07/09/2025
06 SEP25 'Cuenca has apartments for sale that exceed USD 500,000 — what’s happening in the city?-
"David Flores, president of the Real Estate Association of Azuay, explains how the phenomenon of gentrification and speculation have caused the prices of apartments and houses in Cuenca to skyrocket.
With luxury finishes and facing the Tomebamba River, Cuenca has high-value areas where the price per square meter is around USD 1,500, and some apartments can cost between USD 150,000 and up to USD 500,000 on average.
Like other cosmopolitan and considered safe cities in the world, the Azuay capital is experiencing the phenomenon of gentrification — a process that occurs when wealthier citizens move into these areas, raising the cost of real estate and displacing the local population.
This phenomenon has made it so that Cuencanos or people from other cities in Ecuador looking for houses or apartments find a constant reality: very high costs and very little supply, since properties have been transformed into services to meet tourist and commercial demand.
In the few expansion areas and remaining urban parish lots, businesses are investing in horizontal construction to gain vertical space.
Finding a house or apartment for rent is another headache. Prices can range from USD 400 to over USD 1,000, depending on location and finishes.
For David Flores, president of the Azuay Association of Real Estate Brokers (ACBIR), the problems of speculation and informality are added to gentrification
In an interview with PRIMICIAS, Flores explains how Cuenca is facing this reality of high housing costs.
Rental and housing costs in Cuenca have risen dramatically in the last five years. Why?
The fundamental problem in Cuenca is speculation, not only in rentals but also in sales. That’s because we don’t have a clear source of information to make prices transparent, so citizens can fully access that information. If that existed, speculation would decrease.
Another issue is informality in the real estate sector — specifically brokerage and property transactions. Many people sell or rent their property without legal or technical advice. And then there are unlicensed brokers who provide bad advice.
Unfortunately, we live in a culture where people try to impose prices, and sadly, in some cases, buyers or tenants end up paying them.
In high-value areas, how much does rent or the square meter cost for sales?
It depends first on the type of project. Some projects have medium-level finishes, others luxury, targeting different socioeconomic groups.
Second, it depends on location. Even within the same sector, certain streets or blocks can determine higher values.
For example, in Puertas del Sol, some apartments may reach USD 1,500 per square meter.
In the Historic Center, rents vary depending on rooms, area, and proximity to attractions. You can find apartments or suites from USD 300 to USD 550 furnished.
“You can find a house in Challuabamba, far from the city, but with a pool, home automation, fully automated. That house rents for USD 1,200 — and foreigners pay it.”
— David Flores, president of ACBIR Azuay
Has housing become more expensive because of gentrification?
Gentrification means displacing people who originally lived in an area because outsiders, often foreigners, come in and occupy higher-value services. The original residents then can no longer access them and are forced to move.
Has gentrification been an opportunity or a problem for Cuenca?
From the brokers’ perspective, gentrification itself isn’t the main problem. The bigger issues are speculation and informality.
Where is the housing market shifting for those looking to rent or buy?
Cuenca faces a challenge other cities don’t — very high land costs. This affects residents and developers alike.
Even though an urban plan was approved to densify the city (build higher and thus lower land costs), people are still moving to San Joaquín, Challuabamba, and highland areas like Racar and Sinincay.
What realities exist for those with homes in remote areas?
Clients are tied to budget but still want the best location possible. Unlike larger cities, Cuenca is still relatively compact, so everything is close.
But yes, many areas still lack basic services. For example, a luxury house in a zone with dirt roads, no potable water, or sewage is very hard to sell.
What about homes being used as lodging — how does that affect the sector?
Owners have the right to use their properties as they wish, with some regulations. Some succeed with Airbnb, others fail and prefer fixed rentals. Some condominiums outright forbid short-term rental platforms.
There’s a boom in construction in high-value areas. Who is buying these properties?
Mostly investors. And that’s important — we must analyze whether projects meet citizens’ needs or are being built mainly for foreign investors and migrants.
Could sales become unsustainable and bring prices down?
Not yet. But in a few years, prices may become unsustainable. Sooner or later, people will prioritize affordability over amenities.
No matter how many communal services a building offers, price will always be the deciding factor.
Is there a middle ground to make housing access fairer and more affordable?
Education. Not just for buyers and renters, but also for owners. While supply and demand dictate the market, there are legal instruments that cap rents.
The Tenancy Law is clear: rent cannot exceed one-twelfth of 10% of the property’s municipal cadastral value.
This can harm or benefit owners, since municipal valuations often don’t match reality — sometimes properties are overvalued or undervalued compared to the real market.
Does Cuenca’s reputation as a safe haven for those fleeing violence or as a foreigner-friendly city affect prices?
Not much. Cuenca is attractive mainly because of its safety, beyond tourism."
David Flores, presidente de la Asociación de Bienes Raíces de Azuay, explica cómo el fenómeno de la gentrificación y la especulación han provocado que los precios de departamentos y casas en Cuenca estén 'por las nubes'.
