Real estate sales fell by 60%

The downward trend in real estate sales, which is felt since July 2015, has remained so far this year. Two factors have affected the construction sector since last year: the announcement of the Capital Gains and Inheritance bills, which were resumed this year, and the country’s economic crisis, resulting in a fall in the demand for houses, departments, etc.

Another factor that will affect the market will be the increase from 12 to 14% of the value added tax (VAT), said Robinson Galarza, manager of the Construction Company Galarza & Galarza. The firm, which has 30 years in the Ecuadorian market, registered a reduction of 50% in home sales during the first half of this year. “People are fearful before the measures taken by the government and prefer not to invest in real state,” said the Manager of this company.

Source: http://www.elcomercio.com/actualidad/ventas-inmobiliarias-iva-impuestos-construcciones.html