Cuenca is Ecuador’s fastest growing city and home to the second largest number of foreign residents, a new study shows. The study, conducted by the University of Azuay, the National Office of Census and Statistics and three other organizations reports the city’s population grew by 17.9% since the 2020 census and currently stands at 696,101.
Cuenca city officials report there are more than 50 multi-unit projects currently under construction in the city.
According to the study report, Cuenca’s “boom town” growth is the result of several factors, including its low crime rate, its attractiveness to foreigners and in-migration from coastal and rural areas. It also noted that, per capita, the city is attracting the highest level of investment in the country, almost all of it in the real estate sector.
After Quito, Cuenca is the city with the highest number of foreign residents and the report says they continue to arrive. The municipal government says Venezuelans, U.S citizens and Colombians constitute the largest groups of foreigners, at 17,000, 10,500 and 6.500 respectively. Other nationalities “significantly represented” in the city are Peruvian, Cuban, Argentine, Canadian, Spanish, British and German.
The study also described the downside to rapid growth. “Although Cuencanos overall report a high level of satisfaction with their quality of life, the satisfaction drops off with residents in lower-income groups,” the report says. “These groups complain about the poor quality of public health and city services, difficulty finding housing and gentrification of neighborhoods in the central city.”
Another problem facing the city, according to the report, is the challenge of providing utility infrastructure to meet the growth. “This is made difficult due to the city’s geography, which includes mountains on three sides,” the report says. “Development has increased rapidly, much of it in areas with steep slopes and unstable ground. Although the city recognizes the need for changes to zoning and building regulations, it has been slow to act.”
The city’s geography is a factor in real estate costs as well, the report says. “Prices for land are the highest in Ecuador by a significant margin and this increases sales prices.”
The study says the construction boom in the city is a mixed blessing. “While it provides employment and increased sales for building material suppliers, the new projects are aimed primarily at middle- and higher-income buyers of condominiums, office and retail space,” the report says. “Lower income residents are not only displaced by the projects but complain the projects increase sales and rental costs in other parts of the city.”
The study also reports a “troubling phenomenon” in the occupancy of new condominiums. “Many buyers do not live in the city and choose to leave their units vacant. They view Cuenca as a safe haven for their investment but are not interested in leasing their apartments. It is estimated that 10% to 12% of the completed condominiums purchased in the city since 2022 are vacant.” The report says the absentee buyers are primarily Ecuadorians living in the U.S. and Spain, and residents of coastal provinces, especially Guayas.
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