Quito, Ecuador: Low prices, moderately good yields of around 4.7% to 7.7%
Residential Valuation Specialist | December 14, 2018
|Last Updated: Dec. 12, 2018|
|Cumbaya - Apartments||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|150 sq. m.||199,050||819||4.94%||1,327||5.46|
|250 sq. m.||315,750||1,345||5.11%||1,263||5.38|
|450 sq. m.||604,350||2,579||5.12%||1,343||5.73|
|750 sq. m.||1,170,000||4,568||4.68%||1,560||6.09|
|Northern Quito - apartments|
|75 sq. m.||121,575||590||5.82%||1,621||7.86|
|150 sq. m.||198,000||1,115||6.75%||1,320||7.43|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Northern Quito: Bellavista, Gonzalez Suarez, La Carolina and Quito Tenis
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Gross rental yields in Quito, Ecuador - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are quite attractive, though significantly lower than they were a few years so (our research suggests that they have fallen over the past year). Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.
Apartments and houses in Quito, Ecuador both tend to cost around US$1,300-US$1,600 per square metre (sq. m.) or US$121-US$149 per square foot. (The US$ has been the official currency of Ecuador since the year 2000). As always, yields can vary significantly by district, and the buyer who intends to rent the property to tenants should talk to local realtors.
Gross rental yields of apartments in prime districts tend to range from 4.7% to 7.7%
Round trip transaction costs are not high in Ecuador. See our Ecuador residential property transaction costs analysis and Residential property transaction costs in Ecuador compared to the continent.