More foreigners in Paraguay: an opportunity for the market, provided buyers make informed decisions

By Hélène Montourcy — CALISTA Inmobiliaria

Paraguay is attracting more foreigners. For the real estate market, this trend represents an opportunity. But it also raises two questions: how can access to housing be preserved for local residents, and how can new investors avoid overpaying based on uncertain returns?

According to Emmanuel Castel, president and founder of Paraguay Resident, quoted by MarketData, the number of foreigners arriving in Paraguay to apply for residency has more than doubled since 2023. He also expects the 2026 figure to exceed the level recorded the previous year.

Brazilians and Argentinians remain among the largest groups, while the range of newcomers is becoming more diverse: Europeans, North Americans, Asians and people from the Middle East, including families, retirees, entrepreneurs and remote workers.

Applying for residency does not necessarily mean settling permanently or purchasing property. In our day-to-day work, however, we see these arrivals creating housing needs and contributing to changes in the market.

Different motivations, sometimes rushed decisions

Among the clients we assist, motivations vary.

For some Argentinian and Brazilian buyers, Paraguay’s tax system and the search for stability play an important role, particularly in comparison with their home countries.

Among some Europeans, we see a stronger desire for a change of lifestyle, sometimes linked to their perception of Europe’s political and social climate. The decision to leave can then be made quickly, with a sense of urgency.

That urgency is understandable. But it can lead people to buy before they have sufficiently researched neighbourhoods, prices, rents and resale conditions.

A rising market, with housing becoming less accessible

In some neighbourhoods, we see pressure on prices making it harder for many Paraguayans to access housing, whether buying or renting.

The arrival of foreign investors can contribute to this pressure, although it is not the only cause. The types of homes being built, their prices and how well they match local incomes also matter.

The question deserves to be asked: are homes being built to meet residents’ needs, or mainly as investment products aimed at buyers with greater purchasing power?

Paraguay’s appeal is good news. It should also benefit those who already live here.

The trap: buying without understanding the local market

We see foreign buyers signing contracts without enough comparable properties to guide their decisions. Some accept prices that, in our assessment, are not justified by the location, the property’s features or its achievable rental income.

Their investment plans often rely on short-term furnished rentals, supported by attractive revenue projections.

But a nightly rate is not an investment return. Occupancy rates, platform commissions, management fees, cleaning, electricity, condominium fees, maintenance and furniture replacement must all be taken into account.

An apartment can generate bookings without delivering the expected net income.

Short-term rentals: today’s completions could weigh on tomorrow’s returns

In our day-to-day work, we see many foreign investors buying properties for use as short-term furnished rentals. Some of these purchases were made off-plan around two years ago: the buildings are now nearing completion, and the apartments will gradually enter the rental market.

This time lag is what concerns us. Yesterday’s investment decisions are feeding today’s supply, while there is no guarantee that demand will grow at the same pace.

Rates are already showing signs of pressure. According to public AirDNA data consulted in October 2026, the average nightly rate for short-term rentals in Asunción is approximately US$42, down 20.9% year on year. This average covers different categories of accommodation on Airbnb, Vrbo and Booking.com; it does not necessarily reflect the final price paid by the guest.

These figures alone do not establish that newly completed properties caused the decline. They do, however, show why it would be unwise to assume that current rates will hold in the years ahead.

In our experience, business travel is a key driver of short-term rental demand in Asunción. We do not believe it is prudent to rely on mass leisure tourism to absorb the new apartments.

If newly completed properties increase supply faster than demand grows, owners will have to compete for the same guests. We would then expect greater pressure on rates, with a risk of a significant decline in rental income.

For those who paid high prices based on optimistic projections, this trend could undermine their expected returns.

Our advice: use long-term renting as a baseline scenario

Before buying a property to rent by the night, check that it also makes financial sense as a long-term rental.

This means choosing:

• a home suited to actual local demand;
• a location that is convenient for everyday life, close to jobs, services and shops;
• a purchase price consistent with the rents actually achieved by comparable properties;
• running costs that are compatible with the expected rental income;
• a property likely to appeal to Paraguayan tenants and buyers as well.

Long-term renting also carries risks, particularly vacancy and unpaid rent. It does, however, allow investors to build a plan that depends less on a constant flow of new bookings.

A property that can perform under several scenarios gives its owner more options if the market changes.

Buy methodically, rather than in a rush

The arrival of foreigners creates demand, investment and new business activity. This is an opportunity for Paraguay, provided the country’s appeal is not confused with an automatic return on every property purchase.

Our view is simple: a sustainable investment must be grounded in neighbourhood realities, occupants’ needs and a prudent calculation of income and expenses.

Thinking of investing in Asunción? CALISTA helps you compare properties, assess their prices and develop an investment plan suited to your goals.

Source for the introduction: MarketData, “Más extranjeros eligen Paraguay para residir y su llegada empieza a mover el mercado inmobiliario”, published on 7 October 2026. The market observations and outlook presented in this article reflect CALISTA Inmobiliaria’s analysis.