Residential Real Estate - Ecuador

The Residential Real Estate market market in Ecuador is anticipated to reach a staggering value of US$291.80bn by the year 2024.
With an annual growth rate of 3.83% between 2024 and 2029, the market is projected to expand significantly, reaching a market volume of US$352.10bn by 2029.
It is worth noting that in the global context, China is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$112.9tn by 2024.
The residential real estate market in Ecuador is experiencing a surge in demand due to its affordable prices and attractive investment opportunities.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is 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 for real estate renters as well.

Residential real estate transactions
Residential real estate leases

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 Residential Real Estate market in Ecuador has been experiencing significant development and growth in recent years.

Customer preferences: Customer preferences in the Residential Real Estate market in Ecuador have been influenced by several factors. Firstly, there is a growing demand for modern and well-designed properties, with customers seeking homes that offer both comfort and functionality. Additionally, there is a strong preference for properties located in safe and secure neighborhoods, with access to amenities such as parks, schools, and shopping centers. Furthermore, customers are increasingly interested in sustainable and energy-efficient homes, reflecting a global trend towards environmentally friendly living.

Trends in the market: One of the key trends in the Residential Real Estate market in Ecuador is the increasing popularity of condominiums and gated communities. These types of properties offer a range of amenities and services, including security, swimming pools, gyms, and communal spaces, which are highly appealing to customers. Furthermore, the demand for luxury properties, such as penthouses and high-end villas, has been on the rise, driven by the growing affluence of the middle and upper classes in Ecuador. Another trend in the market is the emergence of real estate development projects in previously underdeveloped areas. As the demand for residential properties continues to grow, developers are exploring new locations and transforming them into desirable residential neighborhoods. This trend has led to an increase in property values and has created new investment opportunities in these areas.

Local special circumstances: Ecuador's unique geography and natural beauty play a significant role in the Residential Real Estate market. The country offers diverse landscapes, including mountains, beaches, and rainforests, which attract both domestic and international buyers. Properties located in these scenic areas command higher prices and are in high demand among those seeking a second home or a vacation property.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Residential Real Estate market in Ecuador. Firstly, the country has experienced a period of relative stability and economic growth, which has increased consumer confidence and purchasing power. Additionally, favorable government policies, such as tax incentives for real estate investment, have encouraged both domestic and foreign investors to enter the market. Furthermore, low interest rates and easy access to mortgage financing have made it more affordable for individuals to purchase residential properties. In conclusion, the Residential Real Estate market in Ecuador is developing and growing due to customer preferences for modern and well-designed properties, the popularity of condominiums and gated communities, the emergence of real estate development projects in previously underdeveloped areas, the country's unique geography and natural beauty, and favorable macroeconomic factors such as stability, economic growth, government policies, and access to mortgage financing.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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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Residential Real Estate - Ecuador

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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