The real estate investment boom in Paraguay

Some reference values: for buildings under construction with common areas (gym, sauna, swimming pool, meeting rooms, co-working), average values are around U$S 1,400 to 1,600 per square meter. In the case of buildings with only amenities, such as terrace and grill, they are in the order of U$S 1,200 to U$S 1,400. Prices per square meter go up according to the height of the apartment, normally U$S 1,000 more per floor.

Property management costs between 8 and 10 percent of the monthly rental cost of the property. This is the reason why most foreign investors prefer to invest in buildings that have the added bonus of administrative management by the same construction/development company.

More than 50 percent are Argentinean, which is explained by the neighboring country's proximity and the particular economic conditions of the neighboring country at present. However, the participation of investors from other countries in the region and Europe is also growing.

There are three costs at the time of reselling the property in which you have invested: (1) the retention to the State, which is 6% for foreigners, and 2.4% for those who have a Paraguayan Identity Card. This is an additional reason why many foreigners choose to operate with Gestoría en Paraguay, since we provide them with comprehensive advice and we expedite all the steps to obtain the Paraguayan identity card and, thus, take advantage of all the benefits; (2) the real estate commission of 5.5%; (3) notary fees, which are usually 2% and are paid in equal parts between buyer and seller.