Tourism and Real Estate in Chile
Considering Chile’s extremely unique and diverse geographical composition it is no surprise that tourism is quickly becoming one of the country’s principal industries. According to this article from MercoPress Chile’s national tourism service, Sernatur, has indicated that by 2020 it hopes for tourism to be the third largest sector of Chile’s GDP.
It would appear that they are already making headway – listed at number one atop New York Time’s Top 41 Places to Go in 2011 was Chile’s capital city: Santiago. I am proud to admit that when I first read this article, I had already been living in Santiago for two months. I guess we’ll just have to chalk that one up to good judgement. I digress.
Similar to the tourism industry in Chile, the real estate market has also begun to expand and attract foreigners to the country. According to this article from the New York Times, the Chilean real estate market has been receiving a great deal of attention from foreign homebuyers. Here is one interesting excerpt from the article:
Luis Rodríguez, co-owner and regional director of Re/Max Chile, says affluent Americans, especially baby boomers, have increasingly sought out homes. “They are coming here to retire and have a good quality of life,” he said. “You can buy a property that is virtually identical to a California property for a fifth of the price.”
While this article is clearly directed toward a homebuyer audience my own intuition tells me that purchasing real estate in Chile for investment purposes is likely to be equally beneficial and infinitely more profitable. In searching for online content that may support this hypothesis I stumbled upon some very interesting information.
Below are the links to several articles and websites that explore the Chilean real estate market and the investment opportunities it provides:
– This Overview of Chile provided by Global Property Guides includes an interesting tidbit regarding small apartments and their capacity to return gross rental yields of over 10%.
– This article from BusinessInsider provides an interesting assessment of Santiago and the prices per square meter that can be found in different areas of the city.
– According to this article from NuWire Investor Chile is the number one real estate market in Latin America.
– Chile Investments is a real estate consulting firm made up of both foreign and Chilean businessmen that aims to attract foreign investors in real estate. Their website is full of valuable information.
In my next post I will explore the logistics of purchasing property in Chile in greater depth and take a look at notable aspects of the Chilean marketplace that may influence foreign investors.
Thanks for reading!