The selection of these real estate markets as the best places to buy
property for living and investing in Chile is based on variety of sources. The first source is our direct experience with property purchases by
our clients that we have handled this year in these areas of Southern
Chile. The second is the reports we receive through our contacts with
sellers, real estate agents, notaries, registries, and other members of
the communities in Southern Chile that include such things as what
properties have gone on the market this year, how long has it stayed on
the market, price appreciation and depreciation, and number of
foreigners or Chileans that are buying in certain areas. The third
source is the volume of email we receive with inquiries regarding
broken down by area. The final source of information regarding the
market is traffic to our site, page hits correlated with the sorts of
search terms that brought people to our site, and other statistics. So,
here is our conclusions as to where markets for real estate in Southern
Chile and Patagonia is going in 2008 and in years to follow.
Chiloe Real Estate
Chiloe Island has been a mover this year for several reasons. Most
importantly cheap unspoiled land. Chiloe was recently voted by a
committee of national Geographic researchers as one of the most
unspoiled islands in the World. In and around the Ancud area you can
still find very cheap land in the 2 million to 6 million pesos per
hectare price range, even for small subdivided lots with beach front.
Chiloe has many small calm and well protected bays that can give you
the wonders of being on the Pacific ocean, without feeling like you
are ON the Pacific ocean. The Island of Chiloe has a nice balance of
low development, with easy access to major cities like Puerto Montt.
Transportation is excellent, and the food is even better.
Aysen and the greater Patagonia Real Estate
As properties have become more expensive, and have also started to
shrink in size in the Northern portion of the Chilean Patagonia,
buyers have tended to drift deeper south in the Patagonia in 2007.
The areas around Aysen still have some of the larger tracks of land
for sale, often in sizes of over 2,000 hectares. Prices also have not
really been inflated yet, and it would be expected that over the next
5 to 10 years properties prices overall will look more like the ones
you would find in the Futaleufu area now. Land in the Aysen area is
still mostly owned by Chileans, with the influx of buyers being more
geared towards large land purchases for investment speculation,
environmental conservation, or tourism projects.
Futaleufu, Patagonia Real Estate
Futaleufu ( or just Futa ) is still doing it. We had thought with
some of the recent news surrounding various Gold exploration in the
area, the very hot and mostly foreign driven real estate market in
Futaleufu would cool a bit. It did not seem to slow down the land
rush to the area. In fact, there is a bit of a change going on in the
community as foreigners are now buying for more than simple summer
vacation property (North America's winter), but to live all year in
Futa. The town has also developed a bit of a heartbeat in the winter.
We expect this trend of Futaleufu becoming a destination for expats
to retire in Chile to grow over the next 5 to 10 years, but we never
expect it to ever be anything like Panama or Costa Rica (especially
as far as the scorpions and malaria laden mosquitoes go). Futaleufu
for the most part is still discouraging Chilean buyers from Santiago
as almost a official town policy (the mayor's office told us this),
in favor of foreigners that will preserve the environment and respect
their local culture. This is about as Gringo friendly a community as
you will find in Chile.
Property prices still range from about 1 million a hectare up to
around 15 million a hectare for prime property directly on the
Futaleufu or Espolon river. Typical price for a property between 10
hectares and up is around 1 million to 3 million pesos a hectare.
Property prices for properties below 10 hectares, tend to range
around 5 million to 10 million per hectare. For the long-term
investment, there is still growth to be expected; however, for much
of the area the top has been reached for the next 5 years or so. Do
not expect wild price increases as was seen over the last 10 years.
Still, much depends on location. Properties close to the town of
Futaleufu will obviously be more expensive, along with properties on
the more famous rivers and lakes in the area. Get out to some of the
more remote properties, and deals are to be had. Keep in mind
anywhere in the Patagonia, getting to know the neighbors is critical
to finding good deals and at least half the fun of buying and owning
land in Southern Chile.
Strangely, property prices in town are still not that bad. Lots in
the center of town run about 10 million to 30 million, depending on
what sort of structure is on it.
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