Click here to subscribe to daily news sent to your inbox!
Click here to subscribe to our weekly eNewspaper sent to your inbox!

Cuenca News

Cuenca land prices remain the highest in Ecuador and there’s no relief in sight

By Liam Higgins

If you’re looking for buildable commercial property on Av. Odoñez Lasso, expect to pay as much as $1,000 a square meter. Three or four blocks off of Lasso, on residential streets, land prices average $400 to $500 a meter. Even if you head several miles out of town, to San Joaquin, Challuabamba or Ricaurte, you will pay $250 to $300 per meter.

New construction in Cuenca could be due for a rebound.
New construction in Cuenca could be due for a rebound.

According to Pedro Medina, president of the Cuenca Chamber of Construction, land prices in Cuenca are the highest in the country and show few signs of coming down. “Now that there is talk that the economy is about to improve, it is even less likely that they will decline,” he says. “The number of land sales are down but owners believe this is about to change,” he adds.

Land prices close to Cuenca have, on average, tripled over the past decade, according to builders and real estate agents. “It has become a major problem for Cuencano families who want to build a home close to the city,” says architect Carlos Rosa. “Even if they want to buy an apartment, prices have risen beyond their reach in many cases. We thought the recession would bring costs down but it has had minimal effect so far.”

One effect high prices have on the real estate market is that more people are renting than ever before. “Rental rates have remained steady but this will change as the economy improves. Then, you will see rents increase.”

Rosa and Medina say that per meter land costs are double and sometimes triple the assessed value. “There has been an effort to bring municipal assessments into line with sales prices, but there is still a large difference,” Rosa says.

Despite higher prices, Medina says that there has been a recent increase in the number of building permits issued for new projects. “There is still a demand for condominiums and several new projects will begin construction within the next few months,” he says. “It is a good sign for the building trade which has been very hard hit by the bad economy. I don’t see a return to construction levels of four or five years ago, but that is possible if the economy rebounds.”

What explains the high prices?

“Cuenca is a city that Ecuadorians want to live in and that element of desirability is a big factor keeping prices high,” Medina says. “The city continues to attract new residents, including foreigners, and many see a bright future because of such projects as the tram and changes to El Centro. The census office projects that the metropolitan area will have a population of more than a million within 15 years.”

Still, Medina worries that high prices are keeping too many home buyers and small businesses out of the market. “If you look at Machala, Riobamba, and Ambato, land prices are less than half what they are in Cuenca, and those cities are growing too. You look at the situation and think something has to change.”

  • John G

    No end in sight? Yeah, right…..

  • Kris Thompson

    Absolutely insane. These prices are higher than Germany. Must be for suckers. Time to move on to another developing country. No value in Ecuador.

    https://www.immowelt.de/immobilienpreise/detail.aspx?geoid=108&etype=3&esr=1&tab=wohnflaeche

  • Carl Compton

    The article on page A3 of yesterday’s El Comercio suggested the two of the factors, but not the only factors, are the influx of foreigners as well as remittances by Ecuadoreans living abroad.

  • Kris Thompson

    The end in sight will be a severe crash right back down to $20 or 30 a sq mt where it belongs. Ecuador GDP per capita is barely about 1/7th of the average Western European country yet land prices are competing with Munich. They must have some huge banana crop there making it a solid investment choice. What a joke!

    • Pixelvt

      not complaining at all, bought a house 5 or so years ago near Colesio,, ,
      and oh yeah, two blocks from a Tram stop, but that was not planned at
      all,just luck ,,..it was a good location to begin with and we knew
      it,,, The market decides value simple as that.

      GDP has nothing to do with market value at all. Smart investing and realizing true value and btw, location counts

  • Ricki

    Even rents by some owners, are so ridiculous, and I hope newbies do not pay $1,200 monthly for a condo!!!! Too many condo projects around now. There is always a real estate crash, n takes many years to return.

  • StillWatching

    I get a kick out of people that try to tell the market what to do and what things should be valued at. I’ve never seen a market in anything that can’t stay irrational longer than you can stay solvent. The first thing my father ever taught me about investing was to never argue with the market. The advice has served me well.

  • John G

    And it will happen.

  • Molarii

    Probably Quito is the same.

    Will be giving other destinations a look.