ECUADOR Law and Practice Contributed by: Randy Arévalo, Diego F. Amen, Darío Vicuña and Sandra Touma Faytong, VIVANCO & VIVANCO
VIVANCO & VIVANCO Edificio World Trade Center Avenida Francisco de Orellana Torre B, Piso 6, Of 605 Guayaquil Ecuador Tel: +593 4 600 8613 Email: rarevalo@vivancoyvivanco.com Web: www.vivancoyvivanco.com
1. General 1.1 Main Sources of Law
integrate residential units, retail spaces and health services; and • driven by e-commerce and export needs, the logis - tics sector has seen robust demand for “last-mile” facilities and specialised warehouses near major ports and airports. Over the past 12 months, the most notable activity has occurred in: • large-scale acquisitions and developments of retail centres in secondary cities, signalling a decentrali - sation of investment; • significant investments in “banded residences” and boutique hotel projects along the Pacific coast and in the Galápagos region; and • expansion of specialised storage facilities in the Guayas and Pichincha provinces to support the agro-export sector. Since Ecuador is a dollarised economy, the real estate market is highly sensitive to global macroeconomic fluctuations and the monetary policies of the United States Federal Reserve. Rising global inflation has impacted the supply chain, increasing direct construc - tion costs, particularly regarding imported materials. 1.3 Proposals for Reform Currently, the real estate regulatory framework in Ecuador – particularly within the Metropolitan District of Quito (DMQ) – is undergoing a phase of regulatory adjustments focused on reactivating the construction sector, attracting private investment and streamlining
In Ecuador, real estate law is a multi-layered frame - work encompassing civil law, administrative law and regulatory provisions. The primary sources are: • the Constitution of Ecuador – guarantees the right to private property and the right to a safe and healthy habitat; • the Civil Code – governing property rights, posses - sion, ownership transfers and security interests; • the Organic Code of Territorial Organization – granting municipalities the authority to regulate land use, zoning and construction permits through the Land Use and Management Plan ( Plan de Uso y Gestión del Suelo – PUGS); and • the Horizontal Property Law – regulating the devel - opment and administration of multi-unit buildings and gated communities. 1.2 Main Market Trends and Deals The Ecuadorian market has been characterised by a shift towards efficiency and diversification: • there is a significant increase in projects seek - ing Excellence in Design for Greater Efficiencies (EDGE) or Leadership in Energy and Environmental Design (LEED) certifications, driven by municipal tax incentives and a growing demand for energy- efficient assets; • investors are moving away from single-purpose buildings towards “live-work-play” ecosystems that
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