Punta Arenas, Chile
Punta Arenas is the capital city of the southernmost region of Chile and has a population of around 130,000. Southernmost in the context of Chile puts Punta Arenas just slightly north of Antarctica, so it’s a great place to live if you like the cold.
Punta Arenas is the least developed of the newly developed, smaller cities. Its economy is focused mainly in the primary economic sector of raw materials and agriculture, but, in recent years, it’s established itself as a relatively popular tourist destination for those interested in seeing penguins. Still, though, its service industry is underdeveloped and undefined, leaving a lot of room for investment and improvement, especially for someone with an interest in the hospitality industry.
A less urbanized city like this isn’t for investors looking for immediate returns. Punta Arenas is for those with a long-term eye to investment. You may need to wait a while to see the return, but the low cost of land and buildings right now is exciting nonetheless.
From a legal perspective, there are fewer barriers to entry and fewer obligations when incorporating a business here than there would be in Santiago, for example. This expedited process is primarily due to lower levels of competition. The lack of competition here pays off for those investors who were able to create and establish a foothold early in the market (with year-to-year economic and population growth). They’ll be in the best position to control their market for years to come.