How Much Does a House Cost in Paraguay?

Paraguay’s real estate market draws interest from both local and international investors. The country is recognized for offering some of the most accessible property prices in Latin America, making it an appealing destination for those considering homeownership or investment opportunities. This affordability, combined with a stable economic environment, contributes to a market with considerable potential for growth and capital appreciation. As the nation continues its development, understanding the various facets of its housing costs becomes increasingly relevant for prospective buyers.

Factors Influencing Property Value

The value of real estate in Paraguay is shaped by several interconnected factors. Economic growth within the country directly impacts demand and property values. Political stability attracts both domestic and foreign investments into various property types.

Property characteristics also play a significant role in determining market value. The size of the property, encompassing both land area and built area, directly correlates with its price. The quality of construction, materials used, and the age of the property contribute to its valuation. Properties featuring amenities such as swimming pools, garages, or gardens typically command higher prices due to increased comfort and appeal. Urbanization trends, particularly in major cities, drive up demand for housing, influencing price variability. Infrastructure development across different regions enhances property values by improving connectivity and accessibility.

Typical Home Price Ranges

Residential property prices in Paraguay vary considerably based on type and general location. In Asunción, the capital city, the average price for an apartment is approximately $1,750 per square meter, making it one of the most affordable capital cities in South America for property. A standard 80-square-meter apartment in Asunción might cost around $140,000. For modern properties, entry-level prices in Asunción can begin around $150,000, with starting prices for all properties in the city generally around $250,000.

Houses also present a range of prices depending on their size and amenities. Properties can range widely from under $100,000 for smaller or older homes to several hundred thousand dollars for larger, more modern residences. For instance, a new house of 144 square meters in the Hernandarias District was listed for $180,000, and a 250-square-meter chalet in the same district for $235,000. Luxury properties, often found in prime areas, can be significantly higher, with some apartments in Asunción listed for over $1.9 million and houses with extensive construction and land areas reaching $700,000 or more. Rural country houses can start from around $47,000 to $56,000.

Regional Price Differences

Property costs in Paraguay show differences across its regions and urban centers. Asunción, as the economic and cultural hub, generally has higher property values compared to other areas. Within Asunción, prices can still differ, with upscale neighborhoods like Manora seeing average prices around $1,700 per square meter, while areas like Jara average around $1,000 per square meter. The city center of Asunción also reflects higher apartment prices.

Moving outside the capital, prices can decrease significantly, falling to under $900 per square meter. Ciudad del Este, a major trade hub on the border with Brazil and Argentina, also features a dynamic market, though specific average prices per square meter vary. Encarnación, known for its waterfront development and growing tourism, has seen increased popularity for residential and tourist-related real estate investments. Rural land prices are lower, with an average price per hectare in rural areas around $10,000, and some land available for as low as $800 per hectare, depending on location and use.

Additional Costs of Home Ownership

Beyond the initial purchase price, owning a home in Paraguay involves additional expenses. Closing costs are a significant component, ranging from 6.75% to 8.25% of the property value, with the buyer usually responsible for about 5.75% of this burden. This includes a transfer tax (Impuesto a la Transferencia de Inmuebles, ITI) of generally 3% of the property’s registered or transaction value, whichever is higher, usually paid by the buyer. Notary fees, for services like checking property titles and legalizing purchase agreements, range from 0.75% to 2% of the property value, plus a 10% Value Added Tax (VAT). Real estate agent fees, if applicable, are 3% to 5% of the purchase price. A municipal tax on transfers is 0.3% of the property price in Asunción and 0.2% in other cities.

Annual property taxes in Paraguay are low, ranging from 0.5% to 1% of the cadastral value of the property, which is often less than its market value. For rural properties smaller than five hectares used for agriculture or cattle ranching, the rate can be 0.5%. Utility costs are also part of ongoing ownership expenses. For a standard apartment, monthly electricity bills can range from $18 to $50, influenced by air conditioning use, especially during the hot summer months. Water service costs between $6 and $10 monthly, while high-speed internet can range from $18 to $31 per month. General maintenance and repair expenses will depend on the property’s age and condition, but homeowners should budget for routine upkeep to preserve their investment.