Market Demand

Market rents in the communes of Las Condes, Vitacura and Providencia evidenced a singular growth cycle since the beginning of this year scoring a very significant particularity in this economic crisis, which is that while many activities recorded substantial falls this has increased. The rationale for this so obvious contraciclo is primarily produced by the postponement of the decisions of buying houses and apartments because of the uncertainty that exists in the market or by potential buyers lost their sources of work or are not well your finances. This situation is causing that the leasing market is being kept and could even increase the demand. People who need housing and that have delayed their purchase decision has decided to opt for rent during the next few years and until not again claimed the country’s economy. On the other hand, many of the people who saw their economies affected by the crisis, is opting to sell their property to do faced with their obligations and thus avoid more chaotic situations. So, these people are also now seeking a lease by adding to the increased demand for this market. However, this will not necessarily create an increase in the value of leases by greater demand for produced above all in the greater canon because the market for them the crisis stays or low. Nor it will undergo changes to properties that have a lower value product there is a broad range of unmet and that it will not reach to supplement with a higher demand. The ofertazos produced by the construction companies, which have offered their products with attractive discounts added to state aid through the Supreme Decree 40 and 04 Supreme Decree with which the demand by the UF 2,000 dwellings increased very strongly, easing of banking which on the one hand allowed that rigidities which appeared towards the end of 2008 in the granting of mortgage loans a bank over-reaction to events to product they prevented those who described for a credit for 100% of the value of the House, now were no longer viable.

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