Cuenca is a charming colonial city in Ecuador that has grown in popularity among expats and foreign retirees over the last few decades.
But Cuenca was not always the popular expat community that it is today. A friend retired to Cuenca back in 2001. At the time, only a handful of other North Americans called this city home. There was only one restaurant that qualified as fine dining. And my friend didn’t meet another English speaker until years after he made the move.
But by 2015, more than 8,000 Americans were living in Cuenca, according to the local paper El Tiempo, and that number increases to 12,000 when you include Canadian and European expats in residence.
[See: 10 Places to Retire Overseas in 2017.]
Some cities lose their character when continually expanding numbers of expats choose to relocate there. But this has not happened in Cuenca. One reason is that this is a fairly large city, with an urban population of more than 400,000 and a metro population of almost 700,000. The number of expats is large, but the density is not what you might fear.
The other reason the city hasn’t been ruined by its expat presence is because the expats living here have been net contributors to the local scene. The city’s current wealth of fine restaurants and cafés would not have materialized without the expat population, and neither would the many services and amenities catering to the expat market. The city is also noticeably cleaner as a result of the expat resident factor.
Cuenca is a beautiful city with cobblestone streets and a well preserved historic center. It’s easy to spend an afternoon strolling through the streets and marveling at the architecture of this Spanish colonial city.
The city also enjoys reliable electricity, modern internet service and drinkable water throughout. For those studying Spanish, Cuenca offers a wide selection of quality schools. The strong indigenous presence here adds a color and vibrancy to the city that’s hard to find elsewhere. Best of all, downtown Cuenca is very walkable, and most people can get by easily with no car.
[See: 10 Tips for Finding a Great Place to Retire.]
The cost of living is low. Granted, it’s not as low as it once was, but Cuenca’s lifestyle is better than ever and still a terrific value for the price.
Real estate is a bargain. Cuenca offers a big inventory of quality properties, and real estate (and everything else) in Ecuador is priced in dollars. While the current strength of the dollar has resulted in reduced costs of living in places like Colombia, Brazil and Europe, being able to spend U.S. dollars provides a level of stability that many retirees find assuring.
Health care is first rate. Cuenca boasts a number of good, modern facilities where you can get world class health care.
Cuenca has a large expat community. If you’re nervous about the idea of making a move overseas, you can rest assured that you’ll have plenty of company in Cuenca to help you with your transition. It’s easy to meet English-speaking friends, and you’ll enjoy everything from fine baked goods to English-language church services and jazz jam sessions.
On the other hand, there are also things about life in Cuenca that you may not like. While some people enjoy Cuenca’s large expat community, others see it as a disadvantage. Your experience in Cuenca will not be that of a pioneer, and expats who want to integrate into the city’s local Ecuadorian society will find it harder to do than it was back in the early 2000s.
The weather may be cool for some. You’ll see a high of around 70 degrees on most days. The strong, high altitude sunshine can make it feel warmer, but it’s really somewhat cool. This weather might agree with you, but warm weather fans may find it chilly.
Traffic has gotten worse in recent years, creating an inconvenience for anyone driving through town. The new tram system might help, but right now traffic is slow. Try to use public transportation when going through the historic center.
[See: The Top Travel Destinations for Retirees.]
Cuenca real estate went through a boom between 2006 and 2014, and property owners enjoyed double digit appreciation year after year. Ecuador’s infrastructure improved dramatically during this time, oil prices were high and crime was down. Ecuadorians living abroad returned home to Ecuador by the thousands, with many settling in Cuenca. But the Cuenca real estate market has slowed down dramatically since that time. Countrywide, real estate sales have been dropping since 2014. Prices have not dropped as markedly as sales, but they’re coming down.
However, new expats continue to arrive, and the expat population is growing. These new folks include more Europeans and North Americans, and a reduced but steady number of retirees. There have also been arrivals from Venezuela and even China.
You should not buy here expecting a quick capital gain in the next year or two. You aren’t likely to see a rapid increase in values. Instead, take a longer view. Cuenca remains a great place to live, work or retire. In fact, life in this city is looking more attractive than ever. The rental demand in Cuenca is still good and increasing, which creates an opportunity for those interested in the idea of owning a rental property to create retirement income. Most important, if you’d like to live or retire to Cuenca, this is the best time in a long time to shop for a bargain.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.
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How Cuenca Became One of the World’s Biggest Expat Retiree Havens originally appeared on usnews.com
