Real Estate - Paraguay

Paraguay

The Real Estate market market in Paraguay is forecasted to achieve a noteworthy milestone, with its value projected to reach a staggering US$188.10bn in 2024.
Among the various segments within the market, Residential Real Estate reigns supreme, with an estimated market volume of US$150.00bn by 2024.
This particular segment is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 3.15%, resulting in a substantial market volume of US$219.70bn by 2029.
It is important to note that in the global context, United States is poised to generate the highest value in the Real Estate market market, amounting to a staggering US$132.0tn in 2024.
Paraguay's real estate market is experiencing a surge in demand, driven by foreign investors seeking affordable properties in a stable and growing economy.

Key regions: United States, China, Japan, Germany, United Kingdom

Market

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Analyst Opinion

The Real Estate market in Paraguay has been experiencing significant growth and development in recent years. Customer preferences have shifted towards investing in real estate as a means of generating income and preserving wealth. This trend is driven by several factors, including the stability of the Paraguayan economy, favorable government policies, and a growing middle class.

Customer preferences: Paraguay's real estate market has seen a rise in demand for both residential and commercial properties. Many individuals and businesses are looking to invest in real estate as a long-term investment strategy. The stability of the Paraguayan economy and the relatively low cost of living compared to other countries in the region make it an attractive destination for real estate investment.

Trends in the market: One of the key trends in the Paraguayan real estate market is the development of gated communities and luxury properties. These properties offer high-quality amenities and security features, catering to the growing demand from affluent buyers. Additionally, there has been an increase in the construction of mixed-use developments, combining residential, commercial, and retail spaces in a single project. This trend reflects the changing needs and preferences of buyers who are looking for convenience and accessibility.

Local special circumstances: Paraguay has a favorable legal framework for foreign investment in real estate. The government has implemented policies to attract foreign investors, including tax incentives and simplified procedures for property acquisition. This has led to an influx of foreign capital into the real estate market, further driving its growth and development.

Underlying macroeconomic factors: The stability of the Paraguayan economy is a key factor contributing to the growth of the real estate market. Paraguay has experienced steady economic growth in recent years, supported by a strong agricultural sector and increasing foreign direct investment. This has resulted in a growing middle class with higher purchasing power, driving demand for residential properties. In conclusion, the Real Estate market in Paraguay is experiencing significant growth and development due to customer preferences for real estate investment, favorable government policies, and a stable economy. The market is witnessing trends such as the development of gated communities and mixed-use projects, catering to the changing needs and preferences of buyers. The local special circumstances, including a favorable legal framework for foreign investment, have attracted foreign capital into the market. The underlying macroeconomic factors, such as steady economic growth and a growing middle class, are also contributing to the market's expansion.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.