Asunción, the new Mecca for Real Estate

By Berkemeyer Attorneys & Counselors

An article by Argentine economic newspaper Ámbito highlights the transformation of Asunción, capital city of Paraguay, into one of the most dynamic markets throughout Latin America and the Caribbean.

"Profitability, legal security, economic growth and a dynamic market are just some of the main features of Asunción that seem to seduce foreign investors today and take the city to the status of being the new revelation in Latin America", says the article. "Asunción is today a cheap, attractive, dynamic and growing market. While in 2003 the price of land had an average value per m2 of US$ 100, today that figure reached a value of US$ 800 and is expected to reach US$ 1.200 per m2 in only two years", it adds.

That´s a long way for Asunción, one of the oldest cities in South America and the longest continually inhabited area in the Río de la Plata Basin. The largest city of Paraguay (roughly 30% of Paraguay's 6 million people live within Greater Asunción) its demography has a bright figure looking towards the future: 65 percent of the total population in the city are under the age of 30.

Beyond its young population there are other elements that have contributed to the emergence of the city, like its strategic location between Argentina, Brazil, Bolivia and Chile, which means "a nexus to reach the Pacific Ocean", according to Ámbito, but also a valued proximity to the two biggest countries in the region, Argentina and Brazil.

That has allowed an increase in tourism from both neighbor countries, who visit Asunción seduced by the potential of its real estate industry, other investment opportunties and its approachable shopping prices "in the last year the shopping tourism in Asunción grew up considerably, partly caused by the fact that technology, cosmetics and footwear are obtained at amounts 60% cheaper than Argentina", finishes Ámbito.