2024-09-07 07:04:08
Shopping malls in Ecuador, which have an average of 15 stores, are emerging because people are looking for a “15-minute city” to improve their quality of life.
The number of shopping malls in several cities in Ecuador has increased in recent years, according to analyses conducted by the market consultancy firm MarketWatch. This is evidenced by the income from real estate activities, which include the concession and leasing of shopping malls and centers, explains Gonzalo Rueda, general manager of MarketWatch.
Sales from real estate activities, which also include rentals and condominium management, will amount to USD 8.045 billion in 2024, according to the latest forecast from the Central Bank. It adds that the figure is equivalent to an increase of 1.5% compared to the previous year.
Factors that drive them
What is the reason for the proliferation of shopping malls in certain cities in the country? Four factors, explain experts in consumption and real estate in Ecuador.
The first is the development of new residential areas due to population growth, especially in the outskirts of Quito and Guayaquil. Quito’s population has increased by 23% in 10 years, reaching 2.7 million people, according to the 2022 Population and Housing Census.
In Guayaquil, the population has grown at a rate of 17% in the same period. The growth of the population and, with it, of the residential area, leads to the development of shopping malls, because “people are looking for places that are close, they are looking for a city that is 15 minutes away,” says Joan Proaño, vice president of Constructores Positivos and manager of Proaño Proaño Inmobiliaria.
The 15-minute city is an urban planning concept that proposes that most needs and services should be within a quarter of an hour’s distance, especially when walking or cycling. The aim is to improve quality of life by reducing CO2 emissions and travel times by car, which can involve traffic jams.
In Guayaquil, the presence of shopping malls is observed on Vía a la Costa, due to its offer of houses in gated communities. On the other hand, in Quito the phenomenon is observed in the north, in the parishes of Calderón and Pomasqui; and in the east; in the Valley of Los Chillos and the Valley of Tumbaco, made up of the parishes of Cumbayá, Tumbaco and Puembo.
PRIMICIAS conducted a survey of the three parishes at the beginning of July 2024, in which nearly 10 shopping malls were registered. This is explained by the fact that in 10 years, for example, the populations of Cumbayá and Tumbaco grew by 21% and 58%, respectively.
The growth of the valleys occurs despite the fact that the Municipality of Quito seeks to ‘prevent’ people from moving there and to rural areas, due to the high cost of providing basic services to more remote areas.
Why is there a real estate appetite for these sectors? Because they have a supply of buildings or developments with private security, proximity to schools and colleges, main roads, such as Ruta Viva; and proximity to the Quito airport. All of this attracts the middle and upper socioeconomic class. “The number of spaces and the type of businesses in them will depend on the socioeconomic stratum of the sector,” Rueda explains.
Insecurity
MarketWatch explains that the second factor that has encouraged the creation of more jobs is the insecurity that Ecuador is experiencing, due to the presence of more than 20 organized crime and drug trafficking gangs.
Why? The escalation of violence has led entrepreneurs, business owners and citizens to seek shelter when selling or buying.
And shopping malls are a solution, because businesses are grouped together, with private security, which is less expensive if paid for by several stores. That is why people also go to shopping malls in search of “safe” recreational areas.
«“Squares are a meeting place, they have a social aspect, not just a service aspect.” Joan Proaño, Positive Builders
Parking lots
Furthermore, the success of shopping malls is explained by the fact that they are spaces with parking.
A shopping plaza with parking in the parish of Tumbaco, east of Quito, on July 5, 2024. PRIMICIAS
The vehicle fleet has been growing in recent years in several cities in the country, such as Quito, for several reasons, including:
The Covid-19 pandemic has led people with better economic positions to avoid public transport and buy a vehicle.
Entry of cheaper car brands, especially Chinese, with models whose prices start at USD 14,000.
Insecurity, which causes people to avoid walking or using public transport for fear of being robbed.
And it is this last factor that also leads Ecuadorians to look for commercial premises with nearby parking lots that have security.
Telecommuting
Finally, the success of shopping malls is also explained by the adoption of teleworking as a result of the pandemic. People who adopt this work modality, especially from the Z or Centennial generation, often go to restaurants or cafes.
Why? “People seek proximity, that is, feeling close to others, even if they work alone.
“This is a desire that increased after the lockdown due to the pandemic,” explains Proaño. He adds that, for this reason, “shopping malls emerge from businesses that come together and whose proposal is also the presence of recreational areas, such as green areas and games for children,” says Proaño.
Components of shopping malls Shopping malls are understood as businesses where people spend between 10 to 15 minutes making a purchase, so they must be close to homes or offices. In Ecuador, this commercial model has, on average, between 10 and 15 stores, generally restaurants, pharmacies, banks and pet or veterinary stores.
The latest is due to the increase in families with dogs or cats in Ecuador. According to the latest census, there are 4.1 million households with pets, which is equivalent to 80% of families in the country.
By: PRIMICIAS