Ecuador's IESS Plans Major Real Estate Sales to Boost Liquidity, Including Properties in Coastal Provinces

The Ecuadorian Social Security Institute (IESS) is embarking on a significant initiative to sell real estate holdings across the nation. This move is designed to inject much-needed liquidity into the institution and address its financial sustainability challenges, particularly concerning the vital Pension Fund.

Bernardo Cordovez, president of the IESS Board of Directors, announced on September 10, 2026, that 175 real estate properties have been identified for immediate sale. These properties are primarily located in five key provinces: Guayas, Pichincha, Manabí, Santa Elena, and Azuay. For those of us living on Ecuador's Pacific coast, the inclusion of Guayas, Manabí, and Santa Elena is particularly relevant, as these provinces encompass popular expat destinations like Manta, Salinas, Montañita, and Bahía de Caráquez.

President Daniel Noboa has indicated that the IESS could secure an estimated USD 2,000 million in liquidity from these asset sales. The IESS clarifies that this is not a reduction of its patrimony but rather a "transformation of fixed assets to current assets," which will then be available for further investments in the Health Fund and to enhance the sustainability of the Pension Fund.

The Sales Process: What to Expect

The procedure for selling these Social Security assets is governed by the Regulation for the Alienation of Non-Institutional Use Real Estate Owned by the IESS, a framework established in May 2023 with Resolution 657. A crucial point is that only properties not currently used for IESS administrative or service activities (such as medical care facilities) are eligible for sale.

To kickstart the process, the General Director of the IESS must first present an Annual Plan for the Alienation of Non-Institutional Use Real Estate to the Board of Directors for approval. Once approved, the sale of these properties will proceed via public auction.

According to a reform in July 2026, the Provincial Directorates of the IESS are responsible for conducting the appraisal of the properties. These valuations must be carried out by an expert authorized by the Superintendency of Banks. The base price for the sale will be the appraisal value, which cannot be lower than the value set by the respective municipal governments. For the auction, appraisals conducted within the last two calendar years will be considered, meaning for a 2026 auction, valuations from 2024 and 2025 would be valid.

The auction process itself involves sealed bids and ascending offers. Transparency is a key requirement, with announcements to be made on the IESS website and through national media at least 15 days before the auction date, aiming to ensure equal opportunities for all interested parties. Successful bidders will be required to pay the offered amount in cash within a maximum period of three months from the date they are notified of the award.

It's worth noting that the IESS's property registry, as of March 19, 2026, lists 1,387 properties across all 24 provinces. However, an internal report indicates that many of these properties have been devalued over the past two decades due to a lack of updated appraisals since the registry's creation in 2006. The IESS had planned to contract a consultancy for property valuation, with a budget of USD 1.8 million, but this process was canceled by Sercop on July 20, 2026, due to the IESS's failure to answer all questions.

What This Means for Expats

For expats living on the coast or considering a move to areas like Manta, Salinas, or Bahía de Caráquez, this IESS initiative could present potential real estate opportunities. The sale of 175 properties, particularly in provinces with a significant expat presence, might introduce new inventory into the market. While the specifics of individual properties (e.g., type, location within provinces) are not yet public, the process of public auction suggests a transparent mechanism for acquisition.

If you are in the market for property, keeping an eye on the IESS website and national media for auction announcements could be beneficial. Understanding the auction process, including appraisal values and payment terms, will be crucial. It's always advisable to engage with local real estate professionals and legal counsel if you consider participating in such auctions, especially given the complexities of property ownership and transfer in Ecuador. This could be a unique chance to acquire property, but due diligence on the legal status and condition of any potential purchase remains paramount.

Sources: primicias.ec.

Image: existing site image, illustrative.