In these times of turbulence and uncertainty How is the real estate market in Chile faring? The Real Estate Report prepared by the Chilean Association of Investment Fund Managers (ACAFI) and the real estate firm CBRE highlights some clear trends. 

The multifamily format —apartment buildings dedicated exclusively to rental—is one of the standout segments, with 30% annual growth and an occupancy rate of 97.2%. For the period 2022–2024, the report anticipates the addition of 46 new projects to the housing stock, nearly half of which will be completed in 2022.

Another segment of the real estate market in booming is that of storage units, which recorded a vacancy rate at a historic low of 0.46%, which in practice means virtually no availability.

“Net take-up for the half-year reached 145,882 m², slightly above the average for the past 5 years. The low volume does not reflect strong demand for space, but rather is a sign of an undersupplied market and one that has been suffering from the decline in new construction that began in 2019—a trend driven by the low number of building permits approved in previous periods,” the report notes.

In contrast, the Class A office market shows a very different trend. Changes in work patterns following the pandemic have had a significant impact on this segment. The vacancy rate continues to rise—it went from 8.21% in Q2 2021 to 11.12% in Q2 2022—and prices continue to fall —falling from a list price of 0.57 UF per square meter in 2Q 2021 to 0.50 UF in 2Q 2022. A telling indicator of these shifting trends is the Class B office market, which in the first half of the year began to show a slight decline in the vacancy rate, from 12.96% in Q1 to 12.67% in Q2.

You can view the full report here