(As of September 29, Chile reported 461,300 cases of Covid-19 – a much higher per capita rate than in neighboring Bolivia and Argentina and even higher than in Brazil – and 12,127 deaths, according to The New York Times.coronavirus map.)
The high-end market in Santiago has been stable for decades, said Luis Novoa, CEO of Chile’s Sotheby’s International Realty. He estimated that the average asking price among real estate at his agency is about $ 800,000, or $ 330 per square foot.
The social unrest that erupted last fall initially led to an increase in the supply of high-end real estate, as wealthy homeowners decided to sell vacation homes, but the trend slowed, Novoa said. Now buyers expect the results of the upcoming national referendum in October. However, investors began to jump on real estate with lower prices and some buy the sight invisible. These conditions also encourage upper class buyers to offer well below the asking price.
In Chile, luxury prices range from $ 750,000 for a family villa in Santiago to $ 20 million for selected properties in Patagonia, said Martin Rivera Saez, director of a luxury agency based in Santiago. However, he added that there has been a shift in what is considered a luxury. In the past, buyers wanted “large, luxurious mansions located in areas with privileged views.” A few years ago, the “concept began to change” and buyers began looking for “less ostentatious” apartments that were easier to maintain.
Given that there is little land for new development, “we have seen vertical compaction, with large single-family homes being replaced by high-end apartments with seven to ten dwellings,” Novoa said. Meanwhile, areas “with large spaces and a better quality of life” are increasingly in demand in the upper middle class.