Much like Costa Rica and Panama before it, Ecuador has gained the attention of expats from the U.S., Canada and Europe. Ecuador’s top five locations for expats offer the unique combination of being largely undeveloped with reasonable real estate prices.
Michael Shick
Whether your tastes run to a beach lifestyle, an Amazonian jungle hideaway, or a mountain retreat, Ecuador Real Estate has something for everyone. Supported by expat friendly policies and a commitment to develop and improve the infrastructure, Ecuador is truly on the cusp of a renaissance for those looking to find a new way of life in Latin America.
What Makes Ecuador Special
There are a number of reasons that expats should consider Ecuador as a possible spot to retire or invest. First and perhaps most important is the fact that the U.S. dollar is the official currency in Ecuador. Being able to calculate the costs of things, without having to consider exchange rates, makes budget allocation much easier.
A second important consideration is that non-residents have the same property rights as Ecuadorian citizens. It is not even necessary to apply for residency in order to own land.
Ecuador has some of the most favorable tax rates anywhere in Central or South America. For expat retirees, the already low assessment is reduced even further to 50% of the amount assessed.
Last, but by no means least, is the fact that so much of Ecuador still retains its authentic and rustic qualities. For expats seeking a less hectic, more traditional lifestyle, the small villages and towns in Ecuador are a great fit.
With so many options, looking at available properties and lots in Ecuador is certainly worthwhile. Finding your tropical paradise begins with just a click of a mouse.
Samuel Irving
Ecuador’s Top Five: Life at the Beach – San Clemente
Located on the Central Pacific Coast, San Clemente has become one of the prime locations for high adrenaline sports like hang gliding, paragliding and kite surfing. Enthusiasts from all over the globe have flocked to this sleepy fishing village to enjoy these adventure activities.
One of the prime draws of San Clemente is its beaches. There are no fewer than seven named beach locations close to town that expats can visit and enjoy.
Being largely undeveloped, San Clemente has lower property costs than larger communities such as Manta or Portoviejo. Similarly, the overall cost of living is much lower for basics such as rent, utilities and other basic services.
In terms of larger investment projects, at present there is only one major effort, the Vistazul Townhouses, in and around the village. Certainly there is ample opportunity for other developers to start projects that will meet the anticipated needs of new expats expected in the region.
Eduardo Santillán Truillo
Life at the Beach Part II – Bahia
It’s not surprising that Bahia is one of Ecuador’s Top Five. Long a favorite beach community, Bahia, or more properly Bahia de Caraquez, has reinvented itself as an “ecocity” that draws eco-tourists and expats from all over the world.
Located on a peninsula at the mouth of the Rio Chone, Bahia was home to the indigenous native city of Caran before being settled by the Spanish in 1628.
The influx of expats over the last two decades has transformed Bahia into a tourist friendly destination with a well-developed infrastructure. A great example of this growth is the bridge spanning the Rio Chone to San Vicente. This bridge has become the major source of traffic between these two communities.
There are many high-rise properties, hotels, and resorts in the city. Even though the number of cluster-type and high-density units is large, Bahia still retains a cleanliness and calm atmosphere not often found in resort-type areas. Ironically, many of the properties sit vacant expect during the “high” (January through April) season as a significant number are vacation homes only.
With many amenities and a significant expat community, Bahia is particularly attractive for those who want the conveniences of “home” (U.S., Canada, or Europe). As the coastal roads continue to improve, visiting and exploring other parts of western Ecuador becomes more convenient and an additional feature of relocating there.
As might be expected, the cost of living in Bahia is somewhat higher than less-developed locations. While rentals in town can run between $1,000-$1,500 range, utilities are still relatively low and, depending on use, may average less than $120 per month for basic services. Importantly, sales prices just outside the city center are more reasonable even for the higher end units.
Meredith Cook
Two Costal Lowlands Getaways – Canoa and Ancon
Separated by roughly 125 miles, the two beach communities of Canoa and Ancon both have real potential for expats looking to get away from it all at the beach. With very little development at either location, immersing in a true, rustic Ecuadorian lifestyle can be a dream come true.
Ancon, located just outside of Salinas, was the first oil-producing location in the area, starting in 1911. Originally the village was home base for British petroleum engineers. Nearly forgotten through the years, the town is now regaining popularity as a vacation spot for Ecuadorians living in the U.S. and for expats discovering the great values that can be found there.
Finding ocean view properties and restored villas for under $150,000 is not an unreasonable expectation. While there is not much in the way of infrastructure at this point in time, as more investors and expats move into the area, improvements and higher prices will not be far behind.
Canoa, to the north, has 17 km of pristine sands, making it the longest beach in Ecuador. The roads in the village are all dirt and the rustic, hippie-like vibe of the place is one of the major reasons that expats have been drawn there.
There are some higher-end properties in and around Canoa but, for the most part, the private homes clustered around the center are modest. As a consequence, property costs remain low and the potential for development is high.
One important aspect to keep in mind is that the lifestyle of both places IS rustic. If a more cosmopolitan environment is a requirement, these small fishing communities may not be for you.
Also, remember that English speakers may not be as numerous as in larger cities. For some expats, having to deal with day-to-day matters in Spanish may be a bit confounding.
Dr. Dicker
Valley Living – Yunguilla: A Hidden Gem
Combining an eco-friendly lifestyle, stunning views, and a true Ecuadorian vibe, Yunguilla is being touted as a more accessible alternative to Vilcabamba. Located a short 45 minutes from the community identified as the “cultural heart and soul” of Ecuador-Cuenca, this area could well become a major expat location as more people discover the potential waiting there.
One big difference is that Yunguilla is not a town but a valley running 104 miles from just outside of Cuenca to the port city of Machala. There are a number of small villages scattered throughout the valley but a large portion has retained its natural, untouched state.
The climate in Yunguilla is very comfortable due in large part to its geography. The valley has an East-West orientation providing ample sunshine and a short rainy season.
Ranging from a altitude of 4500 ft. on the Santa Isabel end to roughly 7000 ft. near Giron, closest to Cuenca, temperatures in the valley range from the low 80s during the day to a very comfortable high 50s-low 60s at night. These moderate numbers also translate into reduced costs for air conditioning; certainly an added benefit not found in most tropical locations.
Although much of the Yunguilla area is underdeveloped, the region is home to a number of prominent and wealthy Ecuadorian families. The result is that most of the development being undertaken is being done by Ecuadorians.
Additionally, the infrastructure is far superior to most of rural Ecuador. Quality water, telephone, and electrical power plus a well maintained and modern highway has made Yunguilla very attractive as a potential expat magnet.
For those seeking an existing residence, the quality of construction in the valley far exceeds many areas of Ecuador. In spite of all the modernization, property values from one end of Yunguilla to the other may range as much as 30% less than comparable properties in Vilcabamba. When the natural beauty and rustic charm of this hidden gem are factored in, Yunguilla can tick many of the boxes expats have for their tropical destination.
Andreas Kay
Cotacachi – Retreat to the Mountains
Nestled between two volcanoes, Cotacachi is becoming one of the more popular expat destinations in Ecuador. Located two hours north of Quito, this mountain town is next to the Cayapas Ecological Reserve with its 750,000 acres of protected forest land.
After online features about this rustic village appeared in 2007, expats began to move into Cotacachi. Having an established expat community certainly can make the transition to life in Ecuador much easier for those who are experiencing life abroad for the first time.
The beautiful Andean vistas, low cost of living and the reasonable property prices have all contributed to Cotacachi’s popularity. The top leather artisans in Ecuador offer their quality products, including coats, shoes, and accessories for sale at prices far lower than in many other locations.
The mountain climate with temperatures in the low 70s during the day to mid 50s at night makes air conditioning almost unnecessary. Rainfall is very moderate; even during rainy season, it is rare to have more than days out of the month with any precipitation.
Property prices, while on the rise, are still quite reasonable for an area with a good infrastructure and amenities. Utilities can run under $60 per month (electricity, water, heat, telephone, cable, and internet) and rents can be under $600 a month for multi-bedroom units.
For those looking to buy, there are a number of choices from small Ecuadorian homes to well-appointed villas. Lots of all sizes are also available for those expats wanting to build their own vision of paradise.
How to Find the Best Place for Expats in Ecuador
The top five areas described above are some of the hottest locations for expats throughout Ecuador. There are many other options that are worth exploring. Understanding the fine points of property ownership and how it can benefit you is an important first step in becoming an expat in Ecuador. Take that step today!!
Pristine beaches, adrenaline-fueled activities, and a favorable economic environment are combining to make San Clemente, Ecuador one of the more promising growth locations for investors and expats. This sleepy fishing village of some 2,000 inhabitants could well become part of the next “Gold Coast” in Pacific Latin America.
San Clemente Beach
Ecuador has made dramatic strides to attract expats and investors. With continued improvements to infrastructure and better access to popular coastal areas, interest in the central Pacific beaches promises to increase tourist traffic as well as those seeking investment benefits or an expat paradise.
The Beaches of San Clemente
There are no fewer than seven distinct beaches between San Clemente and the neighboring bluff known as Punta Bikini. Although each one is named separately, they are actually one continuous stretch of unblemished sand.
In addition to the extreme sports that thrive up and down the central Pacific coast, the sands around San Clemente are sun-kissed most of the year, broad, and not crowded; a perfect location for families and those seeking the tranquility of the ocean front.
San Clemente’s Cultural Connection
Visitors to San Clemente also have the opportunity to experience the Manteña-Guancavilca culture. This pre-Columbian civilization flourished in the region from roughly 600 A.D. until the Spanish arrived in 1532-34.
Noted for their skill in raft building and fishing, (much like their modern descendants) the Manteños worshipped the goddess Umiña whose symbol was a large emerald. Umiña was also worshipped in Peru by the Incas; this would appear to show a connection between the two groups.
There are several archeological sites in Manabi where artifacts of the Manteños have been discovered. The most important site is Agua Blanca–believed to be the capital of the Manteña culture.
Located in the Machalilla National Park, roughly an hour’s drive from San Clemente, Agua Blanca is the location of a number of artifacts from these ancient people. Learning about the Manteños and how they lived gives a unique perspective on how San Clemente’s past is shaping its future.
Improving transportation options make getting there less stressful
While there are no international flights directly to the central Pacific, regular flights into Quito have dramatically improved access. With direct flights from Quito arriving at both Manta and Portoviejo, getting to San Clemente has become significantly more convenient. Car or bus travel from either city is a short ride lasting under an hour.
Lower costs make for better budgeting options
While rental properties are limited in San Clemente proper, nearby communities such as Manta or Crucita have a larger selection. Rents outside of metropolitan areas can be as low as $250 per month with utilities averaging under $50 per month; being on the beach can result in higher costs for air conditioning.
As might be expected for a small village, shopping options are limited. Fortunately the larger towns of Manta and Portoviejo are close by and offer many options for groceries and other items.
The Potential Upside for Investors in San Clemente, Ecuador – A Comparison
San Clemente, Ecuador and other beachfront communities on the central Pacific coast today are reminiscent of Costa Rica in the latter part of the twentieth century. Comparing the two regions side by side is a great way to see the possibilities that San Clemente holds for investors and expats looking for new frontiers to conquer.
When the surfing movie “The Endless Summer II” came out in 1994, it introduced Tamarindo and the surrounding beach towns to the rest of the world. The development that followed along the northern Pacific beaches (Playa Hermosa, Playa Flamingo, Playa del Coco, and Playa Langosta) quickly earned the region the title of “Costa Rica’s Gold Coast.”
San Clemente finds itself in a similar situation today. The Manabi province has become a magnet for adventure sports like hang gliding, paragliding and kitesurfing, much like surfing was for Costa Rica.
Centrally located between Manta and Crucita to the south and Bahia and Canoa to the north, this small fishing village is an ideal location for tourist-centered businesses as well as idyllic beach living.
Favorable market values and real estate laws enhance desirability
With so much undeveloped property available, San Clemente’s market is wide open. Additionally, foreigners have the same property rights as native Ecuadorians; in fact, residency is not a requirement to property ownership.
The only limitations on location are those pertaining to the National Security Areas within 50 km of the borders or coastline. Since San Clemente is a beach village, consulting a real estate attorney to ascertain the status of the parcel being considered is strongly recommended.
Since 2000, the U.S. dollar is the official currency in Ecuador. Without having to navigate issues like conversion values, exchange fees, etc., real estate and commercial transactions become much easier than elsewhere in Central and South America.
One example of San Clemente development
Developers have begun to recognize the potential of the San Clemente area for resorts and multi-unit residences. With the Manta airport just a 40 minute drive away, the Vistazul Townhouse project is an excellent example of the return on investment that can be expected.
Consisting of 70 units spread over a 12 acre site, the low density (25% of the property used for structures) maximizes privacy and “green space.” Located next to a new resort, the Parmazul Artisan Spa Hotel, residents also have the benefits of access to hotel amenities as well as the natural beauty of the beach just 200 feet away.
Before You Go, Consider These Facts
For all the promise that San Clemente holds, it is important to remember that it is still a small fishing village with limited resources and infrastructure. Rustic living may not be for everyone, so deciding if modern amenities are necessary is an important first step to take in deciding whether or not to commit time and money.
With very few expats in residence, the primary language for business and day to day living is Spanish. If having to interact in a foreign language is bothersome, this may not be the best option for a retirement mecca or expat escape.
Life moves at a more casual pace in Latin America and in beach communities in particular. Building projects are apt to take longer than planned for and, as a result, can throw off schedules. Dealing with this kind of uncertainty is not something that everyone is comfortable with.
Ecuador’s “Gold Coast” may be the answer for expats and investors who want to be part of something new and exciting. Visiting San Clemente, walking the uncluttered sands, and immersing yourself in village life is the best way to understand if this is the doorway to the next “endless summer.”