Real Estate - Ecuador | Statista Market Forecast

The Real Estate market market in Ecuador is expected to reach a projected value of US$368.80bn by 2024.
Among the various segments in the market, Residential Real Estate dominates with a projected market volume of US$291.80bn in the same year.
The market is anticipated to exhibit an annual growth rate of 3.02% (CAGR 2024-2029), resulting in a market volume of US$428.00bn by 2029.
In comparison to other countries, United States is expected to generate the highest value in the Real Estate market market, with a projected value of US$132.0tn in 2024.
The real estate market in Ecuador is experiencing a surge in demand for beachfront properties due to the country's stunning coastline and affordable prices.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Ecuador is experiencing significant development and growth in recent years.

Customer preferences: Customers in Ecuador are increasingly looking for affordable and well-located properties. There is a growing demand for housing options that offer convenience, accessibility, and affordability. Many buyers are seeking properties that are close to amenities such as schools, hospitals, and shopping centers. Additionally, there is a rising interest in properties that offer green spaces and recreational facilities.

Trends in the market: One of the key trends in the Ecuadorian Real Estate market is the increasing popularity of urban living. Many people are moving to cities in search of better job opportunities and a higher standard of living. This has led to a surge in demand for apartments and condominiums in urban areas. Developers are responding to this trend by building more high-rise buildings and mixed-use developments. Another trend in the market is the growth of the vacation home market. Ecuador's natural beauty and favorable climate have made it an attractive destination for tourists and retirees. As a result, there is a growing demand for vacation homes in popular tourist destinations such as the coastal areas and the Galapagos Islands. Many investors are capitalizing on this trend by purchasing properties for vacation rentals.

Local special circumstances: Ecuador has implemented several policies and incentives to attract foreign investment in the Real Estate sector. The government has introduced laws that make it easier for foreigners to purchase property in the country. This has led to an increase in foreign buyers, particularly from North America and Europe. Additionally, the government has implemented tax incentives for Real Estate developers, encouraging them to invest in the construction of affordable housing.

Underlying macroeconomic factors: Ecuador's Real Estate market is influenced by several macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and purchasing power. This has contributed to the rise in demand for housing and property investments. Furthermore, low interest rates and favorable mortgage conditions have made it easier for individuals to obtain financing for Real Estate purchases. This has stimulated demand in the market and encouraged more people to invest in property. In conclusion, the Real Estate market in Ecuador is developing and growing due to customer preferences for affordable and well-located properties, the trends of urban living and vacation homes, local special circumstances such as government policies and incentives, and underlying macroeconomic factors such as steady economic growth and favorable mortgage conditions.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Ecuador

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