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Real Estate in Ecuador is Hot!

By Gary Phillips

Why is real estate in Ecuador so hot in the face of the falling real estate market in the U.S?  It’s quite simple.  Prices are low. Labor is cheap.  Values are high.  With fewer building restrictions, you are free to let your creative juices flow and fully express! 


Linda and I moved to Ecuador 9 months ago.  We have not bought anything yet, as we are typically the slow type, choosing to live in a country for a while to get to know it, explore various regions, and to try to separate the hype from the truth. 
Real estate in Ecuador
But we are very close to moving ahead on two or three properties, one to build a house on and the other two for investment purposes.  

We feel like the perfect window of opportunity is here now for us, and for others who are ready to see and take advantage of it. 

The economy in Ecuador is rapidly moving forward!  We are finding that real estate and laws in Ecuador are very favorable for foreign investors and with the current political climate here, now is the time to reap the benefits.  International real estate investment has seldom been more favorable!   

Not Sure Where to Put your Hard Earned Money?

If you are anything like us, these last couple of years has been difficult.  I have felt this current market meltdown coming for a long time.  I have also been suspicious of the political climate in North America.  I don’t like what I see happening in my home country.  We are giving away our constitutional rights in order to be “safe.”  Not a very fine trade if you ask me. Thank goodness for the Internet so we can keep connected. 

Linda and I don’t have a huge amount of money, and are therefore very cautious about what we do with it. 

But we also know there are many North Americans, you may be one of them, who have a sizeable nest egg gained from previous investments and are not sure where to put it in the volatile political and investment climate existing in the U.S. today 

Condo for Sale in EcuadorFrom what we have seen here in Ecuador in the last nine months, we have a sense of a coming tidal wave of people wanting to leave the US and head for high ground, not only for financial reason, but for political reasons as well.  

So what makes perfect sense to us is to move to a country that has low living costs and good opportunity for investment.  Real estate in Ecuador, not just for expats, but also for Ecuadorians, is by our observation, booming.  We watched as a 33-lot gated-community here in Cotacachi where we live just sold its last lot a week ago.  The Ecuadorians themselves are building new houses and businesses all over the country. 

We also saw an 8-unit condominium sell out in two weeks last spring, all of the units except one to North Americans.  Click here to read about a condo buying experience.

It appears to us that the international real estate investment climate in this small but incredibly diverse South American country can provide great returns, as well as open the door to an adventurous and exciting new life style.  We love it.  It’s not totally easy, but if it were, what fun would it be?

For those of you who are the suspicious/cautious type like me, you couldn’t find a better place to establish a retreat area, just in case.  Indigenous families locally grow most of the food we eat.  Water in most places is plentiful. 

Personally, we’ve found a nice piece of land with good soil and water where we are getting ready to create a small community of like-minded people to grow our own food and set up an ecological sound sustainability.  

Commercial Real Estate in Ecuador is Sizzling Too!

Real estate in Ecuador

Flower farms are for sale in some of the most beautiful areas of Ecuador that generate nearly $35,000 profit per acre!  African Oil Palm plantations for bio-fuels are also very lucrative and occasionally one is available for sale.  An North American from Texas lives in our area and has build a sizeable business exporting hand-woven sweaters to England, France and Canada. 

A Virginia woman has a batik factory near where we live, and is making a very nice living manufacturing fabric and clothing here and then exporting it to the U.S. market. 

Some of the lowest labor costs in the western hemisphere combined with a favorable work culture and business environment creates a wonderful opportunity for entrepreneurs and investors.  Labor rates start at $5 per day..  

Ecuador Prices Today are Less than Prices
In Central America Four Years Ago


Residential real estate investments abroadFour years ago, Linda and I traveled through Panama, Nicaragua, and Costa Rica.  Real estate in those countries was booming and it continues to do so.  The prices we saw then were far higher than the prices for real estate here in Ecuador today.
For example, in Atacames, one of the most popular beach areas in the north of Ecuador, most beachfront projects are sold out well before the buildings are even open at prices ranging from $65 up to $100 per sq. ft. for a luxury model.   Everything we inspected on our recent market research tour was of good to excellent quality.

As you get away from the popular tourist areas and larger cities, the prices drop considerably.  Here in Cotacachi, about an hour and a half north of Quito, very well constructed, new 1,200-square-foot condos are selling for $45,000.   


Beautiful Architectural Adobe Houses
 Starting at $35 per Sq. Ft.

same price range.  We fell in love with a Quito Architectural firm named Barro Viejo, (old mud) who builds the most amazing houses.   Bare land is still available from $4,000 per acre and up.  If gated communities arEcuador real estatee moreBeautiful adobe houses that rival anything in Santa Fe can also be built in the appealing, there are several such developments available,   

We’re not into super pioneering, but if you are, and enjoy country living, land is even more reasonable.   To find these gems, however, you have to do your homework, investigate carefully, and ideally work with someone who knows the ropes in order to purchase wisely and safely. 

A young couple we know from Alaska recently bought several acres of land about 7 miles from Cotacachi for around a $1,000 per acre.  Another person found 10 acres near town for $20,000, with one of the most incredible views I have seen anywhere in the world!

This Emerging Market is not Without Risk


This is not to say that it is all easy and without risk.  Ecuador is a developing country.  The language and culture are likely very different from what you are accustomed to.  And the concept of time is very different here than in North America or Europe.  That’s why it’s important to ask for assistance from experienced people, and maintain your sense of humor as you learn the ropes of living abroad.   
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