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UF Chilean Currency Unit Indexed to Inflation
The Chilean Currency Unit Indexed to Inflation, explaining why the UF ensures real estate is protected for inflation in Chile.
December 14, 2022
JLL released its latest White Paper: A Chilean Currency Unit Indexed to Inflation, explaining why the UF (a non-circulating currency implemented in Chile in 1967) ensures real estate is protected for inflation in Chile.
Commercial real estate transactions and lease agreements are stipulated in UF, in this way, rents are protected against inflation. For example, a cap rate on an office asset in Chile might be quoted as UF + 7%. That means the real return is 7%.