Ecuador, a comparatively small 110,000-square-mile western South American republic with miles and miles of sparkling empty sandy beaches, is experiencing an economic boom that is causing new real estate development across the country. qatar properties
However, don't expect to travel there right now to try to get a piece of the action.
Ecuador is not an Asian tiger, despite its location on the Equator, between Colombia and Peru, and its proximity to the Pacific Ocean. The political scene is tumultuous.
Ecuador is ranked 130th out of 183 countries in the World Bank's Doing Business Report 2012. Ecuador is ranked 164th in another indicator called Starting a Company.
To start a company in Ecuador's capital, Quito, an entrepreneur will need to complete 12 procedures, wait 56 days, and pay the equivalent of 28.8% of GNI per capita, according to Alejandro Espinosa-Wang of the World Bank "siness," he says.
Alternatively, "In Latin America and the Caribbean, the average number of procedures needed is nine. There are only five high-income economies in the Organization for Economic Co-operation and Development (OECD). In Ecuador, it takes an average of 54 days and 12 days to start a company.
According to observations from the London-based Global Property Guide, the International Monetary Fund, Ecuador's National Bureau of Statistics, the Central Bank of Ecuador, the World Bank, and author David Morrill, Ecuador has some impressive numbers to entice investors.
Among the advantages are:
Investment is increasing as capital becomes more affordable.
Natives are flocking to large cities such as Quito and Guayaquil.
The urban population has grown at an annual rate of 2.7 percent on average since 1990. By 2010, towns accounted for 67 percent of the population.
There is a rush to the Pacific coast, and the Andean and Amazonian regions are experiencing an eco-tourism boom.
There is a strong political will to improve housing conditions for Ecuadorian families.
Expats from the United States are flocking to cities like Quito and Cuenca, where investment interest rates are poor.
Ecuador accepts the US dollar as legal tender.
Since 2007, annual property appreciation has averaged between 8% and 12% across the United States.
After 3.58 percent growth in 2010, growth in 2011 was 5.78 percent (provisional). In 2012, the economy is expected to expand by 5.4 percent.
The public debt is projected to rise gradually from 20.7 percent of GDP in 2010 to 25 percent of GDP in 2015.
Until 2015, the current account deficit is expected to remain stable at about 3.5 percent.
From 2012 to 2015, unemployment is projected to remain steady at about 7.5 percent.
The general index of building permits increased from 166.6 in 2000 to 350.6 in 2006, the last year the data was collected by Ecuador's Bureau of Indexes.
Following the global financial crisis, Ecuador's general construction price index dropped from 229.54 in August 2008 to 210.79 in May 2009. However, building prices have since risen to a record high of 234.569 in January 2012. After a 1.95 percent increase in 2010, construction costs increased by 6.88 percent (+2.18 percent in real terms) in 2011. (-0.53 percent in real terms)
The extreme financial crisis that hit Ecuador in the late 1990s resulted in economic distress as well as social and political tensions. Banks went into default. The rate of emigration increased dramatically. The Sucre was replaced by the US dollar in March 2000 after losing 67 percent of its foreign exchange value in 1999.
Despite concerns about the global economy, the International Monetary Fund reports that Ecuador shows no signs of slowing.
Lower interest rates, a stable exchange rate, and an increasing banking system have all contributed to an increase in real estate investment. Inflation is forecast to hit 5.1 percent this year, according to the Ministry of Finance.
According to author David Morrill, "aside from Quito and Guayaquil, Cuenca and Manta are also experiencing building booms." "Ecuadorians returning from abroad to live or invest, mostly from the United States and Spain, are a significant factor in the residential sector."
Dayuma Roman Jauch, an Ecuadorian architect, adds: "Households have had easier access to mortgages to purchase apartments in urban areas in the last ten years. Large corporations also assist their employees in purchasing homes near their places of employment."
On the political front, President Rafael Correa, a US-educated economist, has been quoted as saying that he prefers to describe Ecuador as an anti-Imperialist country with "revolutionary" politics.
Despite his personal relationship with Venezuelan President Hugo Chavez and some disagreements with the US over economic policy, some observers believe Correa's foreign policy is less confrontational than Venezuela's.
Correa's political policy at home tends to be a blend of Latin social democratic tradition and autocratic left-wing politics. He is promoting affordable housing and protecting the environment, as well as shaking hands with Iranian diplomats.
The government is also addressing poverty and injustice by allocating a larger portion of oil revenues to pro-poor spending.