Cuenca's real estate sector has defied economic challenges, growing by 18% in 2024. Henry Astudillo, head of the Cuenca Chamber of Construction, explains the factors behind this growth.

Despite setbacks like power outages, Cuenca’s real estate market remained strong, with both new and ongoing projects thriving. The city’s safety and tourism appeal have made it a hotspot for investment, with private sector players keen on building plazas, shopping centers, cafes, and accommodation.

Land costs and housing demand have sparked a rise in high-rise developments, boosting urban density. Vertical construction has skyrocketed, with land use capacity jumping from 10% in 2023 to 93% in 2024.

Why is Cuenca attractive for real estate investments?

Cuenca’s reputation as one of Ecuador's safest cities has driven tourism and business investment, especially in the Historic Center. Many developers who had previously moved to larger cities have returned, bringing new investments with them.

“Everything comes back to tourism and security. Developers who left for bigger cities are coming back, bringing their money with them." — Henry Astudillo

The sector is growing steadily but still hasn’t reached pre-pandemic levels, with expectations for more growth in the coming years.

What projects are developers focusing on?

Vertical construction is on the rise due to high land costs, with more apartments being built than houses. Previously, 80% of developments were houses, but now apartments and houses are almost split 50-50. This trend reflects a shift towards denser urban living.

Tourism has also driven the growth of plazas and short-term rental options, like Airbnb units near the Historic Center. Meanwhile, Cuenca’s municipality is developing new hospitals and a shopping mall.

Which areas are expanding the most?

The eastern and southwestern parts of Cuenca are seeing the most growth, with key areas like El Ejido, Puertas del Sol, and Avenida Ordóñez Lasso experiencing strong vertical construction.

How are sales performing?

Sales have slowed due to Ecuador’s weak economy. While national numbers are even more challenging, Cuenca has remained stable.

Did power outages affect construction?

Yes, power outages did affect the sector, particularly for small and medium-sized construction companies. The full impact is still being assessed, but it was a tough quarter for the economy.

What challenges do developers face?

To attract investment, the sector needs political stability, legal security, and consistent government support. The government is currently working on 18 public infrastructure projects that require private investment, totaling around USD 8 billion.

Source: Primicias.

Cuenca ranks as the city with the highest rent prices in Ecuador, according to the National Institute of Statistics and Census (INEC). The average monthly rent is $246.88, higher than other major cities like Guayaquil ($206.31), Manta ($209.18), Quito ($195.60), Loja ($193.11), Esmeraldas ($192.89), Ambato ($187.35), Machala ($185.61), and Santo Domingo ($171.18).

In addition, housing costs significantly impact the price of the Basic Family Basket (CFB), which is the highest in the country at $832 per month. Housing accounts for 29.67% of the CFB, with other costs like food (31.64%) and miscellaneous items (31.98%) contributing as well.

Rent Options in Cuenca

Sofía Pacheco, an accountant and real estate agent, notes that rental prices in Cuenca vary greatly depending on the location and the purpose of the rental.

- For housing: Prices range from $150 for a room to over $500 for an apartment, with the sector playing a significant role in the price.

- For commercial spaces: In the Historic Center, rents range from $6 to $8 per square meter. A small commercial space can cost between $1,000 and $1,200 per month, while larger spaces may exceed $2,000.

Key Areas:

- High rent zones: Areas like Ordóñez Lasso Avenue, Puertas del Sol, El Ejido, and the De Las Américas Avenue have the highest prices.

- Larger properties: San Joaquín, Challuabamba, and Misicata feature spacious homes that can exceed $2,500 per month.

- Affordable options: Places like Las Orquídeas, Los Trigales, Quinta Chica, Huizhil, and rural areas offer rents starting at $120 for smaller rooms or homes.

Pacheco believes Cuenca is an expensive city to live in, primarily due to the cost of living, the availability of basic services, healthcare quality, education, migration trends, and safety.

Foreign Influence on Rent Prices in Cuenca

Lorena Chalco, a real estate advisor at InmuAustro, mentions that in the last 15 years, the arrival of foreigners, particularly from the U.S., Europe, and Canada, has significantly impacted rent prices in Cuenca.

These foreign nationals have concentrated in specific areas, causing rent prices to rise in those neighborhoods.

Source: El Mercurio.