Housing prices surge across Latin America: Knight Frank

Housing prices in several Latin American countries are rising faster than the global average, even as inflation continues to erode household purchasing power, according to Knight Frank’s Global House Price Index for the third quarter of 2025.

Colombia ranked 11th among 55 countries worldwide, posting a 9.5% annual increase in home prices. Mexico followed closely in 12th place with an 8.9% rise, while Brazil ranked 18th with prices up 6.9%. Chile trailed the region with a 3.5% increase, placing 32nd globally.

Knight Frank said the acceleration in nominal price growth across Latin America reflects a mix of easing monetary conditions and persistent inflation pressures. While central banks in the region have largely shifted toward interest-rate cuts, inflation continues to dilute real gains in property values, limiting true affordability for households.

In Peru, inflation closed 2025 at 1.5%, its lowest level in eight years, highlighting uneven price dynamics across the region. Yet, even in lower-inflation markets, real housing price growth remains muted as wage growth struggles to keep pace with rising living costs.

Separate regional surveys underline the trend. Data from the Latin American Real Estate Survey (RIAL) shows that housing prices in major cities rose 6.2% in dollar terms and 1% in real local currency by September. Montevideo, Mexico City and Buenos Aires now rank among the most expensive markets in the region, while Quito and several Argentine provincial cities remain comparatively affordable.

Knight Frank warned that despite easing borrowing costs, inflation remains a key structural obstacle to housing access across Latin America.