In his national address on Wednesday, April 15, President José Antonio Kast presented the “Reconstruction and Economic and Social Development” plan, an initiative comprising more than 40 measures aimed at combining housing reconstruction, economic recovery, formal employment, regulatory streamlining, and fiscal discipline. The message’s emphasis was clear: without investment, there will be no sustainable reconstruction.  

Beyond the political debate, the announcement puts forward a key point for the market: reconstruction is not limited to repairing damaged infrastructure, but requires getting capital flowing again, unblocking projects, and restoring business confidence. In line with this logic, the administration explicitly linked the reconstruction agenda to measures aimed at encouraging private investment, expediting permits, and boosting employment, with the goal of making growth once again the engine of social development.  

The Real Estate Sector as a Cornerstone 

From the very beginning, the government has identified the real estate sector as one of the main pillars of its plan to revive the national economy. 

In that regard, one of the most significant issues—and the one that has generated the most controversy—remains the temporary elimination of the sales tax on new home sales for 12 months, a measure the government has been advocating since March as a tool to reduce inventory, revive construction, and boost employment. According to figures cited by the administration and reported by the press, there are currently nearly 100,000 new homes without buyers, in a context where a housing shortage of some 500,000 units persists.  

If this signal is translated into legislation, the impact could be twofold. In the short term, it would help reduce inventory, boost sales, and revive stalled projects. In the medium term, it could improve the outlook for developers and investors, especially if combined with regulatory changes that reduce uncertainty regarding the approval of projects. Along those lines, the president specifically announced adjustments to shorten the timeframes for invalidation of environmental permits and limit precautionary measures that paralyze approved projects, reinforcing the pro-investment message.  

Finally, he announced a reconstruction for the regions of Valparaíso, Ñuble, and Bío Bío in the wake of the fires, which will receive a total of $400 billion in aid, in addition to an extension of the DFL 2 benefit and an update to urban planning regulations. 

Simply put, the government is banking on the fact that reconstruction will also involve reviving the real estate market: selling existing inventory, restoring jobs in construction, facilitating new developments, and restoring momentum to an industry that is key to growth. The challenge will be to translate that assessment into a viable plan and into concrete, tangible results. But the underlying message has already been established: Chile’s economic reconstruction begins with renewed investment. 

José Pablo González 
Portfolio Manager, Private Debt, Fynsa AGF