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Ecuador is fast becoming one of the best options for international investment, both for internal and global situations. Diversity and vastness are its main features, besides its really low prices, compared to the global market.
When comparing a property in Europe, with another one with exactly the same features in Latin America, we can talk about prices differences that range from four, six, or even ten times cheaper. For example, a two bedrooms apartment in London costs about US$600,000, while a similar one in Quito, is around US$110,000.
In the long term, terrorism and environmental issues are just some of the reasons to see the whole of Latin America as one of the most safe and sustainable resources in the world.
The Prices for Property in Ecuador
Property prices in developed countries can’t grow forever. They are more likely to stabilise, if not, to drop after the well known “real estate bubble” bursts.
On the other hand, in Latin America property prices have just started to react to the increase of demand. Despite circumstantial economic ups and downs, price tendencies are definitively on the raise.
Profits for Ecuador Properties
The average rental yield for a property in Ecuador is about 10% to 12% a year, over the value of the property, for permanent rentals. For holiday rentals, it may vary, depending on the area the property is located and the demand it faces in a particular period of time. It is commonly higher, but seasonal variations it make it harder to estimate average profits.
In case you need more information or have doubts on any of these issues, the specialised staff in January First Real Estate will be glad to answer all your questions, click here.
Buying Real Estate in Ecuador
Ecuador’s fickle leadership
Left-leaning Rafael Correa was inaugurated in January 2007 as the newest addition to the growing list of presidents Ecuador has put in office. From 1996 to present, Ecuador already had seven presidents, one of whom only lasted three days. During the past decade, no president ever lasted to serve full term.
The smallest country in the rugged Andean highlands, Ecuador has an array of vibrant indigenous cultures, well-preserved colonial architecture, volcanic landscapes and dense rainforest.
Ecuador prides itself on the Galápagos Islands, its interesting volcanic formations, as well as its rich flora and fauna have been admired and studied by numerous travelers, scientists, and nature-lovers.
Intelligent tourism
Aside from foreign investment, Ecuador is also starting to take advantage of its natural resources for eco-tourism programs. A pioneering example is the Kapawi Ecolodge, south-east of Quito, the capital. Kapawi provides the way into the Amazon Basin rainforest near the Peruvian border.
While promoting eco-tourism in Ecuador, this community-based project also helps the Achuar tribe, which lives in the area. The Kapawi venture helps them by providing jobs and preserving their ancestral lands. Additionally, it is a better alternative to oil exploration in the area.
By 2011, this project will be solely owned by the Achuar people.
Quito (pop. 1.8 million) is described by travelers as the one of the most attractive cities in South America. Its elevation and location near the Equator creates a climate considered as eternal spring.
The old town, called Old Quito, is filled with old churches, buildings and houses. In 1978, Old Quito was declared a World Heritage Site by UNESCO.
However, undoubtedly Ecuador’s most beautiful city is Cuenca, also designated by UNESCO a world heritage site. Surrounded by fertile valleys, this colonial town has narrow cobbled streets, quiet plazas, 19th century architecture and domed churches.
The nearby Inca ruins of Ingapirca are the largest in Ecuador and the most intricate, featuring a sun temple, and some of the finest Inca stonework. The nearby El Cajas National Park is said to resemble parts of Scotland and has great scope for outdoor activities such as walking and hiking.
Best choice in South America
Ecuador is very easy to live in. It is not pro-expat like Panama, but it is very investor-friendly. The climate is wonderful for retirees.
Quito has largest colonial area in the Americas, dating from the 16th and 17th century. The sheer size of the colonial area is the main reason why it is only being slowly developed.
A 20,000-sq. ft. house (1,860 sq. m.) close to the Plaza Grande would cost US$125,000. It would need serious restoration - but the aesthetics you cannot reproduce. A modern 2/3 bedroom condominium in a refurbished building might sell for US$60,000.
Undeveloped coastlines
Equador has one of the most undeveloped coastlines in the world. There are miles of empty beaches, with a range of climates to choose from, from dry and temperate beaches in Guayas province and in Manabi province, to the hotter more humid beaches of Esmeraldas province in the North. Everywhere there is a gentle wind coming off the sea. There are also highly developed beaches such as Salinas, with its high rises, supermarkets and yacht club.
Last year there was a large influx of Americans and Europeans moving,buying in Salinas. Rents have gone up in the past five years by over 40%, and property has increased in value up to 12% per annum on average.
However, foreign investors are warned that because of the problems with corruption, gaining protection for property rights from the local court system has at times been complicated or unsatisfactory.
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