Coastal Ecuador: fact-checking one of Latin America's hottest real estate markets -- all 1,400 miles of it

October 22, 2008 10:45 by Admin

Although interest in coastal real estate in Ecuador is running at a record high, many misconceptions remain about the coast itself. The following overview of the region attempts to set the record straight.  

The terrain: The landscape is remarkably varied, ranging from broad, flat desert beaches to rocky shorelines where towering cliffs plunge into a frothy sea. Along the north central coast, the beaches are often crowed by rain forests and, in the far south and far north, dense mangrove forests have managed to escape the machetes and chain saws. 

The water: Although Ecuador straddles the equator, water temperatures are cooler than those on Florida’s Gulf beaches during summer months … and water temperature is comfortably swimmable (see caveat below). The powerful Humboldt --or Peruvian-- current draws from the oceans around Antarctica and affects the weather of the entire west coast of South America.  

Ecuador has several great swimming beaches (Playas, Salinas, Ayunge, Olón and Tonsupa are among the best)  but much of tayampehe coast experiences strong surf and swimmers should watch for rip currents and whirlpools. There is a reason why places like Montanita and Canoa have earned spots on the international surfers’ circuit. The most dangerous beach in the country is at Punta Carnero, southeast of Salinas. Swimmers in less than knee-deep water have been dragged to their deaths by the area’s savage currents.

The weather: In general, the period from late November to June is sunny although these are also the months that see the most rainfall. June to November is cloudier but many areas receive plenty of sunshine during this period as well. If you are a sun worshipper, you might want to avoid beaches near the rainforests. On the south central coast, near Machalilla National Park, many days from July to October are socked in by fog. The drizzly niebla is the principle water source for the jungle vegetation. Just as it keeps water temperatures moderate, the Humbodlt current also keeps air temperatures from rising above the low 90s, Fahrenheit. From June to November, you’ll sleep with a light blanket as overnight temperatures drop to the low 60s and occasionally the high 50s. Annual rainfall ranges from five inches near Salinas to more than a 100 around Esmeraldas in the north. There are no hurricanes and violent thunderstorms are rare. The El Nino phenomenon, which occurs on average once every 10 years, can cause flooding and landslides.  

The sand: If you’re looking for pure white sand beaches, a la the North Florida Gulf coast or the the Virgin Islands, Ecuador will probably disappoint you. For the most part, the beach sand is made up of volcanic material with sand color ranging from off-white to deep gray. The sand on most beaches is of a good, consistent granulation and provides comfortable footing. If you swim near cliffs, however, expect lots of rocks. 

The people: Surprising to many outsiders is the fact that the coast is Ecuador’s poorest region. Most coastal Ecuadorians are working class, primarily fishermen, craftspeople and farmers, although there are growing numbers of service workers around the resorts. The vast majority of property owners in resort communities are holiday and vacation residents, not full-time residents. 

Crime: Like the rest of Ecuador, the coast has a low per capita rate of serious crime but petty and property crime can be a problem. Rates of both serious and petty crime are higher in the north than in the south.  

Expat communities: Although enclaves of gringos are forming is a number of areas, you won’t find the heavy concentrations common in Mexican, Costa Rican and Panamanian resort areas -- or even in the Ecuadorian Andean cities of Quito and Cuenca. Manta has the largest number of expats and there are aggregations of several dozen in towns like Bahia de Caraquez and Canoa, What most foreign residents discover is that their neighbors are mostly middle- and upper-income Ecuadorians, and it is more likely that the other foreigner next door is a Colombian or Venezuelan than a Californian or Brit. Because of low prices, many Ecuador expats have found they can afford real estate in both the Andes and on the coast. Cuenca and Quito are the most popular destinations for expats and this is unlikely to change any time soon. The enticement of having a coastal escape, though, is hard to resist.  

Real estate prices: It is true that you can find ocean-front lots for $40,000 and small condos and houses for less than $100,000.Comparing apples to apples, Overseas Vacationer magazine estimates (Apr. 2008) that Ecuadorian coastal real estate costs 35% to 40% of that in Costa Rica and Panama. On the other hand, you will find 1,300 sq ft up-scale condominiums in Salinas, Manta and Atacames, that can run you over $200,000. A number of new developments of low-rise condos and detached houses are under construction or in the planning stages, and these too, will be pricier. For most buyers, the amenities will justify the cost. Overall, in 2007 and early 2008, appreciation on coastal property ran about 20% to 30%.