Investing in Chilean Patagonia: Opportunities and Key Factors

Why invest in Chilean Patagonia

Chilean Patagonia, and particularly the Aysen Region, offers a unique combination of factors that make it an attractive area for real estate investment.

Sustained appreciation

Property prices in Aysen have shown consistent growth over the past decade. Unlike more saturated markets like Santiago or Vina del Mar, the region still has significant room for appreciation.

Tourism potential

The Aysen Region is home to some of South America’s most spectacular landscapes:

• Queulat National Park and its Hanging Glacier
• Lake General Carrera with its Marble Caves
• The Carretera Austral as a world-class touring route
• Internationally renowned fly-fishing rivers

This tourism potential generates constant demand for accommodation and services.

Extreme zone incentives

As an extreme zone, Aysen has special tax benefits and subsidies that can benefit both residents and investors.

Types of real estate investment

Vacation rental

Cabins and tourism properties along the Carretera Austral and near natural attractions generate income during high season (November to March).

Estimated return: Between 4% and 8% annually on property value, depending on location and management.

Best areas: Puyuhuapi, La Junta, Puerto Guadal, Chile Chico, Cerro Castillo

Long-term rental

Rental demand in Coyhaique is consistent, driven by public servants, healthcare and education professionals, and aquaculture workers.

Estimated return: Between 3% and 5% annually, with high occupancy year-round.

Buy and resell (appreciation)

Purchasing land in future development zones can generate significant medium to long-term returns. Areas with the highest potential include:

• Near new routes or road improvements
• Towns receiving public infrastructure investment
• Areas near tourism projects in development

Project development

For investors with larger capital, developing residential or tourism projects can offer attractive margins in a region with a supply deficit.

Factors to consider

Seasonality

The Patagonian climate is an important factor. Winters are cold and some areas become relatively isolated. This affects:

• The vacation rental season
• Maintenance costs
• Accessibility to some rural properties

Connectivity

Transportation and communication infrastructure has improved but remains challenging in some areas. Verify:

• Year-round road access
• Internet and phone availability
• Proximity to healthcare and services

Regulatory framework

Learn about specific regulations:

• Border zones require authorization for foreigners
• Protected areas have construction restrictions
• Municipal zoning plans define permitted land use

Getting started

1. Define your goal: Rental income, appreciation, personal use, or a mix
2. Establish your budget: Including transaction costs and potential improvements
3. Visit the area: There is no substitute for seeing the land in person
4. Consult local professionals: Real estate agents, lawyers, and accountants in the region
5. Analyze available options: Compare different towns and property types