Cuenca's real estate sector grew by 18% in 2024

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.