With rental prices having risen 40% over the last 5 years and annual property appreciation running at around 12% per annum, buying property in Ecuador offers investors excellent returns with little in the way of major risks at the moment.
The property acquisition process is well laid out and straightforward, and there are few restrictions on foreign ownership, the main being the necessity to apply for permission if you are buying property in Ecuador within 50 kilometres from the coast. So where are expats buying in Ecuador?
In this article we look at where to buy property in Ecuador if you want to invest or relocate to the nation…
The majority of expats are currently buying property in Quito. Located in the Andes Mountains, Quito has a year round spring like climate that sits well with expats who want to retire in Ecuador. As the capital of Ecuador it boasts excellent amenities and also has the largest colonial area of any city in South America. Boasting houses from the 16th and 17th century, Old Quito is now a UNESCO world heritage site.
New build 3 bedroom luxury apartments in Quito start from around £65,000 and go up to about £250,000 with suites going in the region of £40,000. A 2-3 bedroom apartment in a renovated building will sell from around £35,000. Within Quito a 1,860 m2 (20,000 ft2) colonial style house in need of renovation will have a price tag of around £100,000 and a large 4 bedroom villa on the outskirts of Quito set on 1.2 acres with an extra house with sauna, tennis court, whirlpool and gatekeeper’s house is currently on the market with Viviun.com for £130,000.
The city of Quito is currently renovating areas of the colonial centre, and this is expected to push prices up - as happened in the cities of Cuenca and Guayaquil where 250m2 town centre lots now go for £45,000.
Away from Quito, Vilacamba is another hotspot for property in Ecuador. Located in Ecuador’s southern sierra, Vilacamba has a cool 25 degree year round climate and is also known for the high number of centenarians who live there! The Hacienda San Joaquin is currently selling lots within a 2,500 acre property from £25,000.
When buying property in Ecuador you’ve also got miles of ocean front property to consider as well. Prices have been rising as more foreigners buy property in Ecuador with prices increasing by 30% per annum in some areas. In Salinas, ocean front apartments are selling from £50 to £65 per m2 and 2-3 bedroom apartments on the second line from the beach start from around £65,000.
For the really adventurous you can push the Beagle out and become the new Charles Darwin! With new government rules you can buy property on the Galapagos Islands, with 3% of the Islands now available for private ownership. There’s currently a 2,600m2 property for sale on Santa Cruz listed on viviun.com for £16,000. Personally we find the thought of anyone buying parts of the Galapagos Islands truly awful…
Buying property in Ecuador is being compared to buying property in Panama 10 years ago. It’s as politically stable as any other country in the region and appears to be becoming a good destination for dependable investing. That said, think about the ethics of any purchase in a protected area please…
