Chile Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

17.5x

Ratio of property prices to annual income

Rental Yield

4.3%

Average annual rental return

Price to Rent

23.5

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Chile Real Estate trends and investment implications

Market Overview

The Chilean property market exhibits signs of being overheated with a high price-to-income ratio of 17.5, indicating affordability challenges. Rental yields at 4.3% are moderate, suggesting limited attractiveness compared to potential interest rates. The price-to-rent ratio of 23.5 suggests a preference for renting over buying in the current economic climate. Historical data hints at a potential market correction ahead as growth momentum stabilizes.

Key Findings

Data-driven insights

•High price-to-income ratio of 17.5 suggests affordability issues.
•Gross rental yield stands at 4.3%, which may not be competitive against higher interest rate environments.
•Price-to-rent ratio at 23.5 indicates renting is more economical than buying.
•Consistent rental yield of 4.3% reflects a stable but not lucrative rental market.

Market Trends

Historical patterns

•Long-term upward trend in property prices, with potential overheating signs in recent years.
•Rental yields have remained relatively stable, suggesting steady rental demand.
•Price growth has shown periods of rapid increase, particularly in urban centers, but is now stabilizing.

For Investors

Actionable takeaways

•Consider waiting for a potential market correction before making significant investments.
•Focus on areas with yields higher than 4.3% to ensure better returns relative to financing costs.
•Evaluate the benefits of renting over buying, especially in urban areas with high price-to-rent ratios.
•Monitor interest rate trends as they could impact property affordability and investment viability.

Market Context

Chile's property market is relatively mature, with significant historical growth but current indicators suggest it may be approaching a cyclical peak. Investors should be cautious of potential corrections and focus on strategic investments that offer higher yields or long-term value.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.