Published on and written by Cyril Jarnias
Asunción stands out in 2026 as one of the most atypical real estate markets in the region. Prices remain low compared to other South American capitals, even as rents and yields have risen sharply since Covid. The result: rental yield in Paraguay, especially in Asunción, now attracts regional investors, expats, and yield seekers who elsewhere have to settle for 3% to 5% gross.
Yield depends on the neighborhood, property type, and rental model (traditional or short-term). Based on data from Numbeo, Expatistan, real estate portals, and short-term rental platforms, we get an accurate picture of the market.
A Market in Flux but Still Undervalued
Asunción’s real estate market enters 2026 with profound transformations consolidating into a genuine structural shift. After several years of price declines or stagnation post‑Covid, values are rising again, but from a still modest level compared to major regional metropolises.
The average price of apartments in Paraguay is around $1,624 per m² in June 2026, with an average residential price close to $1,237/m². In Asunción, most sources converge on a general range of $1,000 to $2,000/m², with a median residential price of about $1,673/m² and an average price of $1,678/m² in mid‑2026. In the good neighborhoods, prices are more in the $1,500–2,000/m² range, or even higher in the most upscale areas.
The average price per square meter in the upscale residential neighborhood of Manorá is around $2,107.
This price base, still lower than São Paulo, Buenos Aires, Santiago, or Bogotá for equivalent properties, partly explains the high yields seen in Asunción. The market is gradually moving away from its “cheap emerging” status and starting to align with major regional capitals, but the catch‑up is clearly not over.
Buy or Rent: Ratios Favorable to Investors
To gauge the appeal of rental investment, analysts closely track the Price‑to‑Rent Ratio, which compares purchase price to annual rent. The lower this ratio, the more attractive buying is for an investor or long‑term occupant.
In Asunción, the 2026 indicators are remarkably low for a capital city:
| Indicator (Asunción) | Approx. 2026 Value |
|---|---|
| Overall Price to Rent Ratio | 11.04 |
| Price to Rent Ratio City Center | 14.01 |
| Price to Rent Ratio Downtown | 14.42 |
| Price to Rent Ratio Outside Center (version 1) | 16.69 |
| Price to Rent Ratio Outside Center (version 2) | 12.60 |
| Price/Income Ratio (affordability) | 12.17× |
With a median purchase price of around $132,000 and rents starting at about $983 per month, calculations show it is financially better to buy than to rent from a three‑year horizon of residency or investment — which is rare in a large city.
For an investor, a Price-to-Rent Ratio around 11-14 means that theoretically, it takes about 11 to 14 years of rent to repay the purchase price, which corresponds to a gross yield of around 7-9%. This estimate is consistent with consolidated data: the average gross rental yield for apartments in Paraguay is 8.3% per year, which equates to about 12 years of rent to amortize the investment.
How Much Does an Apartment Cost in Asunción in 2026?
The entry ticket for a purchase remains surprisingly affordable for a capital city. Data gathered on the Asunción market gives the following orders of magnitude:
| Property Type (Asunción) | Typical Purchase Price 2026 |
|---|---|
| Studio | $45,000–$75,000 |
| 1‑bedroom apartment | $60,000–$110,000 |
| 2‑bedroom apartment | $90,000–$180,000 |
| Premium segment (entry) | From $200,000 |
| Median property price | $130,000–$137,000 |
| Median 2‑bedroom price | ~$138,000 |
| Median asking price (all properties) | ~$132,000 |
| Median asking price apartments | ~$110,000 |
| Median asking price houses | ~$245,000 |
| Median asking price land | ~$230,000 |
This price structure shows that an investor can enter the Asunción market with $60,000 to $80,000 for a small 1‑bedroom, or $90,000 to $140,000 for a two‑room or two‑bedroom in an intermediate neighborhood. In Villa Morra or Carmelitas, tickets for higher‑quality products start higher, generally between $100,000 and $150,000 for small units, and climb beyond $200,000 in the premium segment.
Rent Levels: From Budget to Executive Furnished
On the rent side, Asunción remains affordable for tenants, while offering comfortable income for owners. Available figures for 2026 converge around the following ranges:
| Long‑term Rental Type | Typical Monthly Rent Asunción 2026 |
|---|---|
| Studio | $250–$400 |
| 1‑bedroom standard | $350–$650 |
| 2‑bedroom | $500–$900 |
| 1‑bedroom city center (average) | ~$418–$450 |
| 1‑bedroom outside center (average) | ~$255–$300 |
| 3‑bedroom city center | ~$700–$1,350 |
| 3‑bedroom outside center | ~$450–$815 |
| 1‑bedroom furnished (premium neighborhoods) | $500–$900 depending on area |
Data in guaraní confirm these orders of magnitude. For example, a 1‑bedroom in the city center rents for around 3.25 to 3.45 million guaraníes (about $418–$425), while on the outskirts, a 1‑bedroom is around 2.0 to 2.66 million guaraníes (about $255–$300).
In areas like Villa Morra, Las Lomas, or Manorá, small furnished units for executives or expats often exceed $600 per month, sometimes reaching $800 for new or well‑located properties.
Gross Yields: 6% to 10% Over the Long Term
Aggregating the sources, the consensus is clear: gross rental yields in Asunción in 2026 are in a range of 6% to 10% per year for apartments, with pockets reaching or even exceeding 10–12%.
For the market as a whole, several indicators converge:
Overall gross yield ranges by property type and rental mode
Typical gross yield of 6% to 8%, with an average quoted of 8.3%
Gross yield of 7% to 10%, with an overall gross yield of 5% to 8% depending on property type
In practice, yields vary significantly from one neighborhood to another. A zone‑by‑zone overview helps to better understand where the opportunities lie.
Zone Analysis: Where to Invest in Asunción in 2026?
Market studies segment Asunción into several investment zones, each with its price, rent, and yield profile. Here is a summary of the main corridors and neighborhoods studied.
Zone 1: Surubi’í / Aviadores del Chaco Corridor
The Aviadores del Chaco corridor, extended toward Surubi’í, is described as the most dynamic area in the 2024‑2026 period. It features iconic office towers (Torre Ayfra, Torre Avenida), shopping centers (Paseo La Galería), and international hotels (Wyndham, Sheraton). Rental demand comes from a mix of multinational executives, expats, and high‑income digital nomads.
The figures for 2026 are as follows:
| Indicator – Zone 1 (Aviadores / Surubi’í) | Estimated 2026 Value |
|---|---|
| Average price per m² | $1,800–$2,400 |
| Rent 1‑bedroom furnished | $650–$900/month |
| Annual gross yield | 6–8% |
| Annual appreciation 2023–2026 | +15–20% |
This zone offers a very rare duo: strong capital appreciation (up to 20% per year over the 2023‑2026 period) and still decent rental yield (6–8% gross). The main risk lies in the number of new projects: more than 8 towers under construction or in pre‑sale as of Q1 2026. In case of oversupply, rental tension could ease temporarily, but the depth of corporate and expat demand limits this risk in the medium term.
Zone 2: Villa Morra
Villa Morra is the emblematic neighborhood of Asunción’s upscaling: modern residences, restaurants, shops, office and service offerings. Prices are among the highest in the capital, but rental demand is very solid with vacancy below 5%.
| Indicator – Zone 2 (Villa Morra) | Estimated 2026 Value |
|---|---|
| Average price per m² | $2,000–$2,800 |
| Rent 1‑bedroom furnished | $600–$800/month |
| Annual gross yield | 5–6% (long term) |
| Gross yield (other data) | 5–7% |
| Estimated net yield | 4–5.5% |
| Annual appreciation 2023–2026 | +10–12% |
| Typical entry capex | $110,000–$150,000 |
From a strict yield standpoint, Villa Morra is not the most explosive area, but it combines:
– very low vacancy,
– high and stable rents,
– strong double‑digit valuation,
– a “core” positioning in the portfolio.
For a cautious investor seeking an easily resalable asset with stable rental income, a furnished studio or two‑room in Villa Morra is a relevant choice. Although the gross yield is around 5% to 7%, this option offers security and liquidity.
Zone 3: Carmelitas
Carmelitas, often associated with Las Lomas, is another high‑end hub, with a mix of residential, retail, and nightlife. It shows a profile quite similar to Villa Morra, slightly cheaper, with somewhat higher yields.
| Indicator – Zone 3 (Carmelitas) | Estimated 2026 Value |
|---|---|
| Average price per m² | $1,900–$2,600 |
| Rent 1‑bedroom furnished | $550–$750/month |
| Annual gross yield | 5–6% (long term) |
| Gross yield (other data) | 6–8% |
| Estimated net yield | 5–6.5% |
| Annual appreciation 2023–2026 | +8–10% |
| Typical entry capex | $100,000–$140,000 |
For an investor, Carmelitas offers an interesting compromise between entry price, tenant quality, and yield. In some sub‑neighborhoods like Las Lomas, short‑term rental is particularly performant thanks to strong demand from digital nomads and expats.
Zone 4: Mburicaó / Manorá
Mburicaó and Manorá are undergoing urban redevelopment. Prices are lower than in traditional premium areas, but the momentum is very strong, especially in Manorá where prices already exceed $2,100/m² on average.
| Indicator – Zone 4 (Mburicaó / Manorá) | Estimated 2026 Value |
|---|---|
| Average price per m² | $1,200–$1,800 |
| Rent 1‑bedroom furnished | $500–$700/month |
| Annual gross yield | 7–9% |
| Annual appreciation 2023–2026 | +12–18% |
| Typical entry capex | $65,000–$100,000 |
In this zone, yields approach the upper bound of Asunción, while offering spectacular capital appreciation. For a small investor targeting $70,000 to $90,000, a furnished 1‑bedroom in Mburicaó or Manorá can generate around 8–9% gross, with potential double‑digit capital gains over a few years.
Zone 5: Las Mercedes
Las Mercedes is described as a residential/mixed zone with good centrality, but already more expensive than some redevelopment areas, with more compressed yields.
| Indicator – Zone 5 (Las Mercedes) | Estimated 2026 Value |
|---|---|
| Average price per m² | $1,600–$2,200 |
| Rent 1‑bedroom furnished | $500–$650/month |
| Annual gross yield | 4–5% |
| Annual appreciation 2023–2026 | +6–8% |
| Typical entry capex | $80,000–$120,000 |
Periphery: Lambaré, Luque, and Emerging Zones
In the immediate periphery of the capital, some municipalities like Lambaré or Luque offer even more generous yields, at the cost of a less central location.
| Peripheral Zone | Gross Yield | Estimated Net Yield |
|---|---|---|
| Lambaré | 8–10% | 6.5–8% |
| Luque | 8–10% | 6.5–8% |
Prices per square meter in these sectors often range between $500 and $1,100/m², with projected appreciation of 10% to 15% per year for the best pockets. For budget‑limited investors looking to maximize the yield/appreciation combination, 1–2 bedroom units with decent finishes in these municipalities can offer net yields of 6–8% after expenses, well above most regional capitals.
Short‑Term Rental: A Turbocharger for Yields
One of the major post‑Covid changes in Asunción is the rise of short‑term rentals, driven by the growth of digital nomadism, tax expats, and long‑stay business travelers. The city now ranks in the top 3% in South America for short‑term rental yield.
Aggregated data from several thousand listings gives the following profile for 2026:
| Short‑Term Rental Indicator Asunción | Approx. 2026 Value |
|---|---|
| Average nightly rate | $45–$60 (median ~$52) |
| Average occupancy rate | 55–70% |
| Average monthly revenue per unit | $600–$900 (median ~$700–$800) |
| Median monthly revenue (example) | ~$702–$814 |
| Median annual revenue (representative case) | ~$12,000 |
| Regional ranking | Top 3% for STR yield |
In some neighborhoods, the figures are even more striking. For example, Las Lomas (Carmelitas) records an average nightly rate around $60–$62, an occupancy rate above 50%, and an average monthly revenue flirting with $900, translating into double‑digit gross yields on purchase price.
Overall, studies estimate:
– gross short‑term yield: 10–12% citywide in 2025–2026,
– 2026 projection for the Airbnb segment: 11–15% gross depending on the neighborhood,
– net yield after management fees and expenses: 8–11% for well‑run projects.
A well‑positioned owner of a studio or 1‑bedroom in a strategic neighborhood (Villa Morra, Carmelitas, Recoleta, Corporate axis) can thus hope for income of $600 to $900 per month from a base price of about $70,000–$120,000, yielding returns higher than traditional long‑term rentals.
Taxation and Monetary Stability: Decisive Advantages for Investors
Beyond the raw numbers, the net profitability of an investment depends heavily on the tax and monetary framework. On this front, Paraguay scores points over its neighbors.
The country applies a territorial tax system: only Paraguay‑source income is taxable. For a real estate investor, this means rents collected in Asunción are taxed locally, but without being stacked on top of foreign income (subject to the structuring of their tax residency).
For individuals, the main lines are as follows:
Capital income is generally taxed at a flat rate of around 8%.
All of this takes place in a relatively stable monetary environment: the guaraní is holding up well against the dollar, with limited volatility. For a hard‑currency investor, currency risk therefore appears low, especially compared to Argentina or Brazil.
This combination — high gross yields, moderate tax burdens, no wealth tax, property rights open to foreigners, and relative currency stability — makes Paraguay, and Asunción in particular, one of the best risk/reward equations in South America in 2026.
Paraguay, Asunción
Worked Example: What Does a 1‑Bedroom in Asunción Really Return?
To get a concrete idea, let’s imagine an investor who buys a furnished 1‑bedroom in a dynamic intermediate neighborhood, for example Mburicaó or a sector near the corporate axis, with the following parameters:
– purchase price: $80,000 (about $1,400–$1,600/m² for 50–55 m²),
– long‑term furnished rent: $550 / month ($6,600/year).
The annual gross yield is then:
– $6,600 / $80,000 ≈ 8.25% gross.
Annual net yield after expenses and taxes, excluding capital appreciation estimated at 12% to 18% per year over 2023-2026.
On a short‑term model, if the same apartment is operated via platforms with:
– average nightly rate: $50,
– occupancy rate: 60%,
– average monthly revenue: $900 ($10,800/year),
the gross yield then moves into the 13–14% zone before expenses. After professional management, turnover, cleaning, and taxes, many field analyses place the net yield between 8% and 11%, provided a good occupancy rate and high service level are maintained.
In both cases, even with conservative assumptions, a well‑located 1‑bedroom in Asunción in 2026 easily exceeds 5% net, remaining very competitive compared to bonds or saturated Western real estate markets.
Rent Growth and Capital Appreciation: The Dual Engine
The profitability of a real estate investment in Asunción does not rely solely on rental income. For several years, two trends have been converging:
– rents are rising rapidly,
– prices per m² are rising again after a period of compression.
Data indicate that rents increased by 6–8% in 2023, then by 10–12% in 2025, with similar dynamics expected for 2026. The explosion in rental demand — fueled by urbanization, the arrival of expats, digital nomads, and PGY residents — is colliding with a still limited supply of modern housing, despite a construction boom.
These years define the period for which annual capital appreciation estimates are provided.
– 6–8% in more mature or already valued neighborhoods,
– 8–10% in intermediate sectors,
– 10–12% in well‑established premium zones,
– 12–18%, or even 15–20% on the hottest corridors like Aviadores del Chaco.
Many analysts put forward an overall range of 7–9% annual price growth in Asunción, with more optimistic scenarios reaching 8–20% per year depending on the neighborhood and project typology.
Combining these two engines — rental yield (6–10% gross) and capital appreciation (7–15% in many areas) — the total potential returns over several years become hard to find in other South American capitals, at equivalent risk.
A More Selective and Professional Market
The flip side of this attractive coin is that the market is professionalizing rapidly. Buyers in 2026 are no longer willing to pay “any price for any product”. Projects that are poorly designed, poorly integrated into the urban fabric, or offering only “decorative” amenities now struggle to sell during pre‑commercialization.
The trend is toward specialization:
New real estate projects target specific audiences (young professionals, seniors, families, digital nomads) and integrate a mix of residential, retail, and office uses. The focus is on truly usable services such as coworking, functional gyms, and well‑designed common areas.
This increasing selectivity further widens the gap between:
– experienced, well‑funded developers with professional teams,
– opportunistic players without solid structure.
For the investor, this means it is no longer enough to buy “in Asunción” to succeed. Choosing the micro‑location, condominium quality, finish standard, and rental management plan becomes central to securing high yield and liquidity upon resale.
Risk Profile: What to Watch for in 2026?
Even if the risk/reward ratio is very favorable, rental investment in Asunción in 2026 is not without risks. Among the main points of attention:
The market presents a risk of localized oversupply on certain corridors like Aviadores del Chaco, remains immature with extended resale times, and depends heavily on management quality for short‑term rental yields. It requires rigorous tax tracking (RUC, declarations, reduced VAT) and faces heterogeneity in construction quality and developer reliability.
However, compared to markets like Buenos Aires, Santiago, or Bogotá, where yields have compressed to a range of 3% to 6% and macroeconomic uncertainties are greater, Asunción appears in 2026 as a very attractive compromise for an investor seeking both yield, relative monetary stability, and predictable taxation.
Conclusion: How Much Does an Apartment in Asunción Really Return in 2026?
In summary, the data available for 2026 allows us to draw a fairly clear framework:
Realistic net yields for a serious investor in short‑term rental are around 8% to 11% after expenses, management, and taxes.
To the question “how much does an apartment in Asunción return in 2026?” the answer, of course, depends on location, property type, and rental strategy. But everything indicates that a disciplined investor, focused on small to medium‑sized furnished apartments in good neighborhoods, can combine:
– a net rental yield higher than most developed markets,
– significant potential capital gains,
– a relatively predictable tax and monetary environment.
In a global context where real estate yields have often collapsed, Asunción and, more broadly, Paraguay stand out as an exception: a still affordable market, but already mature enough to offer solid figures and credible growth prospects for the decade ahead.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
