Economy and Real Estate Market in Chile March 2025

In recent weeks, the economy and real estate market in Chile have shown movements and trends that reflect the complexity of the current landscape. Below are the most relevant aspects.

Unemployment in Chile

The National Institute of Statistics (INE) reported that the unemployment rate in Chile reached 8.4% during the mobile quarter from December 2024 to February 2025. This implies a decrease of 0.1 percentage points compared to the same period last year, although it represents an increase of 0.4 points from the previous mobile quarter. The variation is explained by an increase in the labor force of 0.8% and in employed individuals by 0.9%.

Sectors such as transportation, financial activities, and public administration fueled job creation, while trade, manufacturing, agriculture, and fishing recorded declines. The informal employment rate fell by 1.3 percentage points, standing at 26.1%.

Consumer Confidence

Consumer confidence among Chileans decreased significantly in March: only 28% of the population believes that the economy will improve, and 26% feel secure enough to invest.

Real Estate Market

The real estate market faces significant challenges. According to the Chilean Chamber of Construction (CChC), the sale of new homes dropped by 14% over the past year. After a sharp decline in 2022, demand showed a slight recovery in 2023 with a 2% increase in sales, but the general trend remains concerning for the sector.

In terms of prices, a general decrease is observed: in the Metropolitan Region, apartments dropped by an average of 4.3%, and single-family homes fell by 3.5%. Communes like Vitacura saw sharper declines, with a decrease of 14.53% in the value per square meter of new apartments.

On the other hand, mortgage interest rates average 4.29%, their lowest level in 16 months. This reduction could incentivize home buying and help stimulate the market in the coming months.

Legislative Initiatives

In the legislative arena, the Chamber of Deputies approved a bill aimed at reducing mortgage payments for the purchase of new homes with 115 votes in favor. The initiative will now be reviewed by the Senate Finance Committee.

Investment and Regional Development

The Development Bank of Latin America and the Caribbean (CAF) announced new financing of $1.445 billion for projects in Argentina, Brazil, Chile, El Salvador, and Honduras. The resources will focus on infrastructure, urban mobility, logistics, education, and issues related to migration law, aiming to boost regional development.

Fiscal Deficit and Public Employment

Chile faces a notable fiscal challenge, with public debt exceeding 42% of GDP and a growing deficit. The increase in public employment, coupled with questions about efficiency, has not substantially improved the quality of life.

It is proposed to measure the productivity of the public sector and adapt performance bonuses, starting with key sectors such as education and health, to optimize resources and contribute to reducing the deficit.

Economic Outlook

The Central Bank of Chile projects economic growth for this year between 1.75% and 2.75%. However, external and internal factors could affect these estimates, so surveillance of key macroeconomic indicators will continue.

In summary, the economy and real estate market in Chile are going through a period of adjustments and challenges: some indicators show signs of improvement, while others highlight the need for policies and measures that promote stability and sustained growth.