The year 2020 concluded, ratifying its condition as the most economically challenging year for Chile since 2009 and perhaps since the 1982 crisis. Sanitary indicators remained stable during the last part of the year. However, as evidenced in European countries, this balance’s fragility doesn’t allow the economic agents nor the State to resume activities as usual The Central Bank updated the GDP forecasts in the latest IPOM report, expecting a contraction between -5.75% and -6.25% for the year.
On a more positive note, there has been a gradual decrease in the unemployment rate from 13.1% to 10.8% at present which could softly influence a higher demand for office space than the current situation. The office market closed the year as its players owners, investors, and occupiers had anticipated. Class A+B vacancy rate in Santiago increased by 1.7% throughout the year, reaching 6.4%. This result, however, should be assessed prudently in the context of the last five years, as it is equivalent to the 2018 figures and notoriously lower than the vacancy peak witnessed in 2016 (10,6%).Download Santiago Office Market Report Q4 2020