Engel & Völkers Puerto Varas, Chile

Second homes and luxury Patagonia resorts with great potential for appreciation in value

Second homes and luxury Patagonia resorts with great potential for appreciation in value


Set in the heart of Chile’s Lake District, Puerto Varas (Chile) on Lake Llanquihue forms the base for many excursions including world-class fly fishing of trout and salmons, skiing, trekking, hiking, rafting and riding tours. Surrounded by countless beautiful lakes and rivers, in the midst of stunning views of the Patagonian forests and various volcanoes in the region, the well known resort has a wealth of recreational amenities to offer. Thanks to its proximity to the Pacific and its good infrastructure, the region is a sought-after location for an exclusive second home. A good, stable economic climate and the flourishing mining sector in particular, are creating additional positive impulses on the market for residential property and exclusive touristic real estate developers in the Patagonia region.

The most desirable residential locations are the land plots set directly on the banks of Lake Llan-quihue and the locations between Puerto Varas and Ensenada. Houses here offer breathtaking views over the lake and the Osorno Volcano. The highest property prices are being reached here as a result. In the case of freehold apartments, interested buyers are paying up to 2,400 Euros (ap-prox. 2,100 pounds) per square metre, and up to 1.5 million euros (approx. 1.3 million pounds) for mansions in prime locations. Recently, new building developments have also occasionally been coming onto the market with prices in the double-digit millions bracket.
The most sought-after kinds of properties are those with a European chalet style and modern buildings with very good energy efficiency values. A current trend is seeing a significant demand for rural properties bordering on to a golf course.

In addition to Puerto Varas, Frutillar, Puerto Octay, Puerto Fonk and Las Cascadas all also offer very good investment opportunities. Their good infrastructure and excellent connections to the airport make these popular places of residence. Alongside these locations, the quiet and more rural regions such as Cochamó or districts around the Petrohué and Todos los Santos lakes are also sought-after locations for investing in a second home but also in exclusive resorts as well .

Virtually all locations in the region offer promising potential for appreciation in house values and big landing as well. Over the past 12 months, prices in all property categories have risen by be-tween five and 12 percent. The high level of demand means that the time-to-market for properties in good locations is currently four to six months. Around 70 percent of properties in the region around Puerto Varas are purchased by native Chilean buyers. The group of interested international buyers is dominated by US American, German, French and Spanish citizens.

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