Property Development in Chile Exceeded $11 Billion in 2012.

 

Chile's real estate market is still thriving, thanks to the country's solid economic growth and ongoing reconstruction efforts following the 2010 earthquake. properties in qatar

According to a study in the newspaper Estrategia, over $11 billion in real estate projects are currently under construction in Chile, with the majority of them in the Santiago Metropolitan Region. About 72% of these programs are currently in the planning stages.

Housing sales in Chile increased 35 percent in the second quarter of 2012 compared to the same time in 2011. This reflects the market's resilience. According to the Chilean Construction Chamber, sales of apartments and houses in the Greater Santiago Region exceeded 3,500 units per month in May and June this year, the highest level since July 2011. Last May, approximately 7, 000 homes were sold throughout the country.

Construction costs are continuing to increase, owing to the vast amount of construction activity currently underway. In June, the Chilean Construction Chamber's Construction Cost Index climbed to about 4,500 points, its highest level since July 2011.

Given the large number of projects planned or currently under construction, as well as the fact that Chile's unemployment rate is currently about 6.6 percent — near its lowest level in two years — upward cost pressure is expected to continue.

For the rest of the year, however, general inflation levels are projected to remain within the Central Bank of Chile's inflation cap.

The most important residential project in the pipeline is Parque Cousio Macul, which will be situated in Santiago's Pealolén neighborhood. The project, which is being built by Crillón Desarrollos Inmobiliarios, is expected to cost $1 billion and will include the construction of 10,000 homes.

Another large-scale residential project in the Santiago Metropolitan Region is Lomas de Aguirre, which is expected to cost $470 million and will include the development of 5,000 houses.

The Costanera Center project, which is being built by Chilean real estate company Cencosud, is the most significant mixed-use development. When completed, the project will include four towers, a mall, four and five star hotels, and over 300 stores, with a total built area of 700,000 square meters on a 47,000 square meter site. The mall first opened its doors in June of 2012.

The Costanera Center contains the skyscraper Gran Torre Costanera, which has become a modern signature feature of Santiago's skyline. The 63-story tower, which stands nearly 1,000 feet tall, is South America's tallest structure.

Though business morale in Chile remains high, real estate company stock prices have taken a hit due to concerns about new space coming online and could costs. The Santiago Stock Exchange's Construction and Real Estate Index closed at 6,617.83 on August 24, down 10.49 percent on the year and 21.45 percent over the previous 12 months. On August 24, the Santiago Stock Exchange's Retail Index closed at 4,940.90, down.61 percent on the year and 1.21 percent over the previous 12 months.

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