Chile MarketBeats

Santiago’s Class A office market continued its recovery during Q2 2026. Vacancy declined to 8.9%, while net absorption exceeded 20,000 sq m, driven primarily by demand in Las Condes and Nueva Providencia. Premium buildings and recently delivered developments captured a significant share of new leasing activity, highlighting occupiers’ preference for high-quality office space.

Santiago’s industrial market recorded a 3.8% vacancy rate in Q2 2026, while net absorption remained close to equilibrium. Approximately 72,000 sq m of new space was delivered during the period, and the development pipeline continued to expand with more than 680,000 sq m under construction. Available space remained concentrated primarily in Class B assets.

During the second half of 2025, the Chilean economy showed signs of greater stability. Inflation declined faster than anticipated, reaching 3.5% in December, with a projected convergence toward 3% during the first quarter of 2026. This scenario was driven by reduced cost pressures and a moderation in the exchange rate.

GDP growth for 2025 is expected to close at approximately 2.4%, bolstered by an increase in investment in machinery and equipment—particularly within the mining and energy sectors. For 2026, growth projections were revised upward to range between 2% and 3%, reflecting greater economic dynamism than previously anticipated.