In Paraguay's dynamic real estate scene, the luxury residential market has undergone a significant transformation in recent years, with a special focus on apartments and residences. In an interview with David Rodríguez Moreira, CEO of Paraguay Sotheby's International Realty, we explore the trends, developments and challenges that characterize this thriving sector.
Luxury Apartments in Asunción
When we address the topic of luxury apartments in Asunción, Rodríguez highlights the notable evolution that this market has experienced in the last seven years. He points out that the substantial increase in apartments aimed at the luxury segment has been evident, with varied proposals.
Jade Park, for example, is distinguished by its spacious grounds and an impressive array of amenities. With three residential towers offering two, three and four-bedroom units, it is located in a residential neighborhood, providing an exclusive living experience. On the other hand, the residential building Eminent offers apartments furnished by Armani in the new corporate district of the city, attracting clients, which is distinguished by its European style and high-end amenities.
The apartment market reflects a transition in the preference of Paraguayans towards this type of housing. Rodríguez highlights that those who opt for apartments tend to be people in a different stage of their lives, such as couples whose children have entered university abroad. Convenience, security and lower maintenance burden are determining factors in this transition towards apartments smaller than a house, but luxurious.
Variety in Apartment Proposals
The variety of proposals in the apartment market is evident in developments such as Carmen Dora, which offers spacious 380 square meters, and Casa Vista, with lockable apartments of up to 500 square meters. Flexibility in options, both in size and location, allows buyers to tailor their choices to their specific needs and preferences.
Apartments offer benefits that go beyond living space, such as distributing maintenance costs for common areas. This feature, together with safety and practicality, contributes to a high quality of life in urban environments. Furthermore, the appreciation of Asunción's panoramic view and its lush green surroundings has led to increased demand for luxury apartments.
Luxury Residences and the Diversity of Demand
When addressing the luxury residence segment, Rodríguez highlights the diversity in demand, classifying them into different price ranges. Residences ranging from USD 500,000 to USD 1,000,000 are particularly sought after, with buyers seeking modern style, spacious patios and locations in traditional neighborhoods such as Ycua Satí, Santo Domingo, San Jorge, Manorá, Las Lomas and Mburukuya.
As the price increases, demand decreases slightly, and buyers in the $1,000,000 to $1,500,000 range tend to purchase land and build their own homes.
Gated Neighborhoods: Growing Trend
The interview reveals that gated communities have experienced rapid acceptance in the luxury market in Paraguay. Security and internal infrastructure, which often exceeds public availability, are key factors in its success. These developments offer artificial lagoons, outdoor gyms, event halls, restaurants and more, creating an exclusive lifestyle.
Luxury in Other Regions of Paraguay
The interview with Rodríguez also highlights the rise of the luxury market in other regions of Paraguay, such as Alto Paraná, where Ciudad del Este and Hernandarias are notable for developments such as the Parana Country Club and Costa del Lago. Likewise, Encarnación has experienced significant growth, driven by investments, tourism infrastructure, and the migration of Argentines during the pandemic.
Santa Rita, with its agri-livestock focus and thriving farming community, has emerged as a locally strong residential market. Although the market is smaller in size, Santa Rita stands out for having the highest domestic product per capita in the country, driven by agricultural activity.
Rodríguez also mentions the emergence of new areas, such as Nueva Asunción, promoted by the new Heroes del Chaco bridge. This area is expected to develop further in the coming years, with the addition of schools, shopping centers and more.
Challenges and Opportunities in the Luxury Market
As for the challenges, Rodríguez points out a lack of supply in the range of 500,000 to 1,000,000 dollars for modern residential houses in good condition. This gap between demand and supply presents an opportunity for developers and sellers who can meet the expectations of a growing market.
In recent years, the local market has experienced an increase in the offering of architectural services and designs, with new architects graduating every year and local suppliers importing high-quality materials. This has led to greater diversification in terms of architectural styles and proposals.
Conclusions and Future Perspectives
The interview with David Rodríguez Moreira offers a comprehensive vision of the luxury market in Paraguay, highlighting the diversity of options in apartments and residences. The evolution of buyer tastes and preferences, along with the growth of specific areas, reveals a constantly changing and expanding real estate market.
As new proposals and developments continue to emerge in Asunción and other regions, the future of the luxury market in Paraguay looks promising. The combination of unmet demand, infrastructure development and a growing supply of services and architectural designs positions Paraguay as an attractive destination for those seeking to live in luxury and exclusivity.