Realigro Real Estate

There was a major pull-back in the real estate market in Chile.

In particular, the residential real estate market in Chile plunged as much as 40 percent late last year. Central Bank interest rate cuts and homebuyer subsidies had helped offset the losses, aided by the flexibility of developers — who in some cases have accepted an old property “as partial payment for a new.”
High demand and low construction costs caused overbuilding in coastal resort areas like Viña del Mar, a beach town with a Mediterranean feel about two hours from Santiago. A few years ago, an apartment with an ocean view in Viña del Mar would have cost 80 million to 100 million pesos. Now, some apartments sell for as little as 50 million pesos ($93,000), while houses in the area cost 70 million to 100 million pesos.
Most foreign buyers in Santiago are multinational executives who work in the city. In Providencia, a popular section of the city, it is possible to find houses for 50 million pesos but it is possible to spend as much as 200 million pesos ($371,000) for houses up in the mountains on the edge of Santiago. 

In Chile construction costs are so low that it is often cheaper to build a new house.
There are some exceptions, in areas where available land is so limited that a price above 200 million pesos is reasonable. A national park, a nature preserve and military-owned land in the area mean that there are very few residential properties available, and the natural beauty and proximity to Santiago make the area one of the most expensive in the country.
Chile’s foreign buyers come from Europe, the United States and Canada. Many Americans who want to retire abroad are now considering Chile because it is more affordable than the South of France or other expatriate retirement havens. Other buyers may have owned vacation homes in Argentina, Panama or Costa Rica, but are looking to Chile because it is believed to be more stable than other Latin American countries.
It is easy for foreigners to buy real estate in Chile because the only requirement is a tax identification number, which can be obtained at a local tax office. 

[from NYTimes]