Chile is the world’s longest country north to south and offers an array of climates and terrains from deserts in the north to ice fields in the south. Each of these regions has its own industries and it’s this diversity that has allowed property investors of all experience levels to find a play that works with their goals.
Given that the geographic landscape is Chile is so diverse, Chile has been divided into 15 different administrative regions. These regions are governed by an intendant, appointed by the president, and a regional board. These regions are then subdivided into provinces, each headed by a governor.
This regional division can be a great help for property investors. Depending on what type of real property investment you’re looking for, you can use the economic, industrial, and geographic information of the region to pinpoint the absolute best spot to base your search. This makes it easy to thin-slice your choices. (We can say definitively from years of experience that your degree of success in real estate investments in this country correlates directly to the region chosen; the regional market needs to match your investment purposes.)
Investing in Chile’s Land and Agriculture
Land investors can take advantage of the low living and property costs of Chile’s southern regions, which, while cheap, have demonstrated the greatest rises in property value in Chile, in recent years. Due to the continuing expansion and growth of Chile’s southern cities, investing in organic community projects, where land can be bought and subsequently sectioned off and rented, will by far provide for the largest payoff for land investors. The best regions for land investment are as follows:
Maule
Maule is the region immediately south of the O’Higgins region and is the country’s top region for wine production. With a Mediterranean climate, Maule is an important region for other agricultural production, notable for its wheat and wine production, especially in the city of Talca. This region is a good option for those looking to grow multiple crops on a single property.
Los Lagos
The Los Lagos region is in the Southern Zone of Chile where economy is fueled primarily by agriculture, forestry, and fishing. Puerto Varas, known for its rose gardens, is a popular tourist destination, located near many national parks, and furthermore stands out as a great place to large plots of rustic land at reasonable prices. Moreover, the primary sector-based economy of Puerto Varas is becoming increasingly industrialized, which has increased demand for projects in Puerto Varas.
Bío-Bío
While this region is good for commercial real estate investment, it’s also a good place for land investment. Chillán, a city in northern central part of the region is renowned for its proximity to the mountains and hot springs, making it a popular destination for winter tourists. Just outside of Chillán are vast tracts of green, cut up into large plots sold at low costs.
On Aug. 20, 2015, the government of Chile officially added another administrative region to Chile called Ñuble, with Chillán as its capital city.
Regional capital cities are inevitably important centers of commerce and are ideal locations for companies to move their headquarters. With Chillán now named as a regional capital, there will, without a doubt, be a sharp increase in the demand for homes, offices, and land to be developed. Not only will the general population of the city rise, but there’ll soon be a new little government here, meaning a substantial need for office buildings.
Chillán is far and away the best location to make a real estate investment in Chile right now. No matter what you buy there, the value will rise and there will soon be a high demand for nearly any local commercial enterprise.