Asunción Among the Most Affordable Capitals for Investment

Asunción is solidifying its position as one of the most affordable Latin American capitals for real estate investment, according to data from the Latin American Real Estate Survey (RIAL), compiled by the Center for Financial Research at Torcuato Di Tella University in partnership with ZONAPROP. Although Asunción is not part of the survey’s official panel of 12 cities, an estimate based on the same methodology placed its average price per square meter at USD 1,697.

This figure would rank Asunción tenth in the regional comparison, below Panama City (USD 1,804/m²) and above Córdoba (USD 1,628/m²). The calculation was based on local real estate listings from March, adjusted for the average exchange rate during the period, and considered only apartments between 20 and 100 square meters located in areas comparable to upper-middle-class neighborhoods.

The study offers insights into market trends across cities such as Montevideo, which tops the ranking with USD 3,330/m², followed by Mexico City, Monterrey, and Buenos Aires, where prices exceed USD 2,500/m². In this context, Asunción is up to 39% cheaper than the average of the most expensive cities, highlighting significant potential for future value appreciation.

Several factors contribute to this relative affordability, including low urban land costs, exchange rate stability, and the growing professionalization of Paraguay’s real estate market. This combination makes Asunción particularly attractive to foreign investors seeking rental income or portfolio diversification, especially in a region where secure, long-term opportunities are increasingly sought after.

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However, homeownership remains a challenge for many Paraguayan families. Despite moderate prices, the gap between income levels and market values continues to hinder first-time homebuyers. In this regard, government programs play a key role.

In 2025, the Ministry of Urban Planning, Housing and Habitat (MUVH) launched Che Róga Porã 2.0, an expanded version of its housing initiative. The program includes options such as building on owned land, purchasing land with a home, acquiring completed housing, and home expansion. Loans are available for up to 180 times the legal minimum wage, with fixed annual interest rates of 6.5% and repayment terms of up to 30 years, thus improving access to formal financing for Paraguay’s emerging middle class.

El artículo en español aquí.