Are you planning to sell real estate in Chile quick? Chile’s housing market suffered greatly in the aftermath of the global financial crisis of 2008. Home prices had fallen by 15 percent. Since then, the country has staged a smart recovery.
Not even the earthquake of 2010 affected the resolve of the people of Chile. The economy has been growing fast and the government has invested heavily in construction and infrastructure. This is pushed up home prices in the country to a considerable extent.
Chile’s property market is unique. Pricing a home or real estate here is not the same as it is in other parts of the world. It’s not easy to arrive at a fair market price for your home or land in Chile. In fact, that’s the most confusing thing for most people who have properties for sale in Chile.
While things look good in Chile for the most part, the last few months have witnessed a decline in sales and stagnation in home prices. Matt Ridgway of Chile Investments tells the New York Times, “Only the top end of the market has really seen an increase in sales, with homes valued at more than $1 million in Santiago seeing a 20 percent increase in sales compared to last year.”
The recent slowdown in prices, which is expected to be temporary, is because of the new government taking over, which has promised to bring in laws that could change property taxes.
In Chile, the city of Santiago is the greatest attraction. The most popular neighbourhoods in Santiago are Las Condes, Vitacura, Providencia, and Lo Barnechea. Also popular are Bellas Artes-Lastarria and Parque Forestal.
According to Victor Danús of local real estate company Re/Max Chile, Chicureo is the most popular area in Santiago. He describes it as “a very posh, peaceful and semi rural area, but very well-connected to the city through motorways, which attracts foreign investors, too.”
The average cost of a home in Santiago with three bedrooms and two bathrooms is $255,000. This is higher than the average for the rest of the country, $170,000. Homes in popular neighbourhoods such as Las Condes and Vitacura are priced at $5,000 a square meter, or $465 a square foot.
So who buys properties in Chile? Local buyers are the most prominent investors in Chile, as you would expect. But there are a number of wealthy foreign investors who buy properties in Chile.
Americans, Brazilians, Canadians and Argentines are big buyers of Chile real estate. There are many buyers who come from Germany and Spain as well.
Chile has a large diaspora settled in many different countries around the world, and many want to have at least some presence in their home country. This has led many to buy properties in Chile.
Chile has liberal property laws. There are no restrictions of any sort on foreign buyers. They have the same property rights as locals. It is important to hire a real estate lawyer before going ahead with the transaction.