Written By: Jacquelyn Annete García Vadnais
Paraguay is one of the most mysterious countries in South America; however, it is becoming a market that is making great strides in recent years. Even though Paraguay had a primary focus on agriculture, there is a great deal of potential for Paraguay to develop in the years to come. In terms of real estate investment, the capital city of Asunción offers an incredible quality of life to citizens and expats alike. Due to the affordable price of real estate in Asunción, it is absolutely worth investigating for foreign real estate investors who are looking for affordable investments that may give rise to permanent residency or nationality in the long term. In order to learn more about important factors to consider when deciding to invest in Asunción, Paraguay, it is highly recommended to review the information below:
History of Paraguay
Paraguay has an interesting and unique history. Prior to colonization, there were many tribes of indigenous peoples within Paraguay. The indigenous population in Paraguay were named the Guaraní. The Spanish arrived in 1537 and established Asunción. Many of the Guaraní people died during colonization. However, the Guaraní were known as a fierce people that sought to conquer other lands on the border of Brazil and into Argentina prior to the Spanish colonization. The Spanish continued to control Paraguay until the Paraguayan people overthrew the Spanish rule and declared their independence in 1811. After independence, Paraguay had several dictatorships that started with José Gaspar Rodríguez de Francia, followed by Carlos Antonio López. The War of the Triple Alliance from 1865 – 1870 engaged Paraguay, Uruguay, Brazil, and Argentina where Paraguay lost two thirds of its male population and a great deal of land. Shortly after, Paraguay engaged in the Chaco War from 1932 – 1935 where over 30,000 soldiers died and Paraguay lost more territory to Bolivia. After World War II, Alfredo Stroessner took power and became a dictator whose Colorado party ruled until 1993. Even though politicians attempted to obtain power in subsequent years, the Colorado party has continued to have political influence in the country until today. Current day Asunción, is known for its striking colonial, and modern architecture, its multitude of international restaurants, green areas, and shopping malls. The city also contains many significant houses of worship, including a mosque, many churches, and two synagogues.
Factors to Consider Before Investing in Real Estate in Asunción, Paraguay
Affordable Cost of Living
Paraguay has a very affordable cost of living. For example, an apartment of 100 square meters costs close to $40,000 USD in Asunción. That said, rental yields can be quite low with an average of $70 USD per month. Prospective real estate investors need to consider whether this rental yield is worthwhile in the longer term as Paraguay begins to expand in the future.
Potential for Industry Expansion
Paraguay has traditionally been focused on agriculture; however, this is about to change with the potential of exporting energy to other countries. As Paraguay begins to explore these possibilities, it will bring more jobs to the country and increase the prosperity of the country in the years to come. For real estate investors, energy investment could position Paraguay to be a powerful country in Latin America, which has the potential to increase the value of real estate purchase prices and rental yields in the future.
Political Instability
Paraguay has a high level of corruption due to the Colorado political party and its continued influence in politics. Where this becomes an issue is when trying to resolve any potential real estate-related disputes in court related to land seizures. Real estate investors need to consider whether the investment they are attempting to make in Asunción will be worthwhile and have the most legal protections possible. Even though Paraguay does have political instability, it does have an economy that has less bureaucratic hurdles for conducting commerce than Argentina, for example. For this reason, there are opportunities within Paraguay; however, investors need to conduct extensive research in order to make informed decisions before deciding to invest in Paraguay.
Possibility of Acquiring Nationality for Foreign Citizens
Paraguay is considered to have one of the most liberal immigration systems for foreign nationals that want to obtain permanent residency or citizenship. One benefit to investing in Paraguay is that through investment, it is possible to obtain permanent residency immediately and then after three years of permanent residency, become a citizen. Real estate investors are encouraged to consider this option to have better taxation rates on real estate. If a foreign citizen is able to obtain Paraguayan nationality, then they will be a MERCOSUR citizen, which enables them to reside and work in most countries in South America. Paraguay’s membership to MERCOSUR makes them competitive not only for nationality but also for the future potential for trade partnerships within the region. Given that Paraguay is a land-locked country, this is a great benefit to their economy.
Final Remarks
Paraguay offers many opportunities to investors in many different industries. Paraguay has a great deal of potential as the country begins to expand beyond their traditional agricultural sector and into more diverse industries to enhance their economy. In terms of real estate investment, Paraguay has a great deal of potential for an investor that wants to acquire property in Asunción that will have a long-term value or produce rental income for an extended period of time. As more industries come to Paraguay, there will be more of a need for their short-term rental market to develop. As tourism begins to grow, Paraguay will also have an additional area that real estate investors will be able to capitalize upon. If Paraguay positions itself well in the coming years and the political instability improves, it has a great deal of potential to attract more international investment than other markets in Latin America that have more red tape.
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Paraguay is one of the most mysterious countries in South America; however, it is becoming a market that is making great strides in recent years. Even though Paraguay had a primary focus on agriculture, there is a great deal of potential for Paraguay to develop in the years to come. In terms of real estate investment, the capital city of Asunción offers an incredible quality of life to citizens and expats alike. Due to the affordable price of real estate in Asunción, it is absolutely worth investigating for foreign real estate investors who are looking for affordable investments that may give rise to permanent residency or nationality in the long term. In order to learn more about important factors to consider when deciding to invest in Asunción, Paraguay, it is highly recommended to review the information below:
History of Paraguay
Paraguay has an interesting and unique history. Prior to colonization, there were many tribes of indigenous peoples within Paraguay. The indigenous population in Paraguay were named the Guaraní. The Spanish arrived in 1537 and established Asunción. Many of the Guaraní people died during colonization. However, the Guaraní were known as a fierce people that sought to conquer other lands on the border of Brazil and into Argentina prior to the Spanish colonization. The Spanish continued to control Paraguay until the Paraguayan people overthrew the Spanish rule and declared their independence in 1811. After independence, Paraguay had several dictatorships that started with José Gaspar Rodríguez de Francia, followed by Carlos Antonio López. The War of the Triple Alliance from 1865 – 1870 engaged Paraguay, Uruguay, Brazil, and Argentina where Paraguay lost two thirds of its male population and a great deal of land. Shortly after, Paraguay engaged in the Chaco War from 1932 – 1935 where over 30,000 soldiers died and Paraguay lost more territory to Bolivia. After World War II, Alfredo Stroessner took power and became a dictator whose Colorado party ruled until 1993. Even though politicians attempted to obtain power in subsequent years, the Colorado party has continued to have political influence in the country until today. Current day Asunción, is known for its striking colonial, and modern architecture, its multitude of international restaurants, green areas, and shopping malls. The city also contains many significant houses of worship, including a mosque, many churches, and two synagogues.
Factors to Consider Before Investing in Real Estate in Asunción, Paraguay
Affordable Cost of Living
Paraguay has a very affordable cost of living. For example, an apartment of 100 square meters costs close to $40,000 USD in Asunción. That said, rental yields can be quite low with an average of $70 USD per month. Prospective real estate investors need to consider whether this rental yield is worthwhile in the longer term as Paraguay begins to expand in the future.
Potential for Industry Expansion
Paraguay has traditionally been focused on agriculture; however, this is about to change with the potential of exporting energy to other countries. As Paraguay begins to explore these possibilities, it will bring more jobs to the country and increase the prosperity of the country in the years to come. For real estate investors, energy investment could position Paraguay to be a powerful country in Latin America, which has the potential to increase the value of real estate purchase prices and rental yields in the future.
Political Instability
Paraguay has a high level of corruption due to the Colorado political party and its continued influence in politics. Where this becomes an issue is when trying to resolve any potential real estate-related disputes in court related to land seizures. Real estate investors need to consider whether the investment they are attempting to make in Asunción will be worthwhile and have the most legal protections possible. Even though Paraguay does have political instability, it does have an economy that has less bureaucratic hurdles for conducting commerce than Argentina, for example. For this reason, there are opportunities within Paraguay; however, investors need to conduct extensive research in order to make informed decisions before deciding to invest in Paraguay.
Possibility of Acquiring Nationality for Foreign Citizens
Paraguay is considered to have one of the most liberal immigration systems for foreign nationals that want to obtain permanent residency or citizenship. One benefit to investing in Paraguay is that through investment, it is possible to obtain permanent residency immediately and then after three years of permanent residency, become a citizen. Real estate investors are encouraged to consider this option to have better taxation rates on real estate. If a foreign citizen is able to obtain Paraguayan nationality, then they will be a MERCOSUR citizen, which enables them to reside and work in most countries in South America. Paraguay’s membership to MERCOSUR makes them competitive not only for nationality but also for the future potential for trade partnerships within the region. Given that Paraguay is a land-locked country, this is a great benefit to their economy.
Final Remarks
Paraguay offers many opportunities to investors in many different industries. Paraguay has a great deal of potential as the country begins to expand beyond their traditional agricultural sector and into more diverse industries to enhance their economy. In terms of real estate investment, Paraguay has a great deal of potential for an investor that wants to acquire property in Asunción that will have a long-term value or produce rental income for an extended period of time. As more industries come to Paraguay, there will be more of a need for their short-term rental market to develop. As tourism begins to grow, Paraguay will also have an additional area that real estate investors will be able to capitalize upon. If Paraguay positions itself well in the coming years and the political instability improves, it has a great deal of potential to attract more international investment than other markets in Latin America that have more red tape.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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