Buying an Apartment in Asunción: Neighborhoods, Prices, and Practical Advice

You’ve spotted an apartment in Asunción on Infocasas. The photos are stunning: rooftop pool, open-plan kitchen, unobstructed views, Carmelitas neighborhood. The price? 95,000 USD for a 65 m² one-bedroom apartment. In Europe, that would be the price of a garage. In Paraguay, it’s a high-end apartment in one of the capital's best neighborhoods. But before you pull out your checkbook, there’s a lot you need to know.

Buying an apartment in Asunción as a French-speaking expat is an exceptional opportunity — provided you know the neighborhoods, understand the real prices, master the buying process, and avoid mistakes that can turn a good investment into a nightmare. This guide covers everything, from scouting to signing with the notary.

Why buy an apartment in Asunción in 2026

Still very affordable prices

Despite steady growth in the real estate market, Asunción remains one of the most affordable capitals in South America. Per-square-meter prices in the best neighborhoods are 5 to 10 times lower than in Paris, 3 to 5 times lower than in Lisbon, and 2 to 3 times lower than in Buenos Aires. For a European investor, this is a window of opportunity that won't last forever.

Attractive rental yields

The rental market in Asunción is dynamic, driven by an expanding middle class, a growing influx of expats, and a supply of quality new housing that is still insufficient compared to demand. Gross rental yields range between 6 and 9% for classic rentals and can exceed 10% for short-term furnished rentals. This is significantly higher than the 2-4% achieved in major European cities.

Negligible property taxation

Annual property tax on an apartment in Asunción rarely exceeds 100 to 200 USD. Rental income from Paraguayan sources is taxed at a maximum of 10% (IRP), and capital gains on resale are taxed at 8-10%. No wealth tax, no housing tax. Compared to the French tax cocktail (property tax + social contributions + income tax + potential IFI), Paraguay is a haven for real estate investors. All tax details are available on our Paraguayan tax residency page.

Neighborhoods: where to buy in Asunción

Villa Morra: the cosmopolitan heart

Asunción's most dynamic neighborhood, Villa Morra is home to restaurants, bars, shopping centers, and embassies. It is the neighborhood with the highest rental demand, especially for expats and business travelers. The downside: square meter prices are the highest in the city.

• Purchase price per m²: 1,500 to 2,200 USD
• One-bedroom (55-70 m²): 85,000 to 150,000 USD
• Gross rental yield: 6 to 8%
• Tenant profile: expats, young professionals, diplomats

Carmelitas: elegance and demand

Carmelitas offers an excellent balance between a lively neighborhood and residential calm. Paseo Carmelitas attracts tenants looking for a pleasant walking environment. Rental demand is strong and stable.

• Purchase price per m²: 1,400 to 2,000 USD
• One-bedroom (55-70 m²): 80,000 to 140,000 USD
• Gross rental yield: 6 to 8%
• Tenant profile: couples, families, established expats

Aviadores del Chaco / WTC: the premium

Asunción's emerging business district attracts investors targeting the high-end segment. New residential towers offer international standard amenities. Prices are the highest in the city, but construction quality is excellent.

• Purchase price per m²: 1,600 to 2,500 USD
• One-bedroom (60-80 m²): 100,000 to 200,000 USD
• Gross rental yield: 5 to 7%
• Tenant profile: international executives, business travelers

Manorá: the emerging good deal

Manorá offers the best value for money for buyers. There are many new constructions, prices are still contained, and the potential for appreciation is significant as the neighborhood develops.

• Purchase price per m²: 1,100 to 1,600 USD
• One-bedroom (55-70 m²): 65,000 to 110,000 USD
• Gross rental yield: 7 to 9%
• Tenant profile: young families, expats on a budget

Luque: betting on the future

The booming city of Luque offers very low prices for a rapidly developing area. The international airport and CONMEBOL headquarters are located there, driving demand upwards. This is the most speculative but potentially most profitable investment over 5-10 years.

• Purchase price per m²: 700 to 1,200 USD
• One-bedroom (55-70 m²): 40,000 to 85,000 USD
• Gross rental yield: 7 to 10%
• Tenant profile: airport staff, CONMEBOL employees, local families

For a complete guide to each neighborhood with atmosphere, prices, and ideal profile, consult our article on Asunción neighborhoods.

New or old: what type of apartment to buy

New apartment (departamento a estrenar)

The new construction market is very active in Asunción. New buildings are erected every year, offering modern amenities: swimming pool, gym, rooftop, 24-hour security, underground parking, coworking spaces. The advantages of new construction:

• No renovation work required
• Recent construction standards (earthquake-resistant, thermal insulation)
• Possibility to buy off-plan at a reduced price (10 to 20% cheaper than the finished product)
• Staggered payment plans during construction (30% down payment, monthly installments, balance on delivery)
• Maximum attractiveness for tenants

Disadvantages: delivery times can be extended (12 to 30 months), and not all developers are equally reliable. Check the developer's track record and visit their previous projects before committing.

Old apartment (departamento usado)

The resale market offers opportunities for buyers on a budget or those looking for a premium location. The advantages of old properties:

• Price per m² often 10 to 30% lower than new builds
• Immediate availability — no construction delays
• Possibility to negotiate more aggressively, especially if the seller is in a hurry
• Locations sometimes unavailable in new builds (well-located buildings in dense neighborhoods)

Disadvantages: possible refreshment or renovation work, sometimes higher condominium fees in older buildings, less modern amenities (no pool, no gym).

Buying off-plan (pozo)

Buying "en pozo" (off-plan, during the construction phase) is a very common practice in Paraguay. The principle: you buy at a reduced price (10 to 20% below the price of the finished product), you pay in installments during construction (12 to 24 months of monthly payments), and you receive your finished apartment upon delivery.

This is an excellent strategy for investors who want to maximize their return: the capital gain is almost automatic between the off-plan purchase price and the market value upon delivery. But there is a risk: delivery delays, developer bankruptcy, finishes inferior to promises. Always check the financial stability and reputation of the developer.

The buying process: from viewing to signing

Step 1: Research and viewings

Main search channels:

• Infocasas.com.py: Paraguay's largest real estate portal — thousands of listings for new and old apartments
• Clasipar.com.py: general classifieds website with an active real estate section
• Local real estate agents: they have access to off-market offers and can negotiate on your behalf
• Developers directly: for off-plan purchases, contact developers building in your target neighborhood

Visit at least 5 to 10 apartments before deciding. Visit at different times of the day to assess noise, light, and traffic. Check the condition of common areas, the quality of security, and the actual amount of condominium fees (expensas).

Step 2: Legal due diligence

As with any property purchase in Paraguay, legal verification is non-negotiable. A specialized lawyer must check:

• The title deed of the apartment and the building
• Absence of charges, mortgages, or disputes
• Compliance of the co-ownership regulations
• Building permits (for new construction)
• Identity and solvency of the seller or developer
• Up-to-date payment of condominium fees and property tax

Our complete guide to real estate investment in Paraguay details all necessary checks and pitfalls to avoid.

Step 3: Negotiation and preliminary agreement

Prices in Paraguay are negotiable, especially for older properties and cash payments. A discount of 5 to 15% is not unusual for a serious cash buyer. The preliminary sales agreement (Boleto de Compraventa) sets the price, terms, and deadlines. A down payment of 10 to 30% is made at this stage.

Step 4: Signing with the notary

The final deed (Escritura Pública) is signed before a public notary. Notary fees represent approximately 2 to 3% of the sale price. The balance of the price is paid at this time. The notary checks the legality of the transaction one last time.

Step 5: Registration at the Registro Público

The deed is registered at the Registro Público de la Propiedad, which formalizes your ownership right. The registration period is a few days to a few weeks. Once registered, you receive your title deed in your name.

Financing: how to pay

Cash payment in dollars

This is the most common method for foreign investors. Transactions are made in US dollars for large amounts. Transfer your funds from your European bank to your Paraguayan bank account via SWIFT transfer or Wise, then pay the seller by certified check or local transfer.

Staggered payment (off-plan purchase)

For off-plan purchases, the classic scheme is:

• 30% upon signing: initial down payment
• 40 to 50% in monthly installments: during the construction period (12 to 24 months)
• 20 to 30% upon delivery: final balance

This payment plan allows the investment to be spread over 2 years without recourse to bank credit. This is the preferred option for expats who do not want to mobilize all their capital at once.

Local mortgage loan

Mortgage loans exist in Paraguay but remain underdeveloped for foreigners. Interest rates are high (8 to 14% per year in Guaraníes, 6 to 10% in dollars) and the granting conditions are strict (local banking history, demonstrable Paraguayan income). In practice, few expats use them — cash or staggered payment is significantly more advantageous.

Rental management: making your investment profitable

Long-term rental

The classic residential lease in Paraguay is 12 to 24 months. Rent is generally paid in Guaraníes for local tenants and in dollars for expats. Condominium fees (expensas) are the responsibility of the tenant in the vast majority of cases. One month's rent is requested as a deposit.

Furnished and short-term rental

The furnished rental market for expats and business travelers is booming. A well-located and well-equipped apartment can rent for 30 to 50% more than an unfurnished rental. Platforms like Airbnb work in Asunción, and yields can exceed 10% gross annually. However, managing an Airbnb requires time or a manager.

Hiring a manager

If you do not live in Asunción permanently, a local rental manager can handle everything: tenant search, inventory, rent collection, repair management, and coordination with the co-ownership. Management fees range between 8 and 12% of the monthly rent — a profitable investment for peace of mind.

For the accounting aspects of your rental investment, our accounting declaration service at €30/month via an approved accountant handles your tax obligations with the DNIT. And if you are not a permanent resident in Asunción, our domiciliation service at €60/month provides you with an official address. All these services are detailed on our ancillary services page.

Costs to expect beyond the purchase price

Item	Estimated Cost
Notary fees	2 to 3% of the price
Registration fees	0.5 to 1% of the price
Lawyer's fees (due diligence)	500 to 1,500 USD
Real estate agent commission (if applicable)	3 to 5% (generally paid by the seller)
Annual property tax	100 to 200 USD
Monthly condominium fees	50 to 200 USD

In total, expect a budget of 4 to 6% of the purchase price for ancillary costs. This is comparable to notary fees in France — except that the base price is 5 to 10 times lower.

Costly mistakes

Buying in the wrong neighborhood

A cheap apartment in a neighborhood without rental demand is worth nothing in terms of yield. Always prioritize location over price per m². A one-bedroom apartment at 1,800 USD/m² in Villa Morra will always rent — a one-bedroom apartment at 800 USD/m² in an outlying neighborhood can remain vacant for months.

Neglecting condominium fees

Expensas (charges) vary enormously from one building to another: from 50 USD in a small building without amenities to 200-300 USD in a high-end residence with a swimming pool, gym, and 24-hour security. These charges directly impact your net return. Check their exact amount before buying.

Trusting the developer without verifying

For off-plan purchases, the developer's solidity is crucial. Ask to see their previous projects, check the delivery times of their past projects, talk to previous buyers. A delivery delay of 6 to 12 months is not uncommon — a developer who never delivers also exists.

Forgetting resale in the equation

Even if you buy to live in or to rent out, always think about resale. An apartment in a appreciating neighborhood, with modern amenities and a good layout, will resell well. An atypical apartment in a stagnant neighborhood will be difficult to resell — and the Paraguayan market is less liquid than the European market.

Conclusion: Asunción, the most accessible real estate market among South American capitals

Buying an apartment in Asunción is a financially intelligent decision for a French-speaking expat in 2026. Prices are accessible, rental yields are high, property taxation is negligible, and the market is in a growth phase — not at the end of a cycle like Lisbon or Panama City.

The key to success: choosing the right neighborhood, performing impeccable due diligence, not overpaying, and structuring your acquisition correctly (ownership in your own name or via an SRL depending on your strategy). With these fundamentals in place, real estate in Asunción is an excellent pillar of your Paraguayan patrimony.

And to structure your investment optimally, remember that Paraguayan tax residency (from €1,400, 3 months) is the essential foundation, and that creating an LLC (€1,500, one week) can be the ideal vehicle for holding and managing your real estate.

Looking to buy an apartment in Asunción? Contact our team for personalized support, from property search to handing over the keys.