Here is a Bahia Ecuador real estate review.
Yesterday’s message on terror in the real estate market looked at how panicked investors can create great real estate value in many ways.
Ecuador is a country that has profited greatly from terror created by the evolution of the socio-economic order in the Western industrialized nations. prices are so high… government’s so intrusive…. life so stressed that thousands… perhaps even millions of Americans, Canadians and Europeans are leaving…. most heading south.
One special Ecuador beach area we have recommended many times in the past 15 years is Bahia… plus we have promised opportunities growing when the bridge over the Chone estuary was complete… as it now is.
Here is an update by Jean Marie Butterlin on the Ecuador beach real estate market from Bahia north showing how our predictions have come true.
Bahia the future Punta del Este of Ecuador
We just finished our last coastal tour of 2010 and delegates spent one and a half days in Bahia, San Vicente, Canoa and Jama.
By now everyone knows that the bridge above the Chone river is open, that the new road from San Vicente (just north of Bahia) to Pedernales is well underway and that the 4 lane road from Bahia to Manta should be finished within the next 2 years (which will put Manta at 45 minutes from Bahia), and that the airport in San Vicente is being upgraded.
All this new infrastructure has created a lot of interest so here is an update of what is happening on the real estate market front.
Bahia has maybe 20 apartments/houses for sale out of which about 10 are of any interest. Prices are still lower than Manta at about $60 to $70/sq.ft.
Here are delegates on our real estate tour looking at a 1,200 square foot Bahia condo offered at $76,000.
The view is spectacular. The completed bridge is seen in the distance.
Bahia has several new condo projects right on the beach. Three are in various stages of development, one sold out very quickly. Another is 40% sold and construction will start in January for a completion in December 2011 at prices ranging from about $80/sq.ft to $115/ sq.ft. This is a good option if one can wait.
I have negotiated some freebies with the developer for our delegates and Ecuador Living subscribers.
San Vicente-Canoa: There is growing activity in these areas right now. Beach lots outside of Canoa run about $80/sq. m2 although there are distortions in this market.
Delegate at a Canoa beach…
For example we found two lots currently for sale in the $45/sq.m2 range. These lots will be snapped is a deal that will be snapped up quickly. Closer to Canoa and in Canoa lots can will cost anywhere from $100 to $200/sq.m2.
Canoa-Jama: There are 2 developments I like. One in Coco Beach but all beach lots are sold so one must wait for resales. One is in Jama where an Ecuadorian is buiding nice beach houses in the $200,000 range with about 300 sq.m2 and nice terrasses.
Here is a 3,000 square foot house on the beach…
in Jama for…
Back to Bahia and Rentals.
In Bahia there is a very good rental market and there are about 25 days of the year that earn such high rental returns that owners make 6% to 7% of the condo’s value in less than one month’s renting!
Owners can then enjoy the condo for the rest of the year and have a nice income to cover some expenses.
Bahia has all the features to become the “Punta del Este” of Ecuador within ten years. I can see more and more of the nice yachts coming into the bay, the jetset flooding in during the Christmas season and more developments in the near future.
Delegates on our tour viewed the yachts at the Bahia Yacht Club.
The town is clean, safe and has a brisk night life. The views on the bay and the pacific ocean are just breathtaking. There are not many places like this left in South America or elsewhere with such low prices.
Gary Scott Note:
Merri and I have prepared a Bahia report to help those interested get a better feel of this area.
Order the Bahia Report here.