Abstract

The main objective of this document is to determine the value of the land for residential use, apart from the construction value of a property in Chile. Additionally, this paper characterizes and analyzes the value of land and construction for residential use at the level of Chilean macro zones between 2012 and 2017. In order to appraise the land and the construction of a property the direct method is used, which decomposes the value of a property through a regression according to the construction and land measurements. Main results show that housing stock at market value represented, by the end of 2017, 1.41 times the GDP, growing 85% with respect to 2012 (at current prices). Per components, land accounts for 46% of property value. In houses this percentage rises to 57%, while in apartments it drops to 26%. By geographical area, the East Metropolitan Region explains 31% of the total value of housing in Chile, followed by the Central Zone (20%) and the South Zone (15%).