Spotlight on...Salinas, Ecuador
Date: 11/01/2007Salinas, Ecuador’s largest resort town, is also one of the country’s biggest investment opportunities. Located at Ecuador’s western-most point, Salinas is less than a two-hour drive from the international airport at Guayaquil. Referred to as the Little Miami Beach, the town features an impressive row of white mid- and high-rise condominiums situated on a crescent bay. Although the town has a permanent population of less than 40,000, the number swells to more than 100,000 on holidays when condos, rentals, and hotel rooms are filled to capacity.
The resort is divided by the Salinas Yacht Club, a popular destination for international sailors and embarkation point for fishing tours. The club’s picturesque yacht basin is filled year-round with a glittering array of ocean craft, some taking a break from round-the-world journeys.
Long before it was a tourist stop, Salinas was known for its fishing, and the town still hosts Ecuador’s biggest fishing tournament. At any given time, the city is likely to hold two or three world fishing records. Over the years, local fishermen have hauled in record-breaking sailfish, tuna, and black marlin.
Among the fishermen who have fished Salinas over the years are Ernest Hemingway, Ted Williams, Fidel Castro, and Ted Turner. Cost for a day’s fishing can run from $175 to $500, depending on the size and amenities of the chartered boat.
On holidays, Salinas’s two beaches are thronged with sunbathers and swimmers. Further offshore, jet skiers ply the waters, while overhead, hanggliders ride the thermals. A water park is under construction and is scheduled to open in early 2008. Known for its restaurants, night clubs, and casinos, Salinas shows no sign of relinquishing its position as top dog among Ecuadorian coastal resorts.
For investors looking for a place on the beach with good infrastructure and appreciation potential, Salinas is probably your best bet. Prices for brand-new condominiums are a fraction of those in the southern U.S., and substantially less than comparable properties in Mexico and Central America. Per-square-foot prices for new units under construction run from $75 to $115 per square foot, while resales of newer existing condos start at about $60 per square foot. Although appreciation has been running at about 15% per year, there are signs the local market is heating up.
An International Living reader who paid a pre-construction price of $99,000 for a 1,650-square-foot, 12th-floor oceanfront condo two years ago recently resold it for $155,000—and the unit is still more than a year from completion. A recent resale of a five-year-old, 1,400-square-foot, seventh-floor unit facing the ocean went for $110,000.
A sampling of properties for sale in spring 2007 includes:
• A three-year-old, two-bedroom, two-bathroom, 900-square-foot condo for $57,000
• A 10-year-old, one-bedroom, one-and-a-half-bathroom, seventh-floor condo for $47,000
• A new two-bedroom, two-bathroom, 1,000-square-foot house in a gated community for $46,000.
BOTTOM LINE: If you like classic beach resorts, casinos, good restaurants, deep-sea fishing, lots of activity, and easy access to an international airport, Salinas answers the call. For the investor, the area offers stability and some of the highest real estate appreciation in Ecuador.
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