Ecuador’s Residential Real Estate Market: A 2024 Snapshot

Ecuador’s residential real estate market saw modest growth in 2024, with a 2.43% increase in projects, rising from 989 in 2023 to 1,013, according to MarketWatch. Here's a breakdown of the market trends:

Top Cities for Real Estate Projects

The largest concentration of residential projects is in cities with high population densities:

- Quito: 605 projects

- Guayaquil: 106 projects

- Cuenca: 82 projects

- Ambato and Ibarra also rank high in activity.

Homes and Apartments Availability

While Guayaquil has fewer projects than Quito, it leads in the total number of units, with 10,865 homes and apartments (42% of the national supply). Other cities follow:

- Quito: 36%

- Manta: 5%

- Machala: 4%

- Cuenca: 4%

This indicates larger-scale projects in Guayaquil compared to Quito.

Demand and Absorption Rates

Ambato and Ibarra showed the best absorption rates in 2024, meaning homes sold faster relative to availability:

- Ambato: 29% monthly absorption rate

- Ibarra: 9%

- Quito: 13%

- Cuenca: 3%

In contrast, Guayaquil and Machala had negative absorption rates, with properties in Guayaquil averaging 40 months on the market before selling.

Key Influences on the Market

- Pricing: Quito’s average price per square meter is $1,262, while Guayaquil's is higher at $1,360.

- Economic Challenges: Limited access to credit due to a slowing economy has impacted sales. The IMF predicts a 0.4% GDP contraction for Ecuador in 2024.

Despite these challenges, cities like Ambato and Ibarra are emerging as dynamic players in the country’s real estate sector.

Source: Primicias.