Is it worth buying a property in Paraguay?

This is the Sovereign Doc. I'm Lucca Soares and in this video I answer with data - without guesswork - whether or not it's worth investing in real estate in Paraguay.

A country in transformation

Many years ago, Paraguay was seen as a country of counterfeiters and low-quality products. Today, companies such as Lupo, Estrela and well-known automakers manufacture in the country and export to the world.

Paraguay is changing, and the figures bear this out.

Paraguay's growth

The country has grown by an average of 3% per year since 2014, This is much higher than Brazil's 0.8% in the same period. Projections remain positive: GDP will rise between 5% and 6% in 2025, and the Central Bank of Paraguay projects a rise of 4.2% for 2026.

This development, in addition to more advantageous fiscal reality than Brazil's, has attracted immigrants. By 2025, more than 40,000 people have applied for residency in the country, This is an increase of 50% on the previous year. More than 55% of this total came from Brazilians, followed by Argentinians (11%) and Germans (4%).

The real estate market

Since 2015, the Paraguayan real estate sector has expanded by 31%. In Asunción, the average price has grown by 5.9% per year in dollars since 2020, reaching an average of US$ 1,450 to US$ 1,500 per square meter, still below cities like Rio de Janeiro and São Paulo, where the average is around US$ 2,000.

The vacation rental model (Airbnb and the like) is still little explored, despite the post-pandemic growth in tourism - which represents an unpriced opportunity.

The government offers financing of between 6.5% and 7.5% a year for families with incomes of up to US$ 2,500 a month. With debt/GDP at only 47.6% - compared to over 78% in Brazil and Argentina - there is fiscal space for these programs to continue.

The real problems

The Soberano team was in Asunción and witnessed frequent power outages, crowded 1970s buses running around the capital and cartels with a strong influence over parts of the public infrastructure.

A violence on the border with Brazil is a real problem, This is driven by Brazilian criminal organizations. Outside of the border regions, the homicide rate per 100,000 inhabitants is four times lower than in Brazil - and the feeling of security in everyday life in the capital is noticeably different.

After all, is it worth buying a property in Paraguay?

It depends on what you're looking for. The country is still lagging behind in infrastructure and corruption levels are high - but both can be seen as opportunities if you believe in the country's trajectory.

The rate of real estate appreciation is lower than in other capitals, but there is real demand: Paraguay has a housing deficit of 1 million and government incentives are growing.

To live, there are better destinations in Latin America. For investing with a medium and long-term horizon, prices are still low enough for the risk to make sense.

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