Ecuador Real Estate and rental prices drop dramatically in 2020

lebowski888 Serial expat

Member since 09 April 2018

lebowski888Serial expat22 November 2020 18:08:43

318

The Real Estate and rental markets are slow and cold in Ecuador. Why?

There is an oversupply of houses for sale and the demand is diminished and unstable in Ecuador, according to the newspaper El Universo.

https://www.eluniverso.com/noticias/202 … ice=mobile

Moreover, Rents have dropped to 20% in Ecuador, according to real estate consultants involved in the market...

Marcos Armijo Fuentes, president of the real estate franchise Travi Bienes Raíces, affirms that in one of the urbanizations of the Vía a Samborondón as Ciudad Celeste, you can today rent a house valued at $ 180,000 with $ 750 or $ 800 per month. Before the pandemic it cost up to $ 1,200 per month.

"The first thing that the clients that assessed in Guayaquil did during the pandemic was to make agreements to pay what was owed and since the contracts were reformulated with prices down for at least one year . I have had cases in which the reduction has been up to 25%, "says Armijo.

The same in Villa Club and La Joya, located next to Av. León Febres Cordero, in Daule, where there are two-story houses available to rent at a monthly price of $ 300 or $ 400 and before COVID-19 living in them cost $ 500 or $ 600, according to Armijo.

https://www.eluniverso.com/noticias/202 … ice=mobile

See also

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cccmedia Ecuador/Colombia Expert

Member since 13 March 2014

cccmediaEcuador/Colombia Expert22 November 2020 22:20:21

10285

lebowski888 wrote:
There is an oversupply of houses for sale and the demand is diminished and unstable in Ecuador, according to the newspaper El Universo....

Rents have dropped to 20% in Ecuador, according to real estate consultants involved in the market...

Even in a pandemic, it's doubtful rents have dropped to 20 percent. More likely they dropped by 20 percent as some of the numbers in the Dude's post more-or-less indicate.

cccmedia

AmeliaAndJP Member

Member since 30 July 2019

AmeliaAndJPMember23 November 2020 13:49:41

We're seeing rent increases and a supply shortage on the coast. Lots of people from Guayaquil and Cuenca are coming here to be in a more rural area away from densely populated cities during the pandemic. I'm guessing this oversupply issue is limited to the cities, while more rural but developed areas are seeing the opposite.

lebowski888 Serial expat

Member since 09 April 2018

lebowski888Serial expat23 November 2020 18:32:53

318

cccmedia wrote:
lebowski888 wrote:
There is an oversupply of houses for sale and the demand is diminished and unstable in Ecuador, according to the newspaper El Universo....

Even in a pandemic, it's doubtful rents have dropped to 20 percent. More likely they dropped by

cccmedia

Good catch. That's what we get for not double checking a machine translation. Enormous difference

user159 Contributor

Member since 11 March 2019

user159Contributor24 November 2020 12:18:13

165

AmeliaAndJP wrote:
We're seeing rent increases and a supply shortage on the coast. Lots of people from Guayaquil and Cuenca are coming here to be in a more rural area away from densely populated cities during the pandemic. I'm guessing this oversupply issue is limited to the cities, while more rural but developed areas are seeing the opposite.

The tourist coast has always had a glut of houses to rent to live in. Most are converted to rooms for day / weekend rentals as it maximises profit. Although things are better now, 10 to 15 years ago you would be hard pressed to find anything at all during the low season