THere appears to be a building boom here in Ecuador. At least in the sierra where we live. There are two huge shopping malls being built in Cumbaya alone. New houses, gated communities, apartment, condo and office buildings and businesses are springing up all over the place. Even small land owners are adding on to their dwellings or are buidling new homes in town or in the countryside.
Of course, all construction is brick, cement block or ceramic block or poured concrete.
One of many new apartment buildings in Tumbaco nearing completion.
One of many new homes under construction in Tumbaco.
One of many new office buildings being built in Tumbaco.
Many business and homeowners are adding second and third floors to their buildings.
Preparing to add a future second floor.
A small business under construction in Tumbaco.
All this new construction is occurring under circumstances that would be inhibiting in the United States. Bank loans for new construction are 12% or higher. In addition, roads are being re-surfaced and many government building projects are being planned.
Update, September 2, 2015. It was bound to happen. All the new construction and government over-spending, along with the prospect of increasing taxes and the collapse of the oil prices have brought Ecuador’s real estate “boom” to a near screeching halt. Real estate prices became grossly over-inflated as homeowners and land tried to cash in on ever rising prices. But now in may areas of the country real estate sales have dropped by 50% and new construction has come to a near halt in much of the country. While this is bad news for sellers and building contractors, it could eventually lead to a buyers’ market. If sellers want to sell, prices will have to come down.
Ecuador Life and Culture 
Leave a comment