Chile house hunt: a winding oceanfront wonder for $ 2 million
Mr Bergstrom said prices for high-end properties in his area have risen 25 to 30% year over year and are averaging between $ 2 million and $ 3 million. “I am selling some of the most expensive houses in Chile, and it hasn’t stopped,” he said. “The problem is, there is no more room to grow in small towns and the number of homes for sale has not increased. The only way to get land is to convince an owner to sell.
With remote working allowing more people to live in non-urban environments, “these traditionally second home markets have grown the most over the past 24 months,” said Jorge Miro, Commercial Director of Engel & Völkers Chile in Santiago. Among the most active markets were the central seaside town of Pichilemu, the lakeside town of Pucon, south of the lake, and Santo Domingo beach, 110 kilometers west of Santiago, he said.
Also on that list is Los Vilos, which was “primarily a fishing town, and then became a vacation resort area for middle-class people over the past two decades,” said Yuval Haym, regional director of Re / Max Chile in Santiago.
Along with the pandemic, political and social upheavals have destabilized the Chilean real estate market. In 2019, protracted protests were staged against economic inequality, and this month a presidential election will include “far-left and far-right candidates, and either outcome will lead to a leak of short-term capital, “said Matt Ridgway, owner of Chile Investments, a real estate company in the Colchagua Valley, south of Santiago. Wealthy Chileans, meanwhile, are “divesting stocks and stocks and investing in real estate” because of fears of volatility, pushing up luxury prices.
Chile’s weak peso presents an opportunity for foreign buyers who can handle some uncertainty, said Haym: “Chile is more attractive than Miami right now, with a higher return on investment. With an influx of professionals who are transferring to work in key Chilean industries like mining, fishing, and paper, “you’re almost guaranteed someone will rent your condo.”