The most popular properties for foreign buyers, hands-down, are condominiums.

Cuenca is undergoing rapid growth and more than two dozen condominium projects are under construction and more are on the drawing board. Despite high level of sales, apartment prices are still very reasonable due to the fact that the market is driven almost entirely by local demand. Costs for new one-bedroom apartments with very nice tile and wood finishings average between $45,000 and $55,000. A new 2-bedroom, 2-bath apartment, costs between $55,000 and $70,000. A new 3-bedroom, 2-bath unit, with spectacular views of the city and mountains, ranges from $70,000 to $85,000. Older apartments, of course, are less expensive. Buyers can realize 15% to 20% savings purchasing in the pre-construction and construction stages of projects compared to the cost of finished new apartments.

A major advantage of condos is that they are easy to resell.

Investors are taking note of Cuenca's tourism boom (officals estimate that numbers are growing 20% a year) and the increased demand for furnished apartments for foreigners who want to stay in the city for an extended period. Demand exceeds capacity during the busy times of year.

Older but very liveable houses in the 1,300 to 2,000 square-foot range run from $55,000 to $85,000. Many of these have small enclosed gardens and secure parking.

Probably the best bargains in Cuenca today are for larger homes. Beautifully landscaped, finely detailed 3,000 to 5,000 square-foot houses, in Cuenca 's most desirable neighborhoods, can be had for less than $250,000. Many of the homes have guest houses and other out buildings. Similar properties in the U.S. would cost three to four times more. There are also a number of larger homes with acreage available outside of Cuenca. Although the market for larger properties has been sluggish in recent years, the large-house sector seems poised for a rebound. The downside of larger homes is mainentance and upkeep and expenses for caretakers.

For those who want to live in the country but be within a short driving distance of Cuenca, Yunguilla valley, southwest of the city, and the Paute valley, to the east, deserve a close look. Yunguilla is being compared to Vilcabamba because of similarity of weather and terrain. The major difference is that land prices are running 50% to 75% of prices in Vilcabamba.

In general, real estate appreciation in Cueana in the period from 2005 through 2007, was about 13% per year. Although it will affect all new construction, increases in the cost of construction materials due to the devaluation of the U.S. dollar is having the biggest impact on prices of new condos. As of early 2008, new units were selling for about 10% more than at the end of 2007.

Please keep in mind that prices are averages and the cost of particular properties will vary. From 2004 through 2007 there was a surge in real estate purchases by non-Ecuadorians and the pace appears to be quickening in 2008.