Affordable Investment in Paraguay: Airbnb Studio Apartments in Asuncion
For over four years, my partner Alexandra and I have been traveling through South America, comparing investment opportunities. We originally started our search in Asunción, but we quickly realized that affordable urban real estate (under $1,000 per square meter) is hard to find. At some point, we gave up looking for investment opportunities there and started exploring other countries.
What surprises many when they arrive in Paraguay’s capital, Asunción, is that living there can be expensive—especially if you expect Western standards. When we toured apartments in 2022, we were shocked by the high prices—$200,000 for a two-bedroom-apartment was not unusual.
During our years of traveling, the only place we found real estate under $1,000 per square meter was Cali, Colombia. However, Colombia has more complicated immigration requirements, while Asunción and Paraguay, in general, are much more attractive for foreign investors.
Returning to Asunción
That’s why, during our recent return to Paraguay, we were intrigued to discover a new concept: small, affordable studio apartments designed for locals, commuters, and students—while also offering potential for Airbnb rentals. An interesting idea that made us consider whether it could be a good fit for us.
I have compiled the information I have found so far. Here is an overview:
Park Lofts Recoleta
| Category | Details |
|---|---|
| Location | In the upscale Recoleta district, 5 minutes from Shopping Mariscal & “La Cuadrita.” Suitable for tourists & professionals. |
| Construction Start | March 2025 (Completion: March 2026) |
| Building | 10 floors, 90 studio apartments |
| Amenities | Pool, gym, sundeck, co-working space, BBQ area, 2 elevators |
| Apartment Sizes | 22–32 m² / 236–344 sq. ft.(depending on balcony size) |
| Pre-sale Prices | Small balcony: from $34,500 Large balcony: from $36,500 |
| Parking Spots | 12 available, $9,000 each |
| Storage Units | 7 available (0.8 m × 0.93 m / 2.6 × 3.1 feet), $4,000 each |
| Estimated Rental Income | Long-term rental: 3,000,000 Gs (approx. $380 per month) Airbnb: $600–800 per month |
| Target Audience | Ideal for commuters, students, and Airbnb rentals. |
(All information is subject to change.)
Investing in Paraguay?
It came as a surprise to us: In almost every major city in South America, real estate prices were unrealistically high, and affordable projects seemed nearly impossible to find. But suddenly, during our return to Paraguay in 2024, we discovered new real estate developments. A closer look revealed that they were being developed by a German company. That piqued our interest—we started looking into it, and I want to share what they offer so you can get a clear picture as well.
1. Lowest Prices for New Builds in Asunción
According to the platform InfoCasas, Park Lofts offers the best prices for newly built apartments in the city, with studios starting at $34,500. This makes them an attractive option for first-time investors like us who are looking to enter the real estate market, as well as for experienced investors wanting to expand their portfolio in a growing market.
2. New Concept – Little Competition
So far, this concept has almost no competition, as most residential buildings in Asunción are priced well above average. Although there is a lot of construction happening in the city, most projects focus on larger, more expensive apartments. Park Lofts, on the other hand, deliberately targets a gap in the market by offering compact studio apartments between 20–30 m² (215–323 ft²):
- These apartments are designed for young people looking for modern, functional living spaces at an affordable price.
- In Paraguay, the concept of having roommates doesn’t really exist—mainly due to safety concerns, financial uncertainty (e.g., whether roommates will reliably pay), and the question of who takes legal responsibility as the main tenant. Because of this, students who can afford it prefer to rent their own small apartments—especially Brazilian medical students who couldn’t meet the entrance requirements in their home country and choose to study in Paraguay instead.
- At the same time, these studios are ideal for Airbnb rentals, as travelers and business professionals are increasingly looking for smaller, budget-friendly alternatives to hotels.
Thanks to this niche strategy, Park Lofts appears to have almost no direct competition. There are very few projects in Asunción offering apartments of this size and price range. That will likely change over time as more developers recognize the potential, but for now, we have found very few affordable projects with a similar concept.
3. High Demand and Secure Rental Income
One of the most important questions for us was: How secure is the rental income?
What immediately stands out is the daily commuter traffic in Asunción—around 1,000,000 people—creating a massive demand for centrally located housing.
This demand is further reinforced by the following groups:
- Brazilian medical students
- Employees in the pharmaceutical and service industries
- Airbnb travelers, tourists, and young professionals
As a result, both long-term rentals and short-term Airbnb rentals offer solid income opportunities. I’ll compare the different rental options and conditions further below.
A Strategically Designed Concept
Park Lofts has been specifically developed to meet the needs of Paraguay’s growing young population:
- The average age in Paraguay is just 27 years.
- Young professionals, students, and commuters are increasingly looking for affordable, modern housing in central locations.
- Airbnb guests prefer compact, well-equipped studios as an alternative to expensive hotels.
The interior design of Park Lofts looks modern—this can be seen in the virtual tour. To furnish the apartments, Park Lofts plans to offer two furniture packages: a budget version and a more upscale version, priced between $1,500–$2,000.
4. Attractive Returns
Park Lofts offers not only a modern living concept but also a promising return in this virtually untapped market. Thanks to this strategic focus, they predict a future-proof investment – all in one of the most economically dynamic countries in South America.
What can you expect?
The studios combine the lowest prices in Asunción with a well-thought-out concept that enables high rental income:
- Long-term rentals: Stable income from commuters, medical students, and young professionals.
- Airbnb: Due to its proximity to shopping centers, universities, and workplaces, the apartments achieve high occupancy rates – a great budget-friendly hotel alternative. Expected monthly earnings range from $500 to $800, depending on the property.
- This seems like the best return on the market, as the low entry prices provide above-average capital returns.
Perfect for Commuters & Short-term Renters
Asunción sees around 1,000,000 commuters daily, all seeking housing in central locations. Airbnb analyses confirm that this price range and central locations yield above-average returns. So, is there a catch?
5. Management of Asunción Apartments: Everything from One Source
What has always been important to us: an investment that requires no extra work. Park Lofts seems to offer this solution, as they promise that a competent team will handle everything.
The following terms apply to this comprehensive management service:
- Long-term rentals: 10% of rental income
- Airbnb management: 15% of rental income (including listing, guest management, cleaning, etc.)
- English/German/Spanish-speaking team on-site: Your investment stays secure and straightforward
Tax Processing
Anyone earning income in Paraguay must pay taxes locally. Here, Park Lofts also offers a solution:
- Tax consulting: from $20 to $50 per month (depending on billing volume)
- Special offer: When purchasing three or more apartments, one year of tax consulting is free
6. Experienced Team in Asunción and Security
How secure is Park Lofts? And who is behind it?
- Robin Loths is the president of the company.
- Julian Sandt is the main investor and partner at Park Lofts. One of his recent successful projects was the 22-story Palmanova Tower in the Las Mercedes district, one of the prime locations in the historic center of Asunción.
- The main investor not only acquired the land for Park Lofts but also deposited $1,200,000 in guarantees in the form of land. This is to provide financial security for investors and make entry easier.
Conclusion: A Well-Thought-Out Concept with Potential?
Park Lofts is undoubtedly an innovative idea that aligns well with our needs. For a permanent residence, the studio apartments would be too small for us personally, but as a flexible solution for shorter stays, they are ideal. If we visit Asunción once or twice a year, we could block the Airbnb calendar for that time and use the apartment and parking space ourselves. So, we can use the apartments during our stay in Paraguay and easily rent them out through the team for the rest of the year.
Asunción is one of the fastest-growing cities in South America, and it’s exciting to see modern, forward-looking projects being developed here – not only for foreign investors but also for the local population.
Do you have any questions about this project in Asunción?
If you have any questions or want to learn more about our experiences with Park Lofts and the investment opportunities locally, feel free to schedule a free, no-obligation call with me.
Alexandra and I are happy to share our experiences with others, talking about how we’ve settled in Paraguay (visas, residency permits, car purchase, real estate and property viewings, etc.) Read some of my clients’ reviews to decide if you want my support.
I look forward to your questions!
Paul Trausner
Lived on 4 continents and visited 60+ countries
Specializes in expat consultation for Latin America,
including residency coaching, US LLC formation, and tax optimization strategies
DISCOVER all about Paraguay on my Youtube Channel:
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Legal disclaimer:
This content is for informational purposes only and does not constitute professional, legal, or medical advice. The author is not a legal, financial, or medical professional.
