The revaluation, understood as the net increase in the monetary value of a property in a given period of time, is mainly driven by two factors: a significant increase in demand over the existing supply and the characteristics of the environment of the property.
In this context, the arrival of Metro S.A.'s Line 7 will connect, for the first time, the Vitacura district with the subway network, driving transformations in its neighborhoods very similar to those observed in other districts when the train announced its extension plan. This change will encourage commerce and the construction of offices, but it could also generate negative externalities, such as illegal commerce, a greater flow of people in the vicinity and possible increases in crime. In addition, the increase in housing and land values could cause some residents to move to areas with values more in line with their income.
These are the main conclusions of a study developed by the Usach spin-off Neuren, headed by Dr. Ricardo Crespo, an academic from the Department of Geospatial and Environmental Engineering. “We explored the impact that the new Metro line 7 will have on property values in the Vitacura and Isidora Goyenechea sectors. Capital gains are reflected both in low increases and in areas with the greatest potential for growth in housing values, which can reach up to almost 10% just because of the announcement of the line.” highlighted the academic. He added that the study showed a clear difference with a logic supported by the data: in the Isidora Goyenechea area the impact is more moderate, as it is closer to the Tobalaba station (line 1 and its connection with line 4), which already provides it with consolidated accessibility.
“This existing connectivity limits the additional effect of the new line in this sector. On the other hand, as we move towards Vitacura station, the added value begins to increase, as the future line 7 will provide a key connection in an area that is currently less accessible. This logic shows how new metro connections can redistribute property values, especially benefiting areas that are currently less connected,” explained Dr. Crespo.
The team, led by Camila Llamirez, a civil engineer in Geography, used mathematical and economic methods supported by AI algorithms to monetarily quantify the added value of housing adjacent to a future metro station. “The results are varied, since maximum capital gains of between 8% and 9%, with regard to current values, are observed in the blocks near the future Estoril, Padre Hurtado and Gerónimo de Alderete stations, but in turn, capital gains of 6% are observed when the blocks are located near the Brasil and José Miguel Infante stations”, she added.
New career
The Department of Geospatial and Environmental Engineering is preparing to receive the first generation of students of the new career of Civil Engineering in Territory and Environment, who will work with the territory and contribute to its management and understanding by working with high volumes of data.
Dr. Crespo pointed out that future students will face great territorial challenges of the country and the world, such as the increase in population density and climate change. To address them, they will learn to transform data into information by using their personal intelligence and artificial intelligence. “In our career, both intelligences will be enhanced synergistically, allowing us to generate information based on knowledge and technology,” he said.
By generating block-level, citywide capital gains estimates, the algorithms capture the multiple dynamics that influence housing prices, providing a comprehensive yet geographically disaggregated view of the real estate market. The Neuren team's next step is to calculate the added value of a property associated with increased demand for housing and the transformation of neighborhoods. Fortunately, the data, knowledge and AI algorithms that the Usach spin-off has already developed allow it to take this step with confidence.
Neuren is part of the Startups Latam catalog and the portfolio of the APTA Technology Hub.