David Rodriguez Moreira, CEO of Paraguay Sotheby's International Realty, analyzes the urban transformation of Asunción, which must decide between expanding vertically or to the outskirts. High-rise multifamily projects are attracting young professionals, but for those who prefer traditional homes, northern expansion stands out as a long-term sustainable solution.
In the midst of an unprecedented urban transformation, Asunción faces two crucial paths for its growth: expanding vertically or extending to the outskirts. Currently, the Paraguayan capital is experiencing notable development in high-rise multifamily projects, attracting a segment of the population that seeks apartment living, especially in well-located areas, close to shopping and educational centers.
However, this change also implies a different lifestyle that the locals of Asunción and Greater Asunción have historically been accustomed to, who value having a house with a patio, pool and their own space. For those looking to maintain that quality of life, options within the city are becoming increasingly limited and expensive.
Limitations and Historical Development
Asunción has been, and continues to be, limited by the Paraguay River, which has influenced its development since its beginnings in the Bay of Asunción, the place of arrival of the first colonizers. For almost a century and a half, urban growth was concentrated around this area. However, in the last two decades, new areas such as Villamorra, Recoleta and Ykua Sati have emerged as poles of development and high-rise residence.
These new growth centers have significantly raised land costs in residential areas near business centers. Today, acquiring land in these areas can require an investment starting at 200,000 to 300,000 dollars, which represents a considerable challenge for new generations seeking to establish themselves.
Expansion to the East and South
The expansion towards the east, covering areas such as Fernando de la Mora, San Lorenzo and Capiatá, faces problems of densification and congested access. The main roads such as Mariscal López and Eusebio Ayala are saturated, and there are no short-term road infrastructure plans that promise to alleviate this situation. This makes the daily commute to Asunción, which receives around one and a half million people each day, a significant challenge.
On the other hand, the expansion towards the south, in areas such as Ñemby, San Antonio, Ypané and Guarambaré due to the advantage of the Paraguay River in this area, which when the water level at the river goes down, this is an area where cargo ships can reach, since It is difficult for them to go up stream. For this reason, everything that has to do with ports and logistics services is being developed here. These areas are being consolidated as a logistics centers, with a focus on social and mid-segment housing for workers in these industries.
The West: The Promise of Nueva Asunción and Chaco'í
Development to the west, with projects such as Chaco'í and Nueva Asunción, represents a long-term promise. Although the bridge connecting this area with Asunción was recently completed, the lack of an urban planning and basic services has prevented immediate development. Currently, there are only private initiatives trying to promote the area, but they still lack public infrastructure and service proposals such as schools, shopping centers and leisure services, which makes this development still a distant promise.
Northward Expansion: A New Development Frontier
Northward expansion is one of the most promising areas for Asunción's growth. Over the past 30 years, residential projects such as Surubi'i and the Centennial Club have attempted to develop this area, although accessibility has been a constant challenge. However, the growth of the urban area and the evolution of Luque have changed the panorama.
Completed and Underway Projects North of Asunción
Projects and Developments in the North
Luque has developed impressively, attracting significant investments in residential and commercial projects. The duplication of the route that borders the airport and improvements at intersections promise smoother traffic, facilitating access to areas such as Mariano Roque Alonso and Limpio. This infrastructure project will not only improve connectivity but also boost development across the northern zone.
Projects such as Aquadelta, Los Pingos, Altmaria Surubi'i, Pueblo del Rio, Fortis, and the new Maple Bear bilingual school in Surubi'i are examples of the dynamism that is occurring in this area. Additionally, new shopping centers such as Plaza Norte and Los Mimbres Open Mall reflect a trend towards high-quality developments in this region. These initiatives are accompanied by other leisure and educational proposals, although the implementation of large-scale health services is still missing.
Impact of Investments and Opportunities
Investments in the north are transforming the area into an attractive place to live. The possibility of acquiring land at affordable rates, as is the case with the Aquadelta project, provides an opportunity for new generations to build their home in a modern and well-equipped environment. With installments of approximately $800 over a 10-year term, future owners can plan the construction of their homes in gated communities with comfort and security.
This expansion not only offers a short-term solution, but also a prospect for long-term sustainable growth. The proximity to the Paraguay River and development projects such as Los Pingos and Aquadelta are reconnecting the city with its natural environment, providing a superior quality of life compared to the densely urbanized areas of Asunción.
Future Vision
Looking ahead five years, Asunción faces an inevitable reality: it will be a more expensive and possibly a more chaotic city. The new generations, especially young couples, need viable alternatives to establish themselves. Northward expansion offers these opportunities, allowing families to acquire land and build their homes in a safe and well-planned environment.
Over time, the capital gain of these lands and projects will allow owners to revalue their investments and access mortgage loans to continue developing their properties. This not only improves the quality of life of the inhabitants, but also contributes to the economic growth and stability of the region.
Asunción is at a critical point in its urban development. As traditional areas become increasingly inaccessible and chaotic, the north emerges as the new horizon of growth, offering a long-term solution for the city's expansion. Investments and projects in this area not only promise a better quality of life, but also an opportunity for sustainable development for the future of Asunción. With a focus on infrastructure, accessibility and quality of life, northward expansion is emerging as the answer to Asunción's urban challenges in the coming years.
If you would like to learn more about the opportunities at Limpio and Mariano Roque Alonso, you can contact Paraguay Sotheby's International Realty at +595 982445093 .
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