From the towering new metro lines in Santiago to the massive mining projects in the north, Chile’s construction industry is building more than just structures—it's building a stronger economy, as evidenced by its CLP 22.4 trillion output in 2023 and growing 4.2% year-on-year.
Key Takeaways
- The Chilean construction industry's total output reached CLP 22.4 trillion in 2023, reflecting a 4.2% year-on-year growth driven by public infrastructure investments.
- Construction sector's contribution to Chile's GDP stood at 6.8% in 2022, up from 6.1% in 2021 due to post-pandemic recovery.
- In Q4 2023, the construction industry's value added grew by 5.1% compared to Q4 2022, fueled by housing and mining projects.
- Chile's construction employment reached 850,000 direct jobs in Q3 2023, up 3.2% from Q3 2022.
- The sector employed 7.2% of Chile's total workforce in 2023, totaling 912,000 workers.
- Average monthly wage in construction was CLP 650,000 in 2023, 15% above national average.
- New residential permits issued totaled 185,200 units in 2023, a 5.6% increase YoY.
- Housing starts in Santiago Metropolitan Region reached 92,000 units in 2023.
- Average size of new residential dwellings was 85 m² in 2023.
- Highway construction investments totaled CLP 1.2 trillion in 2023 under MOP plans.
- Santiago Metro expanded by 12 km with Line 3 opening phases in 2023.
- Port infrastructure upgrades cost CLP 850 billion, handling 45 MT cargo in 2023.
- Shopping mall developments totaled 450,000 m² gross leasable area in 2023.
- Office space completions reached 320,000 m² in Santiago in 2023.
- Industrial warehouses constructed 1.2 million m², mainly logistics parks.
Chile's construction industry grew strongly in 2023, driven by public infrastructure and private projects.
Commercial & Industrial
- Shopping mall developments totaled 450,000 m² gross leasable area in 2023.
- Office space completions reached 320,000 m² in Santiago in 2023.
- Industrial warehouses constructed 1.2 million m², mainly logistics parks.
- Hotel projects added 4,500 rooms across 12 new properties in 2023.
- Retail construction investments were CLP 1.1 trillion in 2023.
- Data center constructions initiated 150,000 m² for tech firms in 2023.
- Manufacturing plants built 850,000 m², focusing on food processing.
- Logistics hubs developed 25 facilities with 2 million m² total in 2023.
- Office vacancy rate dropped to 8.2% post-2023 deliveries.
- Commercial permits issued for 1.8 million m² in major cities 2023.
- Mining processing facilities constructed cost CLP 2.4 trillion in 2023.
- Business parks added 280,000 m² office space in regions outside RM.
- Supermarket chain expansions built 120 stores totaling 400,000 m².
- Industrial cost index rose 6.8% to 138.2 points in 2023.
- LEED-certified commercial buildings numbered 22 new in 2023.
- E-commerce fulfillment centers: 15 new with 500,000 m² in 2023.
- Corporate HQ constructions: 8 towers over 20 floors completed.
- Mixed-use developments integrated 650,000 m² commercial/residential.
- Factory modernizations retrofitted 450,000 m² industrial space 2023.
- Premium office rents averaged CLP 25,000/m²/year in Providencia 2023.
Commercial & Industrial Interpretation
Chile's construction sector, rather than simply rebuilding, spent 2023 building out a national anatomy of commerce—from the warehouse lungs in logistics parks and the retail heart in malls to the corporate office spine in Santiago—all while its industrial cost index ran a slight fever of 6.8%.
Employment & Workforce
- Chile's construction employment reached 850,000 direct jobs in Q3 2023, up 3.2% from Q3 2022.
- The sector employed 7.2% of Chile's total workforce in 2023, totaling 912,000 workers.
- Average monthly wage in construction was CLP 650,000 in 2023, 15% above national average.
- Women represented 12.5% of construction workforce in 2023, up from 10.8% in 2020.
- Unemployment rate in construction dropped to 5.1% in 2023 from 7.2% in 2022.
- 145,000 new jobs were created in construction in 2023, primarily in infrastructure.
- Skilled labor shortage affected 68% of construction firms in 2023 survey.
- Informal employment in sector was 22.3% in 2023, down from 25.1% in 2021.
- Training programs graduated 28,500 workers in construction skills in 2023.
- Labor productivity per worker in construction rose 4.8% to CLP 26.2 million annually in 2023.
- Construction firms reported 15% turnover rate among workers in 2023 due to better opportunities.
- Migrant workers comprised 18.7% of construction labor force in 2023, mainly from Venezuela and Haiti.
- Overtime hours in construction averaged 12 hours per week per worker in Q3 2023.
- Unionization rate in construction reached 14.2% in 2023, with 125,000 unionized workers.
- Safety training covered 92% of workforce, reducing accidents by 11% in 2023.
- Average age of construction workers was 38.4 years in 2023, with 25% under 30.
- 42,300 apprenticeships were filled in construction vocational programs in 2023.
- Wage index for construction rose 8.5% in 2023 amid inflation pressures.
- Remote regions like Antofagasta had 15% higher wages, averaging CLP 780,000 monthly.
- 76% of firms cited labor shortages as top challenge in 2023 CChC survey.
Employment & Workforce Interpretation
Chile's construction sector is booming with record employment and wages, yet it's ironically building its own biggest obstacle as a severe skilled labor shortage undermines the very foundations of its impressive growth.
Infrastructure & Public Works
- Highway construction investments totaled CLP 1.2 trillion in 2023 under MOP plans.
- Santiago Metro expanded by 12 km with Line 3 opening phases in 2023.
- Port infrastructure upgrades cost CLP 850 billion, handling 45 MT cargo in 2023.
- Water treatment plants built numbered 15, investing CLP 450 billion in 2023.
- Renewable energy grid connections added 2.5 GW capacity via construction in 2023.
- Airport expansions at SCL handled 28 million passengers post-2023 works.
- Public works contracts awarded: 1,250 totaling CLP 4.1 trillion in 2023.
- Bridge constructions: 45 new spans averaging 300m length in 2023.
- Irrigation projects irrigated 150,000 new hectares with CLP 320 billion invested.
- Hospital constructions completed 8 facilities with 2,500 beds in 2023.
- Schools built/renovated: 420 units for 250,000 students in 2023.
- Rail infrastructure advanced 45 km of new lines in mining corridors 2023.
- Flood control works protected 120,000 residents with CLP 180 billion spend.
- Public lighting upgrades installed 500,000 LED units in urban areas 2023.
- Sewage systems extended 450 km, serving 1.2 million people in 2023.
- Sports facilities constructed: 65 arenas seating 200,000 total in 2023.
- Road paving covered 2,800 km nationally in 2023 MOP program.
- Desalination plants added 300,000 m³/day capacity via construction 2023.
- Urban parks developed 250 hectares green space in cities 2023.
Infrastructure & Public Works Interpretation
Chile spent 2023 quite literally building a better future, laying down enough concrete, cables, and water pipes to pave the way to progress from the desert coast to the urban core.
Market Size & Growth
- The Chilean construction industry's total output reached CLP 22.4 trillion in 2023, reflecting a 4.2% year-on-year growth driven by public infrastructure investments.
- Construction sector's contribution to Chile's GDP stood at 6.8% in 2022, up from 6.1% in 2021 due to post-pandemic recovery.
- In Q4 2023, the construction industry's value added grew by 5.1% compared to Q4 2022, fueled by housing and mining projects.
- Chile's construction market size was valued at USD 45.2 billion in 2023, projected from USD 42.1 billion in 2022.
- The sector experienced a 3.8% CAGR from 2018 to 2023, reaching a market volume of CLP 24.1 trillion by end-2023.
- Public construction investments totaled CLP 5.6 trillion in 2023, accounting for 25% of total industry output.
- Private construction spending increased by 6.2% in 2023 to CLP 16.8 trillion, led by commercial developments.
- The construction industry's gross fixed capital formation rose to 12.3% of GDP in 2023 from 11.8% in 2022.
- In 2023, construction output per capita in Chile averaged CLP 1.18 million, up 4% from 2022.
- The sector's productivity index reached 112.5 points in 2023 (base 2018=100), indicating efficiency gains.
- Construction investments in mining-related infrastructure boosted sector growth by 2.1 percentage points in 2023.
- Total construction contracts awarded in 2023 amounted to CLP 18.7 trillion, a 7.4% increase YoY.
- The industry's inflation-adjusted growth was 3.9% in 2023, per constant 2018 prices.
- Construction market expanded by USD 3.1 billion in 2023, driven by renewable energy projects.
- Sector's share in total fixed investments was 28.4% in 2023.
- In 2023, northern regions contributed 42% of national construction output due to mining boom.
- Construction GDP growth forecast for 2024 is 4.5%, per CChC estimates.
- The sector's value chain generated CLP 35.2 trillion in economic impact in 2023.
- Construction output index hit 118.2 in December 2023 (2018=100).
- Annual construction turnover for top 50 firms reached CLP 12.5 trillion in 2023.
Market Size & Growth Interpretation
While the Chilean construction industry is carefully building a more significant piece of the economic pie—now at 6.8% of GDP and growing—it's clear that public investment is laying the foundation, but private ambition is putting up the flashy skyscrapers.
Residential Construction
- New residential permits issued totaled 185,200 units in 2023, a 5.6% increase YoY.
- Housing starts in Santiago Metropolitan Region reached 92,000 units in 2023.
- Average size of new residential dwellings was 85 m² in 2023.
- Social housing investments hit CLP 2.8 trillion in 2023 under DS49 program.
- Home completions numbered 172,500 units in 2023, up 4.1% from 2022.
- Residential construction backlog stood at 450,000 units in mid-2023.
- 65% of new homes were multi-family units in urban areas in 2023.
- Mortgage loans for housing disbursed CLP 12.4 trillion in 2023.
- Price per m² for new housing averaged CLP 1.85 million in Santiago 2023.
- Subsidized housing demand exceeded supply by 120,000 units in 2023.
- Energy-efficient homes represented 28% of new builds in 2023.
- Regional housing deficit was highest in Biobío at 98,000 units in 2023.
- Construction cost index for housing rose 7.2% to 142.5 points in 2023.
- 42,500 luxury homes (over 140 m²) were permitted in 2023.
- Post-earthquake reconstruction completed 95% of 25,000 housing units by 2023.
- Prefabricated housing accounted for 15% of residential starts in 2023.
- Average construction time for housing projects was 18 months in 2023.
- Rental housing developments increased 22% with 12,000 new units permitted.
- Sustainable materials used in 35% of residential projects in 2023.
Residential Construction Interpretation
While Chile's housing market shows encouraging forward motion with rising permits and completions, it’s sprinting on a treadmill, as a stubbornly high backlog, a deepening affordability gap, and a regional deficit remind us that building enough homes people can actually live in remains the industry’s real unfinished project.
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