Encouraging news for Chileans interested in building in 2025 was confirmed this week: the drop in interest rates mortgage loans It is emerging as a measure that could revitalize the construction sector. This was highlighted by Alfredo Echavarría, president of the Chilean Chamber of Construction (CChC), who indicated that, despite the contraction in investment in the sector, the reduction in interest rates would contribute significantly to stimulating housing construction in the country. .
In the last two years, the sector construction has shown a downward trend, with total investment that will close 2024 in negative figures, decreasing by 0.7%. This is due, in part, to low investment in private housing, which is usually financed with mortgage loans. In fact, it is estimated that this investment in private housing will fall by 6.4% in 2024, a figure that would remain stable in 2025 thanks to a weakened comparison base.
Among the factors that have accentuated this crisis are the scarcity of land, permit problems and legal uncertainty, which have limited the development of housing projects. However, the CChC together with the Ministry of Finance have been working on the creation of a mechanism to reduce mortgage rates without impacting fiscal spending. This would make access to financing more viable for future buyers, encouraging the acquisition of homes and, therefore, the development of the sector.
Furthermore, despite the existence of an overstock of housing unsold, prices remain high due to the lack of incentives for new investments in the sector. In 2025, the sale of approximately 44,800 housing units is projected, a figure well below the historical average of 58,000. The reduction in rates could be the necessary stimulus to reactivate the market, allowing greater rotation of units in stock and facilitating the acquisition of properties at more affordable costs.
This measure is even more urgent when observing the area authorized for new constructionswhich has decreased by 18.8% compared to the previous year, reaching its lowest level in 32 years. With fewer new works in progress, reducing rates becomes a key tool to reverse this decline and ensure the development of new projects that satisfy the demand for housing in the near future.
