Asunción is growing upwards: are we building what people need?

Buildings are sold to buyers and investors. But how they perform in the long run also depends on the people who will live in them: their needs, their incomes and the budget they are willing to spend on housing.

In an article in ABC Color on October 19, 2026, Raúl Constantino, president of the Paraguayan Chamber of Real Estate Developers (CAPADEI), sets out a central challenge: matching the capacity to build with families’ capacity to buy. The article also notes that some of the projects of recent years were aimed at investor buyers, while housing needs remain unmet.

At CALISTA, we believe this reflection should also extend to renting. The fact that an apartment finds a buyer does not, on its own, prove that it will find a tenant at the expected price, or that it will deliver the income its owner expects.

Today’s rents and tomorrow’s supply

In our work, we are seeing increases in the asking rents of some one-bedroom apartments. This is an observation based on the properties and transactions we handle, not a measurement of the whole Asunción market.

At the same time, projects currently under construction will gradually bring new units to the market. The question is how many will be offered for rent, at what prices, and what demand they will find once available.

Both situations can coexist: rents rising in certain segments today, and stronger competition between owners later on. The effect will depend on location, type of home, the number of units delivered and how well they match occupants’ needs. Not every neighbourhood or building will evolve in the same way.

Needing a home does not mean being able to pay any rent

There is a difference between needing a home, being able to pay for a specific apartment and being willing to spend that amount every month.

The minimum wage for miscellaneous unspecified activities was set at Gs 3,044,000 per month from July 2026, according to the Ministry of Labour, Employment and Social Security. That is less than the Gs 4,000,000 in the one-bedroom example presented below. This benchmark helps gauge the gap between certain incomes and the cost of a home. It does not, however, represent the income of all workers or the budget of all households.

There are also individuals and couples with higher incomes who could afford a higher rent but prefer to spend less, save to buy, or put their money towards other priorities. Ability to pay is not automatically willingness to pay.

To assess an investment, it is not enough to identify people who could pay the rent. You need to ask how many would choose that apartment, at that price, compared with the alternatives available.

More amenities: more value for whom?

Swimming pools, gyms, terraces, co-working spaces and event rooms can add comfort and be decisive for some occupants.

But they require cleaning, maintenance, energy, repairs and, eventually, replacement of equipment. The question is whether the use the future resident will make of them, and the value they place on them, justify their cost.

This is not about rejecting shared spaces, but about assessing their usefulness, size and operation within each project. An amenity can help sell an apartment without necessarily producing an equivalent increase in the rent someone will agree to pay.

This gap between commercial appeal and future occupants’ demand also appears in our analysis Branded residences in Asunción: is there a market for this level of luxury?

We believe there is also room for projects that prioritise a good layout, build quality, comfort and contained running costs. A well-designed home should make its occupants’ daily lives easier.

Rent with condominium fees included: how much is left for the owner?

In the transactions we handle, it is common to offer a rent that includes the condominium fees (expensas). Prospective tenants consider a single monthly amount and compare it with other options.

For the owner, that amount has to be broken down: part of it goes to the condominium fees, and the rest is their income before other applicable costs and taxes.

Take an illustrative example, which does not represent a market average: a one-bedroom apartment rents for Gs 4,000,000 per month, condominium fees included.

Item	With fees of Gs 500,000	With fees of Gs 900,000
Monthly rent received	Gs 4,000,000	Gs 4,000,000
Condominium fees paid by the owner	Gs 500,000	Gs 900,000
Balance before other costs and taxes	Gs 3,500,000	Gs 3,100,000

The tenant pays the same in both cases. The owner receives Gs 400,000 less per month, or Gs 4,800,000 per year, assuming twelve months of rent collected and constant fees.

These balances are not yet a net yield: other applicable costs and taxes still need to be considered, as well as possible vacant periods. In our article Buying to rent: from gross rental yield to what you actually keep, we work through this difference with a real case.

The cost of the building does not set the rent the market accepts

An owner can calculate how much they need to charge to reach a certain yield. But that calculation has to be tested against what prospective tenants are willing to pay.

If they find alternatives they consider equivalent for Gs 4,000,000 with fees included, higher condominium fees do not, on their own, make it possible to exceed that budget. If fees rise and the rent cannot be adjusted in the same proportion, the owner’s income falls. If new units arriving on the market also force the owner to negotiate the rent, the pressure may be greater.

The risk is that the building’s costs reflect the concept designed to sell it, while the rent ends up adjusting to the budget of the people who will live there.

That is why condominium fees should be assessed at the time of purchase.

More supply does not necessarily mean a general fall

We do not have enough information to say when an adjustment might occur, or to claim that rents will fall across the board.

New apartments could be absorbed if they find sufficient demand. They could also create more competition in certain locations or property types.

That change does not always show up first in advertised prices. It can appear as longer letting times, negotiations, discounts or improvements the owner agrees to make to secure a tenant.

To track how things evolve, you would need to follow actual deliveries, how long units take to let and the amounts finally agreed. Counting buildings is not enough: what matters is how many apartments reach the market, where they are, how much they cost to run and who they are aimed at.

The relationship between new deliveries and rental demand is also part of our thinking in More foreigners in Paraguay: an opportunity for the market, provided buyers make informed decisions.

What to look at before investing

Before buying to rent, we recommend checking:

• The total rent an occupant would accept, comparing concrete alternatives and distinguishing advertised prices from those actually agreed.
• The expected condominium fees and what they cover, clarifying whether they are a sales estimate or an operating budget.
• Extraordinary expenses and the upkeep of the building, which may require additional outlays.
• Supply that could compete with the unit, both existing and soon to be delivered.
• The result under less favourable scenarios, with lower rent than expected, higher fees or periods without a tenant.

The question should not only be how much the apartment can be rented for, but how much will be left after paying its costs.

Our view at CALISTA

Asunción can welcome buildings with a variety of concepts. But an offer that appeals to investors must also find its place in the lives and budgets of the people who will live there.

An apartment can sell well and still be hard to rent at the price needed to meet its owner’s expectations. Beyond the number of towers or the amenities advertised, the central question is this: will the rents investors expect match what future occupants will be able and willing to pay?

Are you considering buying to rent in Asunción? At CALISTA, we can help you compare properties, analyse their costs and model different scenarios before you decide.

Sources

• ABC Color, October 19, 2026: Viviendas que respondan a la demanda de las familias (in Spanish).
• Ministry of Labour, Employment and Social Security, July 10, 2026: MTESS reglamentó el reajuste de salarios y jornales mínimos (in Spanish).

CALISTA’s observations reflect its professional experience and do not constitute a statistical market index. The example is illustrative. The scenarios described are risks to assess, not forecasts of a general fall in prices or guarantees of returns.