Published on and written by Cyril Jarnias
Asunción is changing dimension. For a long time on the sidelines of major regional capital flows, the Paraguayan capital has become in a few years a full-fledged real estate market, with its premium neighborhoods, areas undergoing redevelopment, and new growth hubs along major roadways and recent bridges. In 2026, investing in Asunción is no longer just about buying “cheap” and betting on the future: it means having to choose your sector very precisely based on the strategy you are looking for, between rental yield, capital appreciation, or a balance of both.
Some neighborhoods concentrate demand, have high occupancy rates, and benefit from major infrastructure (roads, shopping centers, bridges, multinational offices), which pushes prices up and secures the market. On the other hand, peripheral areas offer lower entry points and greater appreciation potential, but with slightly higher risk.
This article provides an overview of the best sectors in Asunción for a profitable real estate purchase in 2026, with supporting figures and perspectives. Goal: to help you align your budget, risk tolerance, and investment horizon with the right neighborhood.
A market reaching maturity, but still undervalued
The overall context clearly favors a real estate purchase in Asunción in 2026. On the macroeconomic front, Paraguay is posting GDP growth of around 4 to 5% per year, controlled inflation close to 4%, moderate public debt (about 35–40% of GDP), and, most importantly, a relatively stable currency against the dollar. This stability is a key factor: it reduces currency risk for investors who think in USD.
The median price per square meter for residential property in Asunción in 2026 is around 1,600 to 1,700 USD, which remains cheap compared to neighboring regional capitals.
The price structure is as follows:
| Segment | Indicative price range (USD/m²) | Example product |
|---|---|---|
| Budget – older | 700 – 1,000 | Apartment in older building on the periphery |
| Budget – new | 900 – 1,300 | Small recent residence, few amenities |
| Mid-range | 1,300 – 1,800 | Building with security, parking, some services |
| Modern business-class | 1,800 – 2,400 | Recent tower, pool, gym, common areas |
| Luxury | 2,500 – 3,500 | Premium projects in Villa Morra, Recoleta, Las Lomas |
In parallel, gross rental yields in Asunción remain attractive: most sources place the general range between 6 and 10% per year, with peaks above 10% in certain segments or specific neighborhoods, particularly for well-located small units operated as furnished rentals.
Price prospects for the medium term are also favorable. Forecasts point to an annual increase of 4 to 6% in the average price of apartments for 2025–2026, in a context of rising construction costs (more expensive land, materials, labor) and professionalization of the sector. Over five years, premium neighborhoods should see increases on the order of 4 to 6% per year, while some emerging areas could go well beyond that.
Within this framework, several drivers fuel demand:
– internal migration to the capital and densification of the metropolitan area (2.5 to 2.7 million inhabitants around a city of 550–600,000 inhabitants)
– arrival of regional investors, especially Argentinians seeking to hedge against currency risk
– establishment of multinationals and expansion of the services sector, boosting corporate rental demand
– rise of remote work and digital nomadism, with an international clientele seeking quality furnished apartments.
For an investor, this translates into a market that still combines low prices by international comparison, a real growth dynamic, and a favorable fiscal and monetary environment (no capital gains tax for individuals, approximately 15% withholding tax on gross rents for non-residents).
In this context, where exactly should you invest in Asunción in 2026?
The Surubi’í / Aviadores del Chaco corridor: the investment locomotive
The Surubi’í / Aviadores del Chaco corridor clearly stands out as the most dynamic area over the 2024–2026 period. It is the heart of what many call the “corporate” axis, where office towers, major shopping centers, and international hotels are concentrated.
This sector features iconic buildings (Torre Ayfra, Torre Avenida, Torre Alianza), high-traffic malls like Paseo La Galería, and global hotel brands (Wyndham, Sheraton). There is also a growing supply of modern residences targeting multinational executives, long-stay expatriates, and high-end digital nomads.
Prices, rents, and yields in the Aviadores corridor
Projections for 2026 provide clear benchmarks:
| Key indicator (2026) | Estimated value |
|---|---|
| Average residential price (USD/m²) | 1,800 – 2,400 |
| Monthly rent furnished 1-bedroom | 650 – 900 USD |
| Gross rental yield | 6 – 8% / year |
| Annual appreciation 2023–2026 | 15 – 20% |
| Typical entry ticket | 90,000 – 120,000 USD |
This corridor combines two qualities rarely found together: solid rental yields and rapid capital appreciation. Between 2023 and 2026, estimated annual appreciation is between 15 and 20%, driven by the agglomeration effect of offices, hotels, shops, and associated residential demand.
Corporate leases often last 6 to 12 months with a vacancy rate below 5% on some stretches. For the investor, this guarantees predictable cash flow, especially if the property is well-furnished and professionally managed.
The flip side is the volume of supply: more than eight towers were under construction or in pre-sale at the beginning of 2026. The main risk is not a structural decline in demand, but a temporary adjustment in rents if supply temporarily exceeds the market’s absorption capacity. In this scenario, the best-positioned properties (view, finishes, services, management) would still retain a competitive advantage.
Suitable investor profile
The Surubi’í / Aviadores del Chaco corridor is particularly suitable for the investor who wants:
To optimize the investment, it is recommended to align a high gross yield with strong capital appreciation potential, target a high-end corporate and expatriate clientele, and accept a substantial entry ticket but still lower than that of major metropolises like São Paulo or Buenos Aires.
In practice, a one-bedroom apartment of around 60–70 m², well-furnished, in a recent tower on this axis, can generate a monthly rent close to 800–900 USD with a yield of 7–8%, while benefiting from the upward trend in price per square meter.
Villa Morra is the established premium neighborhood of Asunción, a mix of high-end residential area and commercial and leisure hub with restaurants, cafes, boutiques, private clinics, and law or consulting firms. It is also one of the most sought-after sectors to live in: many foreigners choose to reside there to be close to services, shopping centers (Shopping del Sol, Paseo La Galería), and transport axes.
Price structure and yield
In 2026, Villa Morra positions itself at the top of the price hierarchy:
| Key indicator (2026) | Estimated value |
|---|---|
| Average residential price (USD/m²) | 2,000 – 2,800 |
| Monthly rent furnished 1-bedroom | 600 – 800 USD |
| Gross rental yield | 5 – 6% / year (8.2% in some Airbnb calculations) |
| Annual appreciation 2023–2026 | 10 – 12% |
| Typical entry ticket | 110,000 – 150,000 USD |
| Observed luxury segment | up to 3,500 USD/m² |
The gross rental yield appears slightly lower than in more “value-add” areas, because the price per square meter is already high. However, short-term rental performance data shows that a portfolio of apartments in Villa Morra practically achieves a gross profitability around 8% in some cases, with monthly furnished rents on the order of 600–800 USD for one-bedroom units.
The main asset of Villa Morra is its stability, due to very low vacancy, a solvent clientele (affluent families, executives, diplomats, embassies), and quality infrastructure. With a high concentration of ‘triple A’ offices and beautiful residences, the neighborhood limits volatility and supports long-term value.
Risk and investment horizon
The major risk in Villa Morra is that most of the price increase linked to the “discovery” of the neighborhood by the market has already occurred. Margins for future capital appreciation are therefore mechanically more limited than in areas undergoing major transformation. For an investor who prioritizes security and predictability over speculation, however, it is an acceptable trade-off.
Over five to ten years, a realistic scenario combines an annual capital appreciation of 4 to 6%, with a net rental yield on the order of 4–5% after expenses and taxes. In a context of a stable currency and light taxation, this gives a risk-return equation hard to find in other South American capitals.
Carmelitas and Las Lomas: the financial district to watch
Carmelitas has established itself as the major financial and business district of Asunción, with a mix of office towers, high-end residences, and commercial destinations like Paseo Carmelitas. Within this sector, Las Lomas is often cited as one of the most sought-after micro-neighborhoods for combining proximity to corporate hubs and quality of life.
Prices and relative saturation
2026 data shows that Carmelitas plays in the same league as Villa Morra in terms of prices:
| Key indicator (2026) | Estimated value |
|---|---|
| Average residential price (USD/m²) | 1,900 – 2,600 |
| Monthly rent furnished 1-bedroom | 550 – 750 USD |
| Gross rental yield | 5 – 6% / year (7–8% in some tables) |
| Annual appreciation 2023–2026 | 8 – 10% |
| Typical entry ticket | 100,000 – 140,000 USD |
Las Lomas, integrated into this district, appears among the most attractive areas for rental investment according to Airbnb performance data: an average nightly rate around 62 USD, an occupancy rate around 52%, and an estimated gross profitability of 7.4% per year. Again, smaller units (studios, one-bedroom) perform better than average.
Between 2022 and 2025, the supply of high-end apartments increased faster than demand, leading to more than 10% rental vacancy in some projects. This calls for rigorous selection of the project (location, design, management) without questioning the overall appeal of the area.
When to favor Carmelitas / Las Lomas
This district lends itself well to a strategy focused on furnished medium-term rentals (3 to 12 months) targeting corporate executives, consultants on assignment, or young professional couples. By betting on well-equipped properties, suitable for remote work (good connectivity, office space), in well-managed buildings, it is possible to target gross yields around 6–8% with moderate but steady capital appreciation potential.
For an investor holding a speculative asset in an emerging area, Carmelitas/Las Lomas offers a more defensive component while maintaining exposure to the dynamic business center of the Paraguayan capital.
Mburicaó / Manorá: the yield / capital appreciation bet
The duo Mburicaó – Manorá is often described as the most interesting “yield-risk bet” on the Asunción map. These are areas undergoing urban redevelopment, with an already established residential base but still plenty of room for modernization, densification, and repositioning.
Figures that speak to yield hunters
Projections for 2026 give a clearly cash-flow and value-oriented profile:
| Key indicator (2026) | Estimated value |
|---|---|
| Average residential price (USD/m²) | 1,200 – 1,800 |
| Monthly rent furnished 1-bedroom | 500 – 700 USD |
| Gross rental yield | 7 – 9% / year |
| Annual appreciation 2023–2026 | 12 – 18% |
| Typical entry ticket | 65,000 – 100,000 USD |
| Average price observed at Manorá | ≈ 2,107 USD/m² |
In August 2026, Manorá is even cited as the most expensive neighborhood in Asunción in terms of advertised price per square meter, while offering very competitive rental yields. The furnished rental segment works well there, notably thanks to a clientele of local young professionals, creatives, tech profiles, and mid-budget digital nomads.
The gross yield for Manorá reaches 8.1%, which is above average for a neighborhood in transformation.
Urban risk, redevelopment potential
The main risk in Mburicaó / Manorá lies in the fact that urban redevelopment is a long process. Certain streets or axes remain marked by insufficient infrastructure, a heterogeneous built fabric, or a less harmonious coexistence between housing, commerce, and more informal activities.
The potential annual capital appreciation of an apartment in a modern project in Mburicaó or Manorá can exceed 10% per year over several years.
This sector is perfectly suited for the investor willing to accept a bit more urban risk in exchange for above-average performance prospects, especially over a 5 to 10-year horizon.
Las Mercedes: stability and corporate flow
Las Mercedes holds a unique position on the investment map of Asunción. Adjacent to Carmelitas, this corridor mixes residential and office space and hosts a significant number of national and international company headquarters, business hotels, and long-stay residences.
More defensive yield profile
2026 data places Las Mercedes in the stable investment category rather than spectacular:
| Key indicator (2026) | Estimated value |
|---|---|
| Average residential/mixed price (USD/m²) | 1,600 – 2,200 |
| Monthly rent furnished 1-bedroom | 500 – 650 USD |
| Gross rental yield (residential) | 4 – 5% / year (≈ 7% on Airbnb) |
| Annual appreciation 2023–2026 | 6 – 8% |
| Typical entry ticket | 80,000 – 120,000 USD |
Short-term rental performance figures nevertheless indicate good gross profitability (about 7%), with average rents around 64 USD per night and occupancy slightly above 50%. Demand is heavily oriented toward business stays, consultants, and medium-term expatriates, smoothing out seasonal fluctuations.
Well-located offices in Las Mercedes offer yields of 10 to 12% with 3 to 5-year leases. Renting to a multinational reduces the risk of default and maintenance is often the tenant’s responsibility.
For which investor?
Las Mercedes is ideal for an investor who prioritizes cash flow stability over speculation on value. It is a sector where you can sleep well at night: vacancy is low, corporate demand is solid, and price volatility is reduced due to the nature of the occupants.
A portfolio that would combine, for example, a furnished studio rented to executives on assignment and a small office rented to a service company could display a very decent overall yield while remaining resilient in the event of a temporary slowdown in residential demand.
Recoleta: established location, high rental potential
Often associated with Villa Morra in rankings of the best neighborhoods to live and invest, Recoleta stands out for its already well-structured urban fabric, its high-end residential buildings, and a heritage dimension that reinforces its value.
Market data for 2026 indicates a residential price range between 1,200 and 1,800 USD/m², with an estimated annual appreciation potential between 6 and 8%. Luxury projects can reach 2,500–3,500 USD/m², in line with values observed in the best segments of Villa Morra.
Gross rental profitability in Recoleta reaches 10.3% for short and medium-term rentals, based on an average rate of 59 USD per night and a monthly rent of 920 USD.
For an investor, Recoleta thus allows combining:
– access to an established neighborhood, perceived as “top 3” of the city with Villa Morra and Las Lomas
– superior rental yields thanks to a mix of affluent local clientele, expatriates, and business tourists
– limited vacancy risk, due to the concentration of infrastructure and services.
Lambaré, Luque, Fernando de la Mora: bets on growth
Beyond the central core, several municipalities in the Asunción metropolitan area offer opportunities for investors seeking primarily medium-term capital appreciation with a lower entry ticket.
Lambaré: champion of appreciation
Lambaré, located just outside the center, is often cited as the area with the highest growth potential. For 2026, prices are expected in a range of 600 to 1,100 USD/m², with a projected appreciation of 12 to 15% over the year.
We are therefore still at very accessible price levels: where a 70 m² apartment can cost 140,000 USD in Villa Morra, a similar-sized property in Lambaré can still be found around 60,000 to 80,000 USD, depending on quality and location. The price differential leaves significant room for gradual convergence as infrastructure (roads, shops, public facilities) develops.
This percentage represents the estimated net yield after expenses in the Lambaré area, one of the most promising in terms of rental return.
For an investor who primarily wants to “play the curve” over 5 to 10 years, accepting a more local clientele and slightly lower liquidity than in premium neighborhoods, Lambaré is undoubtedly one of the best potential / entry ticket ratios in Greater Asunción.
Luque: the airport effect
Luque directly benefits from its proximity to the international airport and major infrastructure works on the road corridor leading to it. Projects for road widening, new bridges (over the Arroyo Itay), and access improvements are gradually transforming this sector into a logistics and residential hub.
For 2026, prices per square meter are estimated between 500 and 1,100 USD, with a projected annual increase of 10 to 12%. Again, gross rental yields are in an attractive range of 8 to 10%, with net yields of 6.5 to 8%.
This profile is particularly interesting for investors targeting:
Rental and investment options around airport infrastructure
Rentals to airport employees or logistics companies, meeting specific operational needs.
Medium-term rentals for professionals traveling frequently, offering flexibility and comfort.
Land banking strategies: purchasing land in anticipation of future airport infrastructure extensions.
Fernando de la Mora: urbanization in progress
Fernando de la Mora is part of the rapidly developing metropolitan crown, with good connections to downtown Asunción. 2026 forecasts mention prices between 500 and 900 USD/m², with expected appreciation of 8 to 10%.
This is a typical urban expansion area: agricultural or semi-urban land is turning into residential neighborhoods, local shopping centers, and small business zones. For investors who buy early in well-located projects, the potential for value appreciation is significant, even if rental demand remains more domestic.
Summary of the three growth areas
| Area | Price 2026 (USD/m²) | Expected annual appreciation | Profile |
|---|---|---|---|
| Lambaré | 600 – 1,100 | 12 – 15% | Highest capital appreciation, high yield |
| Luque | 500 – 1,100 | 10 – 12% | Airport proximity, logistics, good yield |
| Fernando de la Mora | 500 – 900 | 8 – 10% | Ongoing urbanization, low entry ticket |
For an investor with an intermediate budget looking to diversify beyond already “priced” neighborhoods, these three municipalities offer a rich playground, provided you carefully select locations (proximity to axes, schools, shops) and verify the solidity of developers.
The new frontier: Nueva Asunción and the Franja Costera
A major element in the investment map of Asunción in 2026 is the opening of new areas through large infrastructure projects. Two dynamics deserve particular attention: the development of Nueva Asunción, on the other side of the river, and the transformation of the Franja Costera (Costanera Norte and Costanera Sur).
Nueva Asunción: an unprecedented urbanization front
The inauguration of the Héroes del Chaco bridge has profoundly changed the game. Designed to support more than 10,000 vehicles per day, it connects downtown Asunción to the western region in minutes, opening up vast tracts of land for urbanization and real estate projects.
Nueva Asunción is presented as the most significant urban expansion in the country’s recent history. It features residential projects, mixed-use complexes, and activity zones like Sunset Village (5 hectares), La Ribera, Costa del Norte, Lago Grande, Bosque Soñado, Palma Real, and El Delta, a vast 1,600-hectare masterplan combining residential neighborhoods, offices (Alkan, Navis, Navis II), shops, and a golf course.
For now, prices per square meter remain significantly lower than in the center, leaving enormous catch-up potential. Major developers are talking about tens of millions of dollars invested, with projects already reaching 60 to 75% completion. The first lots of a 550,000 m² development are expected to be delivered as early as the first quarter of 2026.
Franja Costera: the long-term bet of the Costanera
The transformation of the Franja Costera of Asunción, along the Costanera Norte and Costanera Sur, is often presented as one of the most important real estate development cycles in the Southern Cone for the 2025–2030 period. The completion of key infrastructure (additional sections of the Costanera Norte, the Héroes del Chaco bridge, Costanera Sur) and the adoption of new urban regulations create a “blank slate” effect along the riverfront.
Initial operations include auctions of municipal lots at adjusted prices, the MuCi science and technology museum (14,000 m², 20 million USD), the rehabilitation of the port into a gastronomic and cultural market, and a 47,000-seat national stadium inspired by the ñandutí for the 2030 World Cup.
Construction costs on the Costanera Norte between 180 and 350 USD/m² suggest a significant spread compared to prices per square meter in neighborhoods like Santa Teresa or the corporate axis. This differential points to a potential for value doubling in the medium term if demand follows supply.
For an investor, these areas represent a long-term bet, with specific risks (legal complexity of waterfront land, possible slowness of administrative approvals), but also double-digit appreciation prospects over several years.
What to prioritize in 2026 based on your strategy?
Faced with this mosaic of neighborhoods and dynamics, the central question is less “where are prices lowest?” than “which sector matches my risk profile and horizon?”.
We can broadly distinguish three main orientations:
– rental yield strategy
– capital appreciation strategy
– balanced strategy.
To maximize rental yield
Overall profitability data indicates that the best candidates for targeting high gross yields (often 8–10% or more) are:
Selection of areas offering opportunities depending on duration, budget, and target clientele
Gross yields of 7 to 9%, strong short and medium-term demand, prices still below historical premium neighborhoods
Very affordable prices per square meter, gross yields of 8 to 10% on well-located projects, solid local and peri-urban clientele
In the Airbnb segment, average gross yield around 10.3%, very good quality of neighborhood / rental performance ratio
Some pockets offer good occupancy rates and higher rents, especially for small units
In these areas, the key to success will be management: quality furnishings, clear positioning (corporate, students, digital nomads), presence on the right platforms, and possibly using a specialized local manager.
To target high capital appreciation
For capital appreciation hunters over a 5–10 year horizon, the following sectors offer interesting leverage:
Analysis of price growth prospects in four key areas of Greater Asunción, based on projected annual appreciation and development factors.
Annual appreciation already observed at 15 to 20% between 2023 and 2026, driven by the spillover effect of office towers, malls, and hotels.
Expected price growth of 12 to 15% per year, starting from a very low base offering strong catch-up potential.
Anticipated increase of 10 to 12% per year, combined with the impact of road improvements and proximity to the airport.
Vast urbanization fronts with still low prices, offering significant catch-up potential if infrastructure and facility projects materialize.
In these niches, a “pre-construction” or land purchase approach can further amplify performance, albeit with higher project risk.
For a balance of yield / security
More cautious profiles, seeking a compromise between security, yield, and liquidity, will instead turn to:
– Villa Morra: established premium neighborhood, low vacancy, solvent clientele, gross yield around 5–6% but high stability
– Carmelitas / Las Lomas: already established financial district, growth potential still present, yields 5–7% with good management
– Las Mercedes: mixed residential-corporate corridor, stable rental flows, good demand from expatriates and executives
– Recoleta: established neighborhood with an interesting combination of moderate appreciation and yield close to 10% on short-term rentals.
These areas are well suited for investors who want to be able to resell more easily in the medium term and benefit from an already deep secondary market.
Property size, rental type, and management: other key variables
Beyond neighborhood choice, two elements strongly influence profitability: the type of asset and the operating mode.
Market figures show that studios and one-bedroom apartments generally generate the best rental yields, especially in central neighborhoods or near business hubs and universities. Their entry ticket is lower (a studio in Asunción can still be acquired between 45,000 and 75,000 USD, a one-bedroom unit between 60,000 and 110,000 USD) and demand is broader, whether from young professionals, students, consultants, or digital nomads.
Two-bedroom or larger homes, from 90,000–180,000 USD, are ideal for families and long stays. Their gross yield is slightly lower, but rental stability compensates, especially in neighborhoods like Villa Morra, Recoleta, or Las Mercedes.
On the operating side, the observation is clear: furnished rental, whether long-term or short-term, maximizes income. Yields on unfurnished rentals lag behind, while the furnished market benefits from the wave of digital nomads, increased corporate stays, and residence-by-investment programs. Airbnb data for Asunción shows occupancy rates often above 50%, median nightly rates around 50 USD, and double-digit revenue growth in recent years.
For foreign or non-resident investors, delegated management by specialized companies (short-term rentals or full property management) is recommended. With gross yields of 6 to 10%, it is realistic to pay a management fee while still retaining an attractive net yield.
Conclusion: Asunción, a market to select neighborhood by neighborhood
In 2026, investing in Asunción is no longer an exotic bet. Paraguay’s macroeconomic fundamentals are solid, the currency remains stable, taxation is light, and the capital is benefiting from an influx of capital and projects that are transforming its urban landscape. Prices remain about half those of major regional metropolises, even as rental yields rival or exceed those of much more publicized markets.
The key now is granularity:
Surubi’í and Aviadores del Chaco offer good yield with strong capital appreciation at the heart of the corporate corridor. Villa Morra, Carmelitas, Las Lomas, Recoleta, and Las Mercedes allow you to secure premium positions with a balance of profitability and security. Finally, Mburicaó, Manorá, Lambaré, Luque, Fernando de la Mora, as well as Nueva Asunción and the Franja Costera, offer strong growth potential at still very low prices.
The investor who takes the time to analyze each sector, compare the numbers (price per square meter, rents, vacancy rates, infrastructure prospects) and adapt the type of property and operating mode to local demand has, in Asunción, a rare combination: access to the growth of a market in its nascent maturity phase, while starting from price levels still far from the peaks reached elsewhere in South America.
In this city that is progressively positioning itself as a regional business hub, residential real estate remains, in 2026, one of the most powerful levers for those who know how to choose the right neighborhood at the right time.
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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.
