Chile is one of the wealthiest nations on the continent and the leader in the region from a human capital perspective. Breathing so much exclusivity and richness, Chile creates high impact and lasting memories that can make a difference and satisfy the needs of someone bored with being in the same place and doing the same thing repeatedly. Riding in a helicopter over valleys and vineyards, hiking beneath mighty granite towers, embracing the fullness of nature, Chile redefines beauty, elegance, luxury, and richness. Aside from tourism, Chile’s cosmopolitan capital, Santiago reveals European architecture and leafy avenues. Santiago contains a significant set of economic assets; an increasingly well-accomplished workforce and accounts for nearly half of Chile’s GDP.
From the implausibly luxurious contrast of breathtaking beauty to the intimidating landscapes ranging from the northern Atacama desert to the Parinacota volcano to the cosmopolitan capital of Santiago, the diversification and luxury of Chile are a must-add to a luxurious real estate investment plan. Chile is a country beautiful in its geography and rich in its culture. While mountain ranges and ocean drapes their edges, the center and southern end of Chile as a country boast of lush valleys, vineyards, farms, and lakes, such unlikeness is unique for a country in South America.
Purchasing a property or investing in Chile’s real estate will make you fall in love and appreciate the encompassing beauty of nature. These cities exude and speak luxury, from the sky-high penthouses to the mansions to beaches, to the mountains. A property in Chile is a must-have. There is no need for deep thinking after the careful selection of cities in Chile. All you have to do is pick a specific city or pick all. After all, the investment will only add to your long list of existing assets.
Chile’s Economy: An Overview
Rising from the poorest nation in the Americas territory to arguably the wealthiest between 1818 and 1890, Chile is one of the greatest amazements in the world’s economic trends. This economy is worth studying as it survived several stages of decline, recessions in the 1920s, and the great depression in the first half of the 20th century. One factor responsible for this outstanding economic success is the state-led partial “industrialization” that began in 1939 when large-scale copper mining replaced nitrate extraction as Chile’s major source of wealth. Till date, Chile is the world’s largest exporter of copper.
Aided by a boost in the mining sector, Chile’s economy grew by 1.2% in 2019 from 2018. But this is low considering the previous year’s 4% growth, based on government estimates. Although Chile’s solid economic fundamentals had undergirded continued GDP expansion in early 2019, uncertainty caused the economy to shrink late in the year. Still, Chile maintains the Pacific Alliance’s best investment profile, making it one of the best places to invest in the world. This type of economy, which fully embraces trade and foreign investment as a growth driver, provides the opportunity to generate new ideas and process innovations.
Also, because Chile is the second least corrupt country in South America and the judiciary is independent, its economic freedom score of 76.8 made it rank the 15th freest in the 2020 Index. To keep up its score of government integrity, the courts enforce property and contractual rights competently, free from political interference. Hence, expropriation (government claiming privately owned property) rarely occurs.
Meanwhile, the recent COVID-19 pandemic has affected the government policies and economic stability in Chile – like the other parts of the world. According to the updated IMF forecasts from 14th April 2020, due to the outbreak of the COVID-19, GDP growth is expected to fall to -4.5% in 2020 and pick up to 5.3% in 2021, subject to the post-pandemic global economic recovery.
A few months after the October 2019 social unrest, the first case of the COVID-19 pandemic in Chile was confirmed in March 2020. President Sebastian Pinera of Chile found himself in a delicate situation in the quest to manage the spread of the virus and mitigate the risks of stirring social discontent birthed from the country’s wave of anti-government riots.
In May 2020, Bloomberg reports that the number of new virus cases rose from 500 per day to over 4,000 per day. In response to this, the government set up travel restrictions, declaration of a state of catastrophe (extended till mid-September), closure of schools, curfews, and bans on public gatherings, and measures to support employment and incomes, and provide liquidity. Among these measures was an asset purchase program in the total amount of US$8 billion over six months. With the injection of funds into the system, the Chilean real estate market is ready for international investments, despite the effects of the COVID-19 pandemic.
Where to Invest
Some cities that ranked most luxurious in Chile are Puerto Montt, Vina del Mar, La Serena, Puerto varas, and the almighty Santiago. Each city carries a story and history that has already been made. Below is our collation of the best cities to invest in Chile and why:
Santiago
Santiago, also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. Santiago is the cultural, political, and financial center of Chile. It is also home to the regional headquarters of many multinational corporations.
There is a promise of great value as the city’s specialization in business can be leveraged to boost foreign direct investment.
Santiago’s housing market continues to grow stronger, thanks to the robust economy. Prices of properties in Santiago have had a steady increase for over 10 years. Properties in Lo Barnechea, Santiago range from the prices of $3, 400, 000 (N1, 348,787,140) to $10,115, 000 (N4, 012,641,741).
Puerto Varas
Puerto Varas, also known as the “city of roses”, is located in the southern Chilean province of Llanquihue, in the Los Lagos Region. The city is famous for its German traditions; its natural environment; and its popularity as a tourist destination. With a scenic location close to the mountains, lakes, forest, and national parks, one cannot help but fall in love with the city of roses. There is more to the city than the vibes it gives when looked at from a real estate investment perspective – this city is a must-have for those looking into expanding their luxurious investment portfolio.
The properties in Puerto Varas, Los Lagos range from $1,107,259 (N439, 251,970) to $2,500,000 (N991, 755,250).
To invest in Puerto Varas, you can purchase a vacation home or build an exotic and luxurious tourist center.
La Serena
Located on the Pacific Coast and gateway to the Elqui Valley, La Serena is a dynamic and modern city of 250,000 inhabitants. It has Mediterranean landscapes and ambiance. The city is pleasant to live in for its climate. Walk down the long Avenida del Mar to choose where to lay your towel or go shop for beautiful art pieces at Recova, the most famous market in the area.
If you own a mining company and would love an expansion or a relocation to Chile as a business executive, the region of La Serena and the north of the country are the areas that offer the most opportunities. La Serena is one of the best places to retire in Chile.
The least luxurious property you can get in La Serena is $534, 310 (N210, 766,861), the highest is within the ranges of $1,683,278 (N663, 995,097) and $1, 807,816 (N713, 121,042).
Vina del Mar
A long walk on the beach; each breath is an appreciation of nature’s greatness. Vina del Mar is a beauty to behold! Vina del Mar, meaning “Vineyard of the Sea” is a city on Chile’s Pacific coast. It is the fourth largest city in Chile.
The city is defined by the in-depth blueness of the sea, and its urban aesthetics that mixes modem buildings with beaches and large green areas. Many castles and old mansions that belonged to wealthy families adorn the city and are today’s elegant museums or recreation centers. These and countless other reasons are why investing in Vina del Mar’s real estate is a good value for money. Most properties here give unobstructed views of the sea, penthouses, and mansions.
The luxurious properties in Vina del Mar range from the prices of $714, 326 (N 281,776,962) to $1,920,000 (N757, 373,760).
Puerto Montt
Ease your shoulders and take in the beauty before you; peep at the beautiful scenery of the Pacific while sipping a glass of red wine on the porch of your newly purchased home in Puerto Montt. Puerto Montt is a fast-growing city in the south of Chile, just north of Chiloé Island.
It boasts magnificent views of the ocean and towering peaks of the Andes, and a Centre for travelers heading further south along the Carretera Austral, or east to Argentina. Puerto Montt has grown significantly through the rise of Chile to become the second-largest salmon producer in the world, meaning it has a level of economic stability and potential growth.
A 3-bedroom apartment in Puerto Montt may cost you $816,311 (N322, 006,526), while a 6-bedroom apartment may cost you $1,109,465 (N437, 645,665).
The Buying Procedure
The Chilean legislation allows any individual or corporate body to acquire and own real estate in Chile, whether or not they are residents. To foreigners looking to add to their luxury real estate investment portfolio, the buying procedure is almost the same as the buying procedure of any other country. With proper planning and a good bi-lingual lawyer, investing in real estate in Chile is hassle-free. To purchase a home or land in Chile, you need the following:
- A passport number
- A formalized contract
- The title report for the property
- RUT is a number used to keep track of foreigners for tax purposes. A RUT number can be obtained by going to the tax services in Chile.
There are certain buying restrictions, most importantly, the Chilean constitution guarantees foreigners the same rights and Chilean citizens when investing in real estate. Chile has strong legal protection of property rights. The exceptions and restrictions might come up with national securities.