Real Estate - Chile | Statista Market Forecast

The Real Estate market market in Chile is expected to reach a value of US$1.96tn in 2024.
The residential sector dominates this market segment, with a projected market volume of US$1.55tn in the same year.
It is anticipated that the market will experience an annual growth rate of 4.77% from 2024 to 2029 (CAGR 2024-2029), resulting in a market volume of US$2.48tn by 2029.
When comparing global Real Estate market markets, United States is expected to generate the highest value, reaching US$132.0tn in 2024.
Chile's real estate market is experiencing a surge in demand for luxury beachfront properties due to its stunning coastline and growing tourism industry.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Chile has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Real Estate market in Chile have been shifting towards urban living, with a growing demand for apartments and condominiums in major cities. This trend can be attributed to the increasing urbanization and population growth in Chile, as well as the desire for convenience and proximity to amenities and services. Additionally, there has been a growing interest in sustainable and eco-friendly housing options, with customers seeking properties that are energy-efficient and environmentally friendly. Trends in the Real Estate market in Chile include the development of mixed-use projects, which combine residential, commercial, and retail spaces in a single development. This trend is driven by the desire for integrated living and working environments, where residents can have easy access to amenities and services without having to travel long distances. Another trend is the increasing use of technology in the real estate sector, with the emergence of online platforms and mobile applications that facilitate property search, transactions, and management. Local special circumstances in Chile, such as the earthquake-prone nature of the country, have led to the implementation of strict building codes and regulations. These regulations ensure that properties are built to withstand seismic activity, which provides a sense of safety and security for buyers. Additionally, the availability of financing options and government subsidies for first-time homebuyers has made homeownership more accessible and affordable for many Chileans. Underlying macroeconomic factors have also played a significant role in the development of the Real Estate market in Chile. The country has experienced stable economic growth, low inflation, and low interest rates in recent years, which have created a favorable environment for real estate investment. Additionally, the government has implemented policies to attract foreign investment in the real estate sector, which has further fueled market growth. In conclusion, the Real Estate market in Chile is developing in response to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The shift towards urban living, the development of mixed-use projects, the use of technology, and the implementation of strict building codes are all contributing to the growth of the market. Additionally, stable economic conditions and government policies have created a favorable investment climate in Chile.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Chile

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Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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