Expat Community > Ecuador

HGQ2112
Joined 2009
Posts: 1640

Real Estate Report - Puerto Cayo

12 years ago

I generally release extremely condensed excerpts from real estate country analysis reports on July 1, 2012, for public consumption. This year, business matters and various personal matters have kept me from being punctual. Utilizing the better late than never theory, I offer them as segmented summaries, with each city having its own thread. I wanted to present them in one Ecuador thread, but it would be huge. Frankly, many people won’t even read them and those that do will likely want to focus on one or two cities. I would say that this format will cause folks to have to “hunt and peck” for data, but I still deemed it the lesser of two evils.

This data is presented only for those who have an interest in their real estate purchase, also being an investment asset. For those just looking to buy a pretty house, no point in reading further. The perspectives shared are not for every buyer. Some have different motivations for their purchase, besides sound investing, and those perspectives should be equally respected.

We have a simple system for rating a locale:

Sell - We recommend selling your asset or portfolio as quickly as possible.
Hold - If you have bought already, hang onto the asset and wait for further market developments. If you have not bought already, then do not buy now, but perhaps begin to look around for future opportunities.
Buy - Means that it is a good time to acquire an initial or additional real estate asset in that sub-market, due to favorable long-term market trends.
Strong Buy - Means that an exceptional market opportunity exists and that the time is right for the immediate consideration of an initial or additional real estate asset acquisition in this sub-market. For those looking at portfolio diversity, spreading assets across “strong buy” markets is advised, prior to focusing on “buy” markets, if investment opportunities is your sole or primary reason for purchasing real estate.

We also employ two trending systems. The first is an upward mobility and downward mobility system intended to dictate if this property market is in an upswing or downswing from the last time we reported on it. Upswing markets will be denoted by an ? and downswing markets by a ?.

Also, we place certain markets “on watch”. This is neither a necessarily good or bad thing, but a caution that a pending review to upgrade or downgrade the market is imminent. We try our best to project whether that review is likely to be positive or negative, but some market dynamics are so complex that this projection is not always 100% accurate. it should be used for guidance and not as statements of certainty.

Without further delay...here is data for the market you selected to view:

Puerto Cayo Buy ?
Puerto Cayo has an attractive beach and, until recently, quite arguably, little else. Not that recent activity has created a seawall of change, but behind the more modest appearances, some major development projects have been planned for the area, which rather than detract from the quaint, tropical, relaxed oceanfront oasis feel, appear to be designed to blend in with the scenic beauty. While 5 years ago, I may have referred to Puerto Cayo as a “poor man’s” Puerto Lopez, Puerto Cayo seems to be headed in a direction to rival and surpass that neighbor 30 minutes to the south. A great deal of this change may have come from Puerto Cayo rightfully framing itself with a more northerly orientation. Most points further south refer to how far they are from Salinas or Guayaquil. Puerto Cayo chose to identify itself with its relatively closer proximity to the city of Manta, the largest oceanfront city in Ecuador. Over the last 5 years, Manta has become more noticeable, sometimes due to go good news - an increased local environment favorable to business investment, and sometimes due to bad news - the closing of an economically important U.S. military base. What cannot be denied is that Manta is a regional presence. Puerto Cayo, by strategically positioning itself as an escape from the hectic city pace of Manta, but with a relatively convenient proximity to the same, for ease of shopping, recreation and business activity, has carved out a niche market proving attractive to many. The chief attraction is, quite simply, pricing. Land and/or built-out real estate can be purchased at a discount in Puerto Cayo, relative to the more pricey Manta market. With the charm of its beach, more attractive valuations, development projects aimed at integrating the natural scenic beauty and the convenience of Manta for day trips, Puerto Cayo has built a sustainable marketing strategy. So much so that I feel compelled to lift its rating to a “buy”, for those that want a relaxed lifestyle, filled with scenic beauty, a good beach and a price points that represents solid value. The only caveat, if you are strictly looking for resale property, is to keep in mind that inventory is very thin. Patience may be the key to making this buy recommendation a successful venture.

Hector G. Quintana
[email protected]
"In a time of universal deceit, telling the truth is a revolutionary act." -- George Orwell, “1984”

Cigna Global Health

Get a quote in 2 minutes from our partner, Cigna Global Health.
Get Quote

Cigna Global Health

Get a quote in 2 minutes from our partner, Cigna Global Health.
Get Quote

Living in Ecuador Guide

Expats in Ecuador share some of the pros and cons of living in Ecuador. Topics covered include where to live, the bureaucracy, the people and more.

Ecuador Forum
Join our Ecuador forum to meet other expats and talk about living in Ecuador.

Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Ecuador.

Best Places to Live in Ecuador

If you're dreaming about living in Ecuador, here are the 15 Best Places to Live in Ecuador in 2023.

Healthcare in Ecuador

Expats in Ecuador share their experiences with healthcare and overseas medical insurance in Ecuador.

Cost of Living in Ecuador

Expats offer insight into the cost of living in Ecuador.

Moving to Ecuador Guide

Expats in Ecuador offer advice to newcomers and people considering a move to Ecuador about clothing, sunscreen, renting before buying, gringo pricing, Ecuadorians politeness and much more.