Alex Loza, director of Grupo Barcelona, whose career in Paraguay is marked by a deep commitment to both social development and innovation in the real estate sector. With a solid background in Business Administration and a specialization in taxation in Spain, Loza initially came to Paraguay as a volunteer, where his work in the educational field led him to become involved with the ALDA Foundation, dedicated to improving the quality of life and education of children and young people in disadvantaged communities.
In search of ways to finance the foundation's projects, Loza decided to explore the real estate market at a time when Paraguay was beginning to stabilize macroeconomically. Thus, in 2007, the first project of the Barcelona Group was born, Edificio Barcelona in Villamorra, which marked the beginning of a series of successful developments that have transformed the urban landscape in Asunción and Encarnación.
Today, with more than 500 apartments built and multiple completed projects, Grupo Barcelona is a benchmark in the sector, with business units that range from the development, construction and management of buildings to the hotel industry. Among its most notable projects are the Hotel Palmaroga and several iconic buildings in Asunción and Encarnación.
In this interview, Alex Loza shares his vision on the evolution of the real estate market in Paraguay, the challenges he has faced along the way, and his focus on combining business success with a positive impact on the community.
How has real estate development in Paraguay changed since you arrived until today?
The change in real estate development in Paraguay has been really impressive. When I arrived, there were very few buildings in Asunción, and the idea of living in an apartment was relatively new to many. The buildings were mainly in the historic center, and the construction technology was quite rudimentary. I remember that, at first, I was surprised to see that they used wooden props in construction, something that had already become obsolete in Europe. However, in the last 12 or 13 years, we have witnessed a huge leap in construction technology. Today, it is unthinkable to build a building without a crane, but in our first project, we did it without that technology.
Furthermore, the professionalization of the sector has been remarkable. Engineers, architects and other construction professionals have raised standards, which is reflected in the quality of buildings being built today. However, despite these advances, access to credit remains a significant challenge for both developers and end buyers. In the early years, it was almost impossible to obtain financing, and what little there was was extremely expensive. Although there have been improvements, it is still an area where much work is needed to facilitate access to housing and real estate development in general.
What factors motivated you to invest in downtown Asunción, especially with iconic projects like the Hotel Palmaroga, in an area that other companies may have overlooked?
The center of Asunción has a historical and cultural value that cannot be ignored. When we decided to invest in the city center, we knew that we were betting on an area that had been forgotten by many, but that had enormous potential. The history of the city center of Asunción is rich and deep. It is the place where the city began to develop, where the first great architectural works were carried out, and where much of the country's historical heritage is found.
Our Hotel Palmaroga revitalization project is a clear example of what we believe can be achieved in the downtown area. By restoring this historic building, we are not only preserving an important part of the early 20th century architecture, but also demonstrating that it is possible to restore downtown Asunción to its former glory. We firmly believe that we all have a responsibility to contribute to making downtown the heart of the city again – not just a place where people work, but a vibrant area where the history of Asunción is lived, enjoyed and celebrated.
Having participated in the restoration of heritage buildings such as the Hotel Palmaroga and the Palacio Ingrid, what do you consider to be the main challenges when restoring and revitalizing historic buildings in Paraguay?
Restoring historic buildings in Paraguay presents several challenges, one of the most significant being the lack of incentives for investors. It is essential that there is collaboration between the public and private sectors to revitalize downtown Asunción and other historic sites. For example, when we decided to restore the Palmaroga Hotel, we were faced with the reality that there was no financial or tax support to facilitate this type of project. I believe that there should be incentives such as tax breaks for construction and for the rehabilitation of heritage buildings. If an investor is willing to put their money into a project that revitalizes a historic area, they should receive some kind of support, whether in the form of credit subsidies or tax exemptions.
Furthermore, the revitalization of the center does not only depend on developers. It is essential that the area is well maintained, with clean streets, good lighting and security. These are basic conditions that must be guaranteed to attract both investors and residents. Sometimes it seems that these projects are complicated, but in reality, with good planning and the right support, it is much simpler than you think.
What is the key to long-term success in real estate projects?
The key to long-term success in real estate development lies in building relationships of trust. When a client trusts you, it is because you have proven to be reliable and professional at every stage of the project. This bond of trust is something that is earned over time, through honest, transparent and committed work. It is important for developers to understand that it is not just about selling a property, but about accompanying the client throughout the entire process, ensuring that their investment is well protected.
Another key piece is the management of buildings once they are completed. Keeping a building in good condition over the years requires constant effort. It is not enough to build something beautiful; you also need to make sure it stays that way. The difference between a building that is still attractive and functional after 10 or 15 years, and one that deteriorates rapidly, is in the quality of management. This includes everything from maintaining the facilities to responding quickly and effectively to any incidents that may arise. It is a long-term commitment that many underestimate, but it is essential for the sustained success of any real estate development.
What motivated you to expand beyond Asunción and develop projects such as Torres Bolik, Paraná Playa Apartments and Paraná Playa Costanera in Encarnación?
Expanding into other cities like Encarnación was a strategic decision. As competition in Asunción and the metropolitan area increased, we saw the need to look for new opportunities in less saturated markets. Encarnación, in particular, caught our attention due to its growth and potential for real estate development. Although we faced challenges, such as the reluctance of the local population to live in apartments, we believe that the city has a great future.
Encarnación is a city with many qualities: its waterfront, its tranquility and its proximity to Posadas make it an attractive place to live and invest. However, one of the biggest challenges is breaking the seasonality that limits economic activity to the summer months. If we manage to develop events and activities throughout the year, Encarnación could become a very interesting city to live in, not only for locals, but also for people from other parts of the country and abroad. The key is to diversify the offer and make the city attractive at any time of the year.
What advice would you give to a foreigner who wants to invest in the real estate market in Paraguay?
My advice to any foreigner considering investing in Paraguay's real estate market is to do so with caution and an open mind. While you may have a lot of experience in other countries, Paraguay is a unique market with its own particularities. It is essential to take the time to understand the local culture, rules and regulations, and market dynamics. Although we share the same language, the way of doing business here is different, and you need to adapt to be successful.
I have seen many foreigners, especially Spaniards, who come with the idea that they will be able to replicate exactly what they have done in their home country, but quickly realize that they need to adjust their approach. Adapting to local customs, building relationships, and understanding the market from the inside is crucial. Additionally, it is important to work with trusted local partners who can guide you through the process and help you navigate the complexities of the Paraguayan real estate market.
What would you say is one of the main lessons you learned while developing here in Paraguay?
One of the main lessons I have learned is the importance of getting things right from the start and maintaining a service-oriented attitude to any eventuality. In any construction project, there will always be unforeseen events, but what really matters is how you respond to them. Being honest, working hard and willing to accompany the client throughout the entire process is crucial.
Trust is a fundamental pillar in our business. Without trust, there is no long-term relationship. I have learned that it is essential to not only deliver what is promised, but also to exceed the client’s expectations, whenever possible. In addition, it is vital to have a focus on quality, not just in what is visible, but in all aspects of the building. These are the things that really matter in the long run, and which often go unnoticed when evaluating a building.
Being part of CAPADEI (Paraguayan Chamber of Real Estate Developers) has also helped us stay aligned with the best practices in the sector. It is a seal of quality that guarantees that developers are committed to high standards at all stages of real estate development. Ensuring that all aspects of a project are carried out with the highest quality is what really sets a good developer apart.