The Latinvestor - Santiago Price Forecasts
- Properstar - Santiago House Prices
- Global Property Guide - Chile Rental Yields
- Global Property Guide - Chile Rent Yields
- INE Chile - Population and Housing Census
- The Latinvestor - Santiago Property Investment
- Trading Economics - Chile Interest Rate