What is UF? Understanding Chilean Property Prices

UF explained

The UF (Unidad de Fomento) is an inflation-adjusted unit of account widely used in the Chilean real estate market. By expressing prices in UF, values remain stable in real terms regardless of Chilean peso inflation.

Why UF is used

Chile has an economy where inflation, while controlled, exists. If you buy a property at 3,000 UF, that price maintains its real value over time. This benefits:

Buyers: Know that the price isn’t artificially “inflated” during lengthy negotiations
Sellers: Protect the real value of their property
Banks: Mortgages in UF maintain their value and installments adjust automatically
Landlords: Rents in UF stay current without needing renegotiation

How it’s calculated

The UF is adjusted daily based on the previous month’s Consumer Price Index (CPI). The Central Bank of Chile publishes its value every day.

Practical example

If a property is worth 3,000 UF and today’s UF value is $37,500 Chilean pesos:

Price in pesos: 3,000 x $37,500 = $112,500,000 CLP
Approximate price in USD: ~$120,000 USD (depending on exchange rate)

Converting UF

To convert UF prices to pesos or dollars:

Check the current UF value on the Central Bank or SII website
Multiply: Price in UF x Today’s UF value = Price in pesos
For USD: Divide the peso result by the current USD/CLP exchange rate

UF in the Aysen real estate market

In the Aysen Region, typical price ranges are:

Property type	Range in UF
1-2BR apartment	1,500 - 3,000 UF
2-3BR house	2,500 - 5,000 UF
4BR+ premium home	5,000 - 12,000 UF
Urban land	500 - 3,000 UF
Rural parcel	300 - 8,000 UF
Ranch / estancia	5,000 - 50,000+ UF

Tips

Always check the day’s UF value when making calculations
UF prices on real estate portals are automatically converted at the day’s rate
If financing with a mortgage, your installments will be in UF and converted to pesos each month
UF is also used for rents, insurance, and other long-term contracts