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
What will happen in Santiago’s real estate market? Will prices go up or down? Is Santiago still a hotspot for foreign investors? How is Chile’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Santiago, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental yields in Santiago will rise as more young professionals seek rental properties
Santiago is becoming a hotspot for young professionals, with a 10% increase in this demographic moving to the city in 2023.
The tech and finance sectors are booming, with companies like IBM and Microsoft setting up shop, leading to over 20,000 new jobs expected by 2025. This influx of job opportunities is a major draw for young talent.
Many of these young professionals prefer renting over buying. A survey by Vivanuncios found that 70% of them choose to rent because of high property prices and the flexibility renting offers. In neighborhoods like Providencia, property prices jumped 15% in 2023, making buying even less affordable.
Santiago's population is growing fast, projected to hit 7 million by 2025. This rapid urbanization is pushing up the demand for rental properties, especially in popular areas like Providencia and Las Condes.
With a shortage of rental properties in these sought-after neighborhoods, landlords are in a good position to charge higher rents. This limited supply is expected to drive up rental yields as demand continues to rise.
Sources: INE, Chilean Chamber of Commerce, Vivanuncios, El Mercurio
2) High-end property yields in Santiago will drop as purchase prices rise faster than rental income
Santiago's high-end property market is seeing a significant rise in purchase prices.
In 2023, buying a square meter in Santiago's city center cost between CLP 2,000,000 and CLP 3,500,000, and by 2025, prices increased by 5% in some areas. This surge is making it harder for rental income to keep up. While the average rental yield for residential properties is about 4.5%, it's not growing as fast as the property prices. This means that the money you make from renting isn't catching up with what you pay to buy.
The property price-to-rent ratio in Santiago is around 24.16, showing a big gap between buying prices and rental income. This gap means it takes longer to earn back what you spent on the property through rent. As a result, the yield on these high-end properties is declining.
For those considering investing in Santiago, it's crucial to understand that the rental market isn't matching the pace of property price hikes. This trend is particularly noticeable in the city's upscale neighborhoods, where the allure of luxury living is driving prices up faster than rental returns.
Local experts suggest that this pattern might continue, as Santiago's appeal as a cosmopolitan hub attracts more buyers. However, without a corresponding rise in rental income, investors might find it challenging to achieve the returns they expect.
Understanding these dynamics is key for anyone looking to invest in Santiago's property market. The current landscape suggests that while the city offers exciting opportunities, the financial returns may not be as immediate as some investors hope.
Source: Global Property Guide
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.
3) More foreign buyers will invest in Santiago’s real estate market as it’s seen as a safe bet during global uncertainties
Foreign buyers are increasingly targeting Santiago's real estate market as a safe investment amid global uncertainties.
Santiago's real estate market has a knack for staying strong even when the global economy takes a hit. This is largely due to Chile's solid economic policies and political stability, which have been well-maintained over the years. The country stands out in Latin America with a ranking of 27 out of 180 in Transparency International’s 2022 Corruption Perceptions Index, showing its relatively low corruption levels.
Investors find Santiago appealing because the average rental yield for residential properties is about 4.5%. This is quite attractive compared to other major Latin American cities. With property prices on the rise and a growing demand for real estate, Santiago is becoming a hot spot for international investors. In fact, real estate demand in Santiago has jumped by 8% over the past year, thanks to a growing population and a stable economy.
When you look at the numbers, Santiago offers higher average prices per square meter than cities like Buenos Aires and Lima, but it also delivers better rental yields. This makes it a great choice for those seeking both capital appreciation and rental income. The city's ongoing infrastructure projects, like new metro lines and commercial centers, are boosting property values and enhancing the quality of life, making it even more attractive.
4) Santiago’s home prices will grow moderately as the economy stabilizes after the pandemic
In 2025, Santiago's residential property market is set for moderate growth as the economy finds its footing post-pandemic.
Foreign investors are eyeing Chile's real estate, drawn by a robust economic recovery and a growing need for housing. This could mean property prices might climb between 3% to 7%.
Government incentives are encouraging sustainable home renovations, which are likely to boost property values. As older buildings in Santiago get these eco-friendly upgrades, their market worth is expected to rise.
Infrastructure improvements, like the $1.27 billion investment in Route 5, are enhancing connectivity, especially in suburban areas, potentially driving up property values.
Urbanization and population growth are fueling a housing demand that outstrips supply, particularly in city areas. This shortage of construction permits is likely to push prices higher.
With interest rates stabilizing, buyers are regaining purchasing power, which is expected to further strengthen demand and drive property prices up.
Sources: Rio Times, Highways Today
5) Demand for homes with office spaces in Santiago will grow as remote work becomes standard
Remote work has become the norm in recent years, especially in 2023 and 2024.
In Chile, a whopping 95.3% of companies have embraced remote work, thanks to the COVID-19 pandemic. This shift has sparked a growing interest in homes with dedicated office spaces, as people look for ways to blend work and home life seamlessly.
As more people work from home, the demand for traditional office spaces is dropping. By early 2025, properties with home offices were already fetching higher prices in the real estate market. This trend shows that homebuyers are keen on spaces that cater to a work-from-home lifestyle.
Media outlets often talk about the perks of working from home, like cutting down on commute time and achieving a better work-life balance. These benefits make home office spaces even more attractive to buyers, pushing their desirability in the housing market.
In Santiago, properties with home office spaces are becoming hot commodities. As remote work becomes the norm, these homes are increasingly sought after by those looking to settle in the city.
Sources: InvestChile, NAIOP, Statista
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6) Demand for eco-friendly homes in Santiago will rise due to new tax incentives for green buildings
In Santiago, interest in green building certifications like LEED is on the rise.
People are buzzing about the benefits of eco-friendly buildings, like energy savings and cost efficiency, thanks to more media coverage. This has sparked a growing curiosity among potential homeowners who are keen on sustainable living.
The Chilean government is making waves by offering tax incentives, such as the 45L Tax Credit, which gives developers up to $5,000 per energy-efficient unit. This move has been a game-changer, pushing more developers to embrace green building practices.
In Santiago, the real estate scene is shifting as more developers are jumping on the sustainable construction bandwagon. This change is largely driven by consumer demand and attractive government incentives, making eco-friendly projects more common.
With the market now offering a wider range of eco-friendly building materials, developers find it easier to embark on sustainable projects. This availability is a key factor in the increasing number of green developments popping up around the city.
For those considering buying property in Santiago, these new tax incentives are a big deal. They not only make eco-friendly homes more appealing but also suggest a future where demand for sustainable living spaces will continue to grow.
Sources: New York Build Expo
7) Property values will rise in Santiago's newly connected neighborhoods as the metro system expands
The expansion of Santiago's metro system is set to boost property values in newly connected neighborhoods.
In the past, when Santiago extended its metro lines, like Line 2 and Line 3, property values in those areas saw a noticeable increase. This is because better connectivity and shorter travel times make these neighborhoods more appealing. Urban planners and real estate experts have long noted that when commute times drop, the demand for homes in those areas tends to rise, pushing up prices.
The Chilean government is adding 36km to the metro network, which means more neighborhoods will soon enjoy the perks of being metro-accessible. This isn't just about convenience; it's a significant economic boost for these areas. Media reports often highlight how reduced commute times and improved neighborhood appeal are key drivers of rising property values.
Looking at other cities, like Boston and Seattle, properties near public transit have seen median sales price increases that are significantly higher than those farther away. This trend is not unique to the U.S.; Santiago is experiencing a similar pattern as its metro system expands.
For potential buyers, this means that investing in areas soon to be connected by the metro could be a smart move. As these neighborhoods become more desirable, property values are likely to climb, offering a good return on investment.
So, if you're considering buying property in Santiago, keep an eye on the metro expansion plans. The areas that will soon have metro access are poised for growth, making them attractive options for both living and investing.
Sources: AASHTO Journal, AX Legal, BNamericas
8) Eco-friendly housing developments will increase on Santiago's outskirts as sustainability becomes a priority
The outskirts of Santiago are buzzing with new eco-friendly housing developments as sustainability takes center stage.
In recent years, Santiago has become a magnet for digital nomads and remote workers, sparking a surge in demand for sustainable living options. This trend is especially evident in lively and budget-friendly neighborhoods, where people are eager for eco-friendly homes.
Leading the charge is the Praderas New Community, a groundbreaking project on Santiago's western edge. This development plans to offer 20,000 new homes, with a big chunk set aside for affordable housing. It's a shining example of how to blend sustainability with urban living, even generating some of its own energy from renewable sources.
Government incentives are also making a splash, encouraging green building practices and energy-efficient home makeovers. As more properties get these eco-upgrades, their market value is expected to climb, fueling even more interest in sustainable housing.
These incentives are not just about going green; they're about making homes more valuable and appealing. As Santiago embraces these changes, the city's real estate market is poised for a transformation, with eco-friendly homes leading the way.
With sustainability becoming a priority, the outskirts of Santiago are set to become a hub for eco-conscious living, attracting both locals and newcomers alike.
Sources: Sasaki, Climate Action Tracker, EBRD Green Cities
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.
9) Luxury rents in Santiago will rise as more international executives move to the city
Santiago is buzzing with foreign investment, making it a hotspot for multinational companies.
In early 2024, Santiago attracted US$4,453 million in foreign direct investment, showing its appeal to global businesses. This influx means more international executives are moving to the city, and they often seek out luxury living spaces.
These executives are drawn to Santiago's vibrant financial scene. Back in 2021, the city ranked 10th in the Finance & Housing Index, a nod to its strong economic environment that appeals to expatriates.
But here's the catch: Santiago's real estate market is feeling the pressure. There's a shortage of high-end rental properties, especially in sought-after neighborhoods like Vitacura and Las Condes. This scarcity is pushing up rents in the luxury sector.
As more executives settle in, the demand for upscale housing is only going to rise. This trend is particularly noticeable in areas favored by international professionals, where the competition for premium properties is fierce.
So, if you're eyeing a luxury property in Santiago, be prepared for a competitive market. The city's growing international community is reshaping the real estate landscape, making it a dynamic place to invest or settle down.
Sources: InvestChile, InterNations
10) Property values will rise significantly around Metro Line 7 as connectivity gets better
The new Metro Line 7 in Santiago is expected to cause a significant rise in property values as connectivity improves.
Historically, when Santiago expands its metro lines, property values in nearby areas tend to increase. Take Providencia and Las Condes, for instance; these neighborhoods saw substantial growth in property values after previous metro expansions.
Improved public transportation, like Santiago's metro, has made the city more appealing to both residents and businesses. With Metro Line 7, this trend is likely to continue. Buyers are increasingly drawn to properties near metro stations because of the convenience and efficiency of public transport.
Once Metro Line 7 is complete, it will reduce travel times between the western and eastern parts of the city. This makes areas like Vitacura and Renca more attractive for living and business. Shorter commutes are a big reason why properties become more desirable.
Real estate experts believe that Metro Line 7 will significantly boost property values in its vicinity. This prediction is based on historical data and the positive effects of past metro expansions on Santiago's property market.
Sources: BNamericas, Systra, Liberal Landscape
11) Demand for senior-friendly housing in Santiago will grow as the population ages
The aging population in Santiago is reshaping the housing market.
In recent years, the number of people aged 65 or older in Chile has been steadily increasing, and it's projected to hit 21% by 2041. This shift means more folks are living longer and will need homes that cater to their changing needs. Imagine homes with fewer stairs, wider doorways, and easy-to-reach cabinets—these are becoming more popular as the population ages.
Chileans are living longer, with life expectancy reaching an average of 80.92 years in 2024. As people enjoy longer lives, they often look for homes that are easier to manage and move around in. This is driving a demand for housing that is both accessible and senior-friendly, making it a hot topic in the real estate market.
The government is also stepping up, focusing on policies and funding to support age-related programs. They're recognizing the shift towards a super-aged society and are pushing for initiatives to create more accessible living spaces. This is not just a local trend; it's a growing preference among older adults worldwide.
In the real estate scene, there's been a noticeable uptick in the development of senior housing. For example, the absorption rate in the senior housing sector jumped by 40% in early 2024 compared to the previous year. This surge shows a clear interest and need for housing that specifically caters to seniors.
With these changes, the demand for senior-friendly housing options is expected to continue rising. Developers and investors are taking note, seeing opportunities in creating homes that meet the needs of an aging population. This trend is reshaping the housing landscape in Santiago and beyond.
Sources: Statista, Macrotrends, NIC MAP Vision, AARP International
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12) Luxury apartment demand in Lastarria will grow as cultural tourism increases
The historic district of Lastarria is set to become a prime spot for luxury apartments as cultural tourism booms.
In 2024, Santiago saw a big jump in international visitors, with over four million tourists flocking to the city, a 38.8% increase from 2023. This surge shows how much people are drawn to Santiago's rich cultural scene.
Lastarria is buzzing with cultural events like the Fiesta de la Vendimia and the Santiago a Mil Festival, which pull in both locals and tourists. These festivals, along with high-end shops and restaurants, make Lastarria a cultural hotspot and a magnet for luxury living.
The demand for luxury places to stay in central Santiago is climbing, thanks to the city's cultural and lifestyle appeal. You can see this in the growing number of international hotel chains and luxury brands setting up shop in the area.
As cultural tourism keeps growing, Lastarria's mix of history, culture, and modern comforts makes it a perfect spot for luxury apartments. The district's charm is undeniable, with its unique blend of old-world charm and contemporary amenities.
Sources: GoWithGuide, Pariwana Hostel, Travel and Tour World
13) Affordable housing prices in Santiago will stay steady as government efforts boost supply
The Chilean government is actively working to keep affordable housing prices stable in Santiago.
They've been pouring resources into affordable housing projects, aiming to boost the number of available homes. This move is crucial for keeping prices steady and making sure more people can afford a place to live. By focusing on first-time buyers and low-income families, the government wants to make housing accessible to a wider audience.
In Santiago, new laws like AB 1551 are shaking things up by easing zoning restrictions. This means developers can build more units without needing extra subsidies, which helps increase the housing supply. These kinds of regulatory changes are key to closing the financing gap in affordable housing.
According to CEIC data, there's been a noticeable rise in building permits and new developments in Santiago, indicating a positive trend in housing supply. Even though there was a slight dip in September 2024, the overall outlook is promising, suggesting a stable housing market.
Partnerships between the government and private developers are also playing a big role in boosting housing supply. Initiatives like offering permit-ready plans for accessory dwelling units (ADUs) and waiving permit fees for eligible residents are making it easier to increase the availability of affordable homes.
These efforts are part of a broader strategy to ensure that affordable housing remains within reach for more people in Santiago. By working together, the government and developers are creating a more balanced housing market.
Sources: Global Property Guide, CEIC Data
14) Suburban living in Santiago will become more appealing as infrastructure improves in the outskirts
In 2024, Chile is set to make a big splash with major investments in transportation infrastructure.
These plans include exciting projects like the Santiago-Valparaíso train and upgrades to Route 5 North, which aim to boost connectivity and cut down travel times. Imagine zipping between the city and suburbs with ease, making daily commutes a breeze.
Real estate experts are already noticing a shift. There's a growing demand for suburban properties, thanks in part to these infrastructure upgrades. The Santiago-Valparaíso train, for instance, is expected to raise property values in the Valparaíso Region, making these areas more tempting for city folks looking for a change.
But that's not all. A new 25km metro network is in the works, along with expansions to public transport systems like Transantiago. These developments are dramatically improving the link between suburbs and the city center, making it easier than ever to access work and amenities without the city hustle.
For those considering a move, these changes mean more than just convenience. They offer a chance to enjoy suburban life without sacrificing the perks of city living. With enhanced public transport options, you can have the best of both worlds.
So, if you're thinking about buying property in Chile, keep an eye on these infrastructure projects. They could be the key to a more connected and accessible suburban lifestyle, drawing city dwellers to the outskirts like never before.
Sources: AX Legal, Highways Today, UDD Exchange
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.
15) Virtual reality tours will become standard for property viewings in Santiago, transforming real estate marketing
Virtual reality tours are now a staple in Santiago's real estate market, revolutionizing how properties are showcased.
In Santiago, the rise of VR in real estate is fueled by the increasing number of tech-savvy internet users who crave more engaging property viewings. This shift aligns with a global trend where VR's role in real estate is expanding rapidly. The demand for virtual tours is particularly strong among younger buyers, who are 130% more likely to schedule a viewing if a virtual tour is available.
Real estate agencies in Santiago are jumping on the VR bandwagon, offering immersive experiences that bring properties to life. Thanks to advancements in 3D scanning and modeling, creating high-quality virtual tours has become more accessible and affordable. This technological leap has allowed agencies to stay competitive and meet the expectations of modern buyers.
Consumer interest is a driving force behind this transformation. Surveys reveal that over 50% of adults have already taken a virtual tour, and a significant portion of home buyers now expect this option when browsing listings. This trend is particularly pronounced among the younger demographic, who are eager to explore properties from the comfort of their homes.
As VR technology becomes more mainstream, Santiago's real estate market is poised for further evolution. The ability to offer interactive and detailed property tours is not just a novelty but a necessity in today's competitive landscape. Real estate companies are investing heavily in VR to ensure they can provide these cutting-edge experiences.
With the continued growth of VR in real estate, Santiago is set to become a hub for innovative property marketing. The city's embrace of technology reflects a broader shift towards more dynamic and engaging ways to connect buyers with their future homes.
Sources: EZ Real Estate Tools, PhotoUp, WDCS Technology
16) Mid-range property yields in Santiago will stay stable as they appeal to both buyers and renters
Mid-range properties in Santiago are increasingly popular among buyers and renters.
One reason for this trend is the 8% rise in rental demand in 2023, fueled by Santiago's growing population and a stable economy. This has caught the eye of foreign investors, who are adding to the demand.
In these neighborhoods, rental prices have either stayed steady or gone up, with average rental yields hovering around 4.5%. This is quite appealing when you compare it to other big cities in Latin America.
Historically, rental yields have been consistent, ranging from 4% to 6% annually, which shows a stable trend for these properties.
Santiago's economic stability is a big plus for property investments. The market is open to international investors because there are no restrictions on foreign ownership, which helps keep mid-range property yields stable.
Urban development projects have also improved infrastructure, making these neighborhoods even more attractive. This combination of factors makes mid-range properties in Santiago a solid choice for investment.
Sources: Global Property Guide
17) Demand for homes with outdoor spaces in Santiago will grow as lifestyle preferences change after the pandemic
Santiago residents are now prioritizing properties with outdoor spaces as a key lifestyle choice.
In the bustling neighborhoods of Providencia and Las Condes, homes with gardens or terraces are seeing a noticeable price jump. This isn't just about aesthetics; it's about creating a sanctuary for mental well-being. People are craving fresh air and a slice of nature right at home, a trend that has only grown stronger since the pandemic.
Real estate agents are buzzing with inquiries about properties that offer these outdoor perks. The demand for homes with balconies or gardens is skyrocketing, and it's not just a passing phase. Media outlets in Santiago are emphasizing how these spaces contribute to mental health, making them even more appealing to potential buyers.
Urban planners are catching on too. They're weaving more green spaces into the fabric of residential areas, aligning with this new lifestyle shift. These initiatives are reshaping the city's landscape, making it greener and more livable. It's a win-win for everyone involved.
Consumer surveys back this up, showing a clear preference for homes with outdoor amenities. People are valuing these spaces for their mental health benefits, and it's influencing their buying decisions. The trend is clear: outdoor spaces are no longer a luxury but a necessity.
As Santiago evolves, the focus on outdoor living is becoming a defining feature of the real estate market. This shift is reshaping how people view their homes and their lifestyles, making outdoor spaces a top priority.
Sources: Interlace Hub, Oppla
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.