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How profitable is Chile’s real estate sector? – Placement Immo

How profitable is Chile’s real estate sector?

Are you planning to invest? Compared to other markets and investment vehicles, the profitability of Chilean real estate activities is more efficient in the medium to long term.

Whatever the reason for saving (such as a better retirement), the housing market offers a stable return option when investing.

A hallmark of real estate is that it is a defensive asset following UF, so it has a low level of risk in the face of inflation, which is an ideal environment for the profitability of real estate.

But when is the business profitable?

Profitability refers to a financial formula that compares the profit earned from a trade with the initial investment.

So, in general, the profitability of a property is positive when the profit outweighs the cost of acquiring it, and when the business gets the most out of it.

Real Estate Investing: Differences from Other Markets

Investing in the pandemic has exploded as a lifeline for financial self-sufficiency. The most lucrative sectors are food, sporting goods, beauty services, home decoration and pets.

It’s a good short-term option, but can be unstable and unprofitable in an epidemic environment where physical distance is kept constant.

Chile’s real estate market, on the other hand, is designed to provide safe and sustainable profitability, as it is a fundamental desire to remain in high demand and not to disappear in times of crisis.

For example, the figure indicates that the average profitability of departments in the metropolitan area is It increases from 3.5% per year to 4.5% per year.

investment opportunity

According to Colliers International, home prices in the first quarter of 2021 were up 10% compared to 2019 figures.

This means that Chileans have a hard time buying a house or apartment, and the most accessible option is rent.

The continuing demand for housing is therefore one of the great opportunities to invest in the Chilean real estate market.

national benefit

Another thing to consider about the profitability of real estate activities in Chile is that the benefits the state has granted to those who invest in residential buildings are widespread.

This is a DFL2 that provides subsidies for payments of up to 50% of the contribution if the property meets the prerequisites.

This profit serves as a ‘cushion’ that reduces the initial investment to be paid through dividends, and at the same time relieves the burden on shareholders.

increase in capital gains

Capital gains are the perfect term for the real estate industry because of their long-term profitability.

This concept refers to an increase in the value of an asset over time. In the real estate market, this allows investors to generate more returns in the future.

It should be made clear that external factors are essential to the valuation of real estate.

All these characteristics are a set of factors that are analyzed in collaboration with experts who can advise you to make an informed decision.

In this sense, Easy Investment can help you get the most out of your real estate activity’s profitability.