Suffering Chile: the latest news
We know well that the entire globe is being put to the test. In a world where the need for revolution is urgent, not all nations are able to achieve the same results. Today, at Realigro, we wish to describe how one of the most affected markets is moving in terms of real estate. The undisputed star of this column is the Chilean nation.
With a history dating back to pre-Columbian times, Chile is experiencing a truly dramatic situation. Which is struggling to show signs of improvement. Reason why, we decided to take care of it. So, if you are curious, we can inaugurate our column today.
We assume that history, also in this case, is useful for us. Like all countries that have lived through years and years of dictatorship, today Chile finds itself a '' bewildered '' republic. With little ability to adapt to the times. All of this, of course, also pours into the real estate market.
So let's see how real estate is moving starting from the first quarter. Highlight of the Coronavirus pandemic. It goes without saying that the situation is devastating the entire economy. The average price of the new apartments in Greater Santiago increased by only 0.26% from last year until the first quarter of 2020. If you consider that in the same period between 2018 and 2019 the increase was instead of 9.98 %, unsurprisingly how dramatic is evident.
Supply and demand are also falling. Suffice it to say that the houses for sale do not increase in numerical terms and, moreover, the period of time spent on the market has even reached 140 days. A frightening number, which presupposes a real estate bubble at the door. Furthermore, demand, as mentioned above, also appears to remain static. Also, the bureaucracy doesn't help. In the first four months of 2020, the total number of surface areas prepared for the construction of new buildings decreased by 47%. Which means that the construction sector is also in crisis. However, yields remain moderate for rents, with a monthly rate of around $ 390.
The case relating to sales contracts is different, less and less, with a minimum threshold of $ 3,000 per square meter. Overall, the Chilean economy shrank by 15%, and the Central Bank of Chile expects an even more drastic contraction. In short, the situation appears to be truly dramatic. We at Realigro will continue with our mission. That is to be able to disseminate as much information as possible about the international real estate market. Every day, on our portal, you will find all the news relating to this critical period, which we hope will end as soon as possible. While waiting for a rosy ending, we urge you to stay up to date. Always here, always on Realigro!
With a history dating back to pre-Columbian times, Chile is experiencing a truly dramatic situation. Which is struggling to show signs of improvement. Reason why, we decided to take care of it. So, if you are curious, we can inaugurate our column today.
We assume that history, also in this case, is useful for us. Like all countries that have lived through years and years of dictatorship, today Chile finds itself a '' bewildered '' republic. With little ability to adapt to the times. All of this, of course, also pours into the real estate market.
So let's see how real estate is moving starting from the first quarter. Highlight of the Coronavirus pandemic. It goes without saying that the situation is devastating the entire economy. The average price of the new apartments in Greater Santiago increased by only 0.26% from last year until the first quarter of 2020. If you consider that in the same period between 2018 and 2019 the increase was instead of 9.98 %, unsurprisingly how dramatic is evident.
Supply and demand are also falling. Suffice it to say that the houses for sale do not increase in numerical terms and, moreover, the period of time spent on the market has even reached 140 days. A frightening number, which presupposes a real estate bubble at the door. Furthermore, demand, as mentioned above, also appears to remain static. Also, the bureaucracy doesn't help. In the first four months of 2020, the total number of surface areas prepared for the construction of new buildings decreased by 47%. Which means that the construction sector is also in crisis. However, yields remain moderate for rents, with a monthly rate of around $ 390.
The case relating to sales contracts is different, less and less, with a minimum threshold of $ 3,000 per square meter. Overall, the Chilean economy shrank by 15%, and the Central Bank of Chile expects an even more drastic contraction. In short, the situation appears to be truly dramatic. We at Realigro will continue with our mission. That is to be able to disseminate as much information as possible about the international real estate market. Every day, on our portal, you will find all the news relating to this critical period, which we hope will end as soon as possible. While waiting for a rosy ending, we urge you to stay up to date. Always here, always on Realigro!
