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
Why is Santiago emerging as a prime destination for property investment in 2025? Is it the city's robust economic growth, the influx of international businesses, or the attractive property prices compared to other major cities? What makes Santiago a compelling choice for investors?
We encounter these questions frequently because we're actively engaged with local developers, real estate agents, and investors like you. With the growing interest in Santiago's market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a clear case for investing in Santiago's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) In Santiago, a strong tradition of homeownership helps maintain property values
Santiago is known for its strong tradition of homeownership, which keeps property values robust.
In Santiago, homeownership rates are among the highest in Latin America, according to the Chilean Construction Chamber. This preference for owning homes rather than renting helps keep property values stable and often rising. It's a city where owning a home is not just a dream but a common reality.
Looking at the past, Santiago's property values have consistently appreciated. For example, housing sales hit a record high in March 1994, as noted by CEIC. This long-term increase makes buying a home in Santiago a smart investment, as property values tend to go up over time.
The government also plays a big part in encouraging homeownership. Policies like household savings schemes and housing subsidies make it easier for people to buy homes. These initiatives, along with long-term mortgage options, have boosted the number of homeowners in the city, which in turn supports property values.
For those considering buying property in Santiago, it's worth noting that the city's real estate market is backed by strong government support. This support helps maintain a healthy market where property values are likely to continue rising.
Overall, Santiago's combination of high homeownership rates, historical property value appreciation, and supportive government policies makes it an attractive place for potential homeowners. The city's commitment to homeownership is a key factor in its stable and growing property market.
Sources: CEIC Data, HUD User, Rabobank
2) Santiago’s growing population means more people need homes
Santiago is experiencing a steady population growth, with nearly 7 million residents expected by 2024.
This growth isn't just a recent trend; it's been building since 1950 when the city had just over 1.3 million people. A significant factor in this increase is the influx of migrants, particularly from Venezuela. These migrants are often well-educated and middle-class, adding to the city's vibrant and diverse community.
As Santiago becomes a magnet for regional labor, the city is seeing a rapid urbanization process. This has led to a boom in housing demand, as more people seek to make Santiago their home.
Currently, over 35% of Chile's national population lives in the Santiago metro area. This concentration of people has spurred the development of peripheral areas and the expansion of central municipalities, further fueling the need for housing.
For potential property buyers, this means Santiago offers a dynamic market with plenty of opportunities. The city's growth is not just in numbers but also in the expansion of its urban landscape, making it an exciting place to invest.
With its growing population and urban sprawl, Santiago is a city on the move, offering a unique blend of cultural diversity and economic potential. The increasing demand for housing is a clear indicator of its thriving real estate market.
Sources: World Population Review, Digital Commons
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.
3) Santiago’s stable economy offers a secure environment for your investment
Santiago's economy is on a steady rise, making it a promising spot for property investment.
Chile's GDP is on an upward trend, with growth rates projected to hit 2% to 3% by 2025. This consistent increase is a clear sign of a stable economic environment, which is great news for potential investors. The city's economy is stable, providing a secure investment environment.
Foreign investors are showing confidence in Chile, as foreign direct investment is expected to cover the current account deficit. This influx of international funds highlights the trust global investors have in the country's economic future.
Chile's credit ratings are solid, with S&P Global Ratings affirming an “A” rating and a stable outlook. This rating reflects the strength of Chile's institutions and their commitment to maintaining fiscal health, which is reassuring for anyone considering investing in Santiago.
The government is actively supporting economic growth through initiatives like the Fiscal Pact agenda. This proactive approach is paving the way for more investment projects and economic development, making Santiago an even more attractive place to invest.
With these factors in play, Santiago offers a secure and promising environment for property investment. The city's economy is stable, providing a secure investment environment.
Sources: Central Bank of Chile, Ministry of Finance, Chile, Trading Economics
4) Santiago’s mild climate makes it a great place to live all year
Santiago offers a mild climate that makes it a great place to live all year.
With an average annual temperature of 16°C (60.8°F), Santiago is comfortably warm. Even in January, the hottest month, temperatures hover around 21°C (69°F), while June, the coldest month, sees averages of 9°C (48°F). This means you can enjoy the city without the hassle of extreme weather.
Summers in Santiago are pleasant, with daytime temperatures ranging from 25°C to 30°C (77°F to 86°F). Nights cool down to a refreshing 15°C to 18°C (59°F to 64°F), perfect for evening strolls or dining al fresco. The lack of harsh temperature swings makes it easy to plan outdoor activities.
Another perk of living in Santiago is its good air quality. With an average AQI of 61, it's significantly better than many other big cities. This is a big plus if you're concerned about the air you breathe.
Sources: Holiday Weather, World Weather Online, AQI.in
5) Santiago’s role as a business hub boosts demand for expat housing
Santiago is now a major hub for international business, increasing the need for expatriate housing.
In 2023, Chile saw a surge in foreign direct investment, hitting over $21.7 billion, the highest since 2015. This wave of investment has drawn many multinational companies to set up shop in Santiago, enhancing its reputation as a business center.
By September 2024, Chile had attracted $11.8 billion in net investment flows, 5% above the two-decade average for the first nine months of the year. This trend highlights Chile's appealing business climate and transparent regulations, which continue to lure foreign investors. As more global companies establish themselves in Santiago, the demand for expatriate housing naturally rises.
Chile's expanding international trade agreements have further cemented its role in regional trade. Santiago's strategic location and business-friendly environment make it a magnet for international business professionals, driving up the need for housing and real estate services.
With its growing status, Santiago offers a vibrant lifestyle and diverse cultural experiences, making it an attractive place for expatriates. The city's infrastructure and amenities are continually improving, catering to the needs of a global workforce.
As Santiago continues to thrive as a business hub, the real estate market is adapting to meet the needs of its international residents. This dynamic environment offers opportunities for property investors looking to tap into a growing market.
Sources: Equinix Blog, Gob.cl, InvestChile
Don't buy the wrong property, in the wrong area of Santiago
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) With many international events, Santiago is perfect for short-term rental opportunities
Santiago is buzzing with international events, boosting the demand for short-term rentals.
One standout event was the 2025 UCI Track Cycling World Championships, held at the Peñalolén Velodrome. This venue, originally built for the Santiago 2023 Pan American and Parapan American Games, drew cycling enthusiasts from all over, filling up local accommodations.
Beyond sports, Santiago is a magnet for international conferences and exhibitions. Events like Access Masters, Access MBA, and FIDAE bring in professionals from around the globe, increasing the need for short-term stays. These gatherings showcase Santiago's versatility as a host city, making it a top pick for event planners.
Tourism is also on the rise, with a 38.8% jump in international arrivals in 2024 compared to the previous year. Santiago is a major draw for these visitors, thanks to effective marketing and initiatives targeting countries like Brazil. This influx keeps the short-term rental market thriving.
Property owners in Santiago are savvy, often increasing their listings during major events to meet the high demand. This strategy not only benefits them but also ensures visitors have plenty of options.
With its vibrant event scene and growing tourist numbers, Santiago is a hotspot for short-term rentals, offering opportunities for property investors to tap into this dynamic market.
Sources: Gob.cl, Marca Chile, Events Eye
7) In Santiago, you’ll find neighborhoods with both modern and historic architecture
Santiago's neighborhoods are a fascinating blend of modern and historic architecture.
Areas like Barrio Lastarria and Barrio Italia are buzzing with cultural energy, drawing in both local and international buyers. This interest is pushing property prices up, making these neighborhoods even more desirable.
Tourism is a big player here, with Santiago being a hotspot for visitors. People flock to see historic gems like the Catedral Metropolitana de Santiago and modern wonders such as the Costanera Center, showcasing the city's architectural diversity.
The government is also in on the action, with initiatives to improve infrastructure and promote sustainable home renovations. These efforts are making certain areas more appealing and are part of the city's ongoing architectural revival.
Urban development projects are not just about aesthetics; they're boosting property values too. This is part of a broader trend where Santiago's neighborhoods are becoming more attractive to potential buyers.
With all these elements at play, Santiago's architectural landscape is evolving, offering a unique mix that appeals to a wide range of tastes and interests.
Source: Avontuura
8) With the expanding public transport, Santiago properties are becoming more accessible
The city's public transportation system is expanding, making properties more accessible.
Santiago is buzzing with new developments in public transport. The city is pouring money into its infrastructure, with a massive $500 million plan called the Technical Transformation of the RED Network. This ambitious project kicked off with procurement tenders in 2023 and 2024, aiming to weave together Santiago's transport network for better accessibility.
One of the standout projects is the 5.2 km extension of Metro Line 2, which opened in November 2023. This extension is a game-changer, cutting transfer times by 32% and boosting connectivity for over 1.35 million people. And that's not all—construction is underway for new metro lines like Line 7, which will add 19 stations by the end of 2027.
In a bid to go green, the Chilean government is swapping out 214 diesel buses for electric ones, bringing the city's electric fleet to nearly 2,500. This shift is not just about reducing emissions; it's about improving air quality, putting Santiago on par with eco-friendly cities like London and Hong Kong.
Sources: Railway Pro, Trade.gov, MercoPress
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Chile. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Santiago offers top-notch healthcare, making it a prime choice for property investment in Latin America
Santiago's healthcare system is considered one of the best in Latin America.
In Santiago, you'll find top-notch hospitals like ClĂnica Alemana de Santiago and ClĂnica Santa MarĂa, which are internationally accredited. These hospitals offer care and safety standards that match those in developed countries, thanks to their cutting-edge technology and services.
The Chilean government has poured resources into healthcare, leading to modernized hospitals and clinics. This means you'll have access to advanced medical tools like EKG machines, ultrasound devices, and CT scanners, which are essential for precise diagnoses and treatments.
Chile boasts one of the highest life expectancy rates in Latin America, a clear indicator of its healthcare quality. This is backed by robust public health policies and partnerships with global health organizations, keeping Chile at the forefront of medical advancements.
Sources: Medical Tourism, PubMed
10) Santiago’s modernizing infrastructure is boosting living standards
Santiago is rapidly modernizing its infrastructure, making life better for everyone living there.
One big change is in public transportation. The city has invested a lot in its metro system, with Line No. 2 and Line No. 3 completed in 2023. This means commuting is now easier and more efficient for millions of people. Imagine hopping on a train and getting to your destination faster than ever before.
Then there's the cool tech stuff. Santiago is embracing smart city technologies, like the San JoaquĂn Campus Smart City Project. This project uses 5G to make urban life smoother and is a model for other cities. It's all about using tech to make everyday life better.
Speaking of 5G, Chile's telecommunications market is booming. By mid-2024, 4.83 million people were using 5G, which means fast and reliable internet is becoming the norm. This is a game-changer for both work and play, making life more connected and convenient.
All these improvements are part of a bigger plan to modernize Santiago. The city's infrastructure is getting a major upgrade, which is great news for anyone thinking about moving there. It's not just about getting around or staying connected; it's about a better quality of life overall.
Sources: The Future of Chile’s Infrastructure – 2024/25 Project Pipeline Insights, Santiago’s metro gets over US$400mn in 2024 budget, San JoaquĂn Campus Will Be Chile's First Smart City at Scale, State of play: Chile's telecommunications market
11) Santiago is safer than other Latin American capitals, making it a great place to buy property
In 2023, Santiago's homicide rate dropped to 6.3 per 100,000 people, according to the UNODC Global Study on Homicide.
This improvement from the previous year's rate of 6.7 shows a positive trend. The Chilean Interior Ministry also reported a 6% reduction in homicides, with murders decreasing from 1,330 in 2022 to 1,248 in 2023. Alongside this, robberies and thefts saw a decline of 4% and 3%, respectively.
One of the key drivers behind these improvements is Chile's "Streets without Violence" program, launched in April 2023. This initiative has been crucial in enhancing safety by boosting police presence and recovering public spaces.
The program also focuses on effective prosecution and controlling weapons, which has played a significant role in reducing crime. Residents have noticed a more visible police force, which has contributed to a sense of security.
Compared to other Latin American capitals, Santiago stands out for its relatively low crime rate. This makes it an attractive option for those considering buying property in the region.
With these ongoing efforts, Santiago is becoming a safer place to live, offering potential property buyers a promising environment. The city's commitment to safety and community well-being is evident in these statistics.
Sources: UNODC, Bloomberg, Statista
Make a profitable investment in Santiago
Better information leads to better decisions. Save time and money. Download our guide.
12) Santiago’s famous wine industry attracts tourists, increasing rental demand
Santiago's wine industry is world-renowned, drawing tourists and boosting rental demand.
Picture this: Santiago, with its stunning vineyards, is a magnet for wine lovers. The global wine tourism market is on a roll, with a 13.2% annual growth rate expected from 2024 to 2034. This means more folks are flocking to Santiago for wine tours and tastings, soaking in the local culture and flavors.
Wine isn't just a drink here; it's a big deal for the economy. It makes up 0.5% of Chile's GDP and provides jobs for over 100,000 people. This economic boost is mirrored in tourism, where visitor spending hit a whopping US$28.1 billion in 2019. Santiago's wine tourism is a key player in this financial success story.
With more tourists comes a surge in short-term rentals, especially near popular wineries. Visitors are after authentic experiences, and staying in local spots is part of the charm. This trend has led to a noticeable uptick in rental listings, catering to those eager to immerse themselves in Santiago's wine culture.
Wine events and festivals are popping up all over Santiago, drawing crowds and filling up hotels and rentals. During these events, occupancy rates soar, as people want to be right where the action is. It's a win-win for the local economy and property owners.
Sources: Future Market Insights, Wines of Chile, Tourism Economics
13) Santiago’s cultural diversity attracts many different types of buyers
Santiago's cultural diversity makes it a magnet for property buyers.
With a thriving expatriate community of over 22,000 members, Santiago offers a warm welcome to newcomers. Groups like the Santiago Spanish and English Language Exchange Meetup and the Spanglish Party in Santiago help people connect and feel at home quickly. This network of expats creates a supportive environment, making the transition to life in Santiago smoother.
Families are drawn to Santiago for its variety of international schools, which cater to children from all over the globe. These schools not only provide quality education but also enrich the city's cultural fabric, making it a top choice for those seeking a cosmopolitan lifestyle. The city's vibrant cultural scene, highlighted by events like the Santiago Food Festival, showcases both local and international flavors, adding to its allure.
Santiago's food scene is a testament to its multicultural appeal. Restaurants like Yum Cha offer unique dining experiences by blending Asian ingredients with teas from around the world. This culinary diversity attracts food lovers from various backgrounds, reflecting the city's cosmopolitan nature.
The property market in Santiago is as diverse as its population. A mix of nationalities, including Americans, Venezuelans, Argentinians, and Colombians, are investing in the city. This blend of cultures in property ownership highlights Santiago's broad appeal to international buyers.
Sources: Expatriate Consultancy, Life and Thyme, Marcachile
14) With tax incentives for green building, you can increase your property’s value
The government offers tax incentives for green building practices, making sustainable development more attractive.
In Santiago, developers can enjoy property tax rebates and credits for efficiency upgrades, which not only cut down initial costs but also boost property value over time. This trend is part of a larger movement, as the global green building materials market is set to grow significantly by 2030. As more developers jump on board, the number of green-certified buildings is expected to rise.
Green buildings are not just about being eco-friendly; they also reduce operational costs by up to 37%. This means higher net operating income, which is music to any investor's ears. With buyers increasingly preferring sustainable properties, these buildings often command higher rental income and sale premiums.
Investing in green buildings is becoming a smart move. The financial perks, like those from the Inflation Reduction Act, offer deductions up to $5 per square foot for meeting energy efficiency targets. This makes it easier for developers to justify the initial investment in sustainable methods.
As the demand for green buildings grows, so does their value. The combination of tax incentives, reduced operational costs, and buyer preference for sustainability boosts the property value, making these buildings a lucrative investment.
In the end, going green isn't just good for the planet; it's also good for your wallet. With the right incentives and market trends, investing in sustainable properties is a win-win situation.
Sources: Engineered Tax Services, IFC, Construct Estimates
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.