Chile agricultural land values see significant decade-long increase

An analysis by Colliers indicates a significant rise in agricultural land values in Chile over the last decade. Comparing 2015 to 2026 projections, values have increased by up to 140% in the Biobío, Los Lagos, and Los Ríos regions, and up to 125% in the Maule region.

These increases are driven by land acquisitions from both national and foreign investment funds. Key drivers include the cherry boom through 2022 and a growing interest in the hazelnut industry. Additionally, pandemic-era demand for housing near Santiago led to price increases of 15% to 45% in rural areas of the Metropolitan, Valparaíso, and O’Higgins regions.

Since 2022, national agricultural land values have remained generally stable. This stability is attributed to price fluctuations affecting fruit profitability and a prolonged drought in the north-central zone, which has discouraged investment in affected areas. Despite these challenges, institutional investors view agricultural assets as an inflation hedge and a source of stable returns, benefiting from high dollar values and land appreciation.