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Real estate in Ecuador may be the next hot market for investors and retirees.
Ecuador is one of the smallest countries
in South America. It borders the Pacific Coast and it is crossed
by the Equator. Even if you have never heard of Ecuador before,
I am sure you heard of the Galapagos Islands, which are Ecuadorian
territory.
Ecuador is often called "La Tierra de la Eterna Primavera"
(The land of eternal spring) because of its amazing mountain
weather. In Mountain cities like the Quito (the capital) it is
never below 40, never above 80, and averages a wonderful 64 degrees
year-round. The coast can get a little hot and humid, but never
reaches the extreme temperatures experienced in the States.
Ecuador is a very geographically diverse country. It is divided into 4 regions: La Costa (the lowlands by the Pacific coast), La Sierra (the Andes mountains), El Oriente (the Amazon jungle region) and Las Galapagos (The Galapagos Islands - 13 large islands 600 miles offshore.)
The official currency of Ecuador is the dollar, adopted in 2000 after Ecuador's most severe economic crises caused by the devaluation of it's own currency (the Sucre). This measure eventually made it possible to turn things around and implement a new economic program that has created stability, a free market economy, and some strong financing pillars, all of this despite Ecuador's political whims.
Seven years later Ecuador's real estate
market is booming. There are new subdivisions being built all
over, and many apartment and office buildings for sale, especially
in the major cities: Quito, Guayaquil, and Cuenca. There is a
feverish market for second homes on the beach. The buyers are
not just the locals - there is a great deal of foreign money
being invested in the country.
At the moment (mid 2007) you can buy a brand new home (two stories,
three bedroom, two bath) in a enclosed subdivision in a big and
exiting coastal city like Guayaquil, with a guard at the door
and a swimming pool for as low as $55,000. A nice little apartment
in the heart of Quito with impresive mountains views cost about
35,000. If it is the valleys and lakes what you want, you can
own your perfect farm land with a home for less than $280,000.
You still can find land with direct coastal beach front for as low as $6,000 in some areas. Nice condos with sunset views in Manta or Bahia (both picturesque little towns on the coast) starting at $25,000. I should add that Manta 20 years ago was just a dusty fishing village, and now is one of the most important ports of the south Pacific and the home of a USA military base.
We recently bought a little piece of land, 100 meters from the ocean, for $3,000 in San Vicente, a beach town near the internationally-known surfing village of Canoa. My grandmother is building a small two bedroom vacation home for us there. We expect that by the time it will be done, the whole project including land will cost around $10,000. Yes, that's all, because if you look for, you still can find a sweet real estate deal like this one in Ecuador.
Important Note: After years of stable democracy, things are less certain now (Fall 2007). There is some talk that the president (Correa) may take property from foreigners and even steal (I won't use their nice words for this) the second homes of Ecuadorian citizens. We personally wouldn't invest in real estate in Ecuador at this time. - Steve and Ana
March 2008: It seems that the rumors
of property seizures were just rumors. It seems that Correa realized
he was scaring away money, and scaled back his plans for a "new
socialism" (as he called it). It is probably safe to invest
in Ecuador still, especially in non-sensitive areas.
