Airbnb Yields in Paraguay: Leaders, Laggards, and Risks for Investors

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Paraguay maintains a low level of regulation in the short-term rental market, notes an AirROI study. Demand in the Airbnb segment is generated by 14 cities, and in most of them analysts record low occupancy and high seasonality. Nightly rates range from $35 to $193, while monthly revenue varies from $174 to $711.

Asunción is the country’s largest short-term rental market, with 1,319 active listings. The average nightly rate is about $50, monthly income stands at $601, and occupancy is 48.4%. Despite the scale, booking activity remains moderate, resulting in uneven income distribution throughout the year.

San Bernardino ranks second by market size, with 239 listings. Rental rates here are significantly higher, reaching $193 — the highest figure in the sample. Monthly revenue is also the highest at $712. However, occupancy does not exceed 20.6%, making the market heavily dependent on seasonal demand spikes.

Encarnación takes third place with 224 listings. At a nightly rate of $73, occupancy is only 24.9%, and income amounts to $340. The high tariff is not supported by comparable demand: in more affordable cities, indicators are often stronger.

Ciudad del Este ranks fourth with 180 listings. Rental prices are noticeably lower at around $49, but occupancy reaches 36.7%. Thanks to more frequent bookings, income ($375) exceeds that of Encarnación despite the price gap.

The next group of listings in Asunción (169) demonstrates a different model: the average price is $52, occupancy is 42.5% — one of the strongest results in the sample. Income ($338) is comparable to that of more expensive cities, showing that within the capital segment demand is distributed more evenly and is less exposed to seasonality.

In Luque (132 listings), at a rate of $45 occupancy reaches 30.8%, higher than in several locations with higher prices. Revenue of $279 is below capital levels, but the market appears predictable: demand fluctuations here are weaker than in tourist areas.

Fernando de la Mora (52) is a small market, but it stands out in terms of combined metrics. At a price of $36, occupancy rises to 40.7%, and income reaches $309: the low rate is offset by stable bookings.

In San Lorenzo (42), the rate is $47, income is $312 with 38% occupancy. Mariano Roque Alonso (41) mirrors the general suburban pattern: $49 per night, $306 per month, and 33% occupancy. Indicators here are more stable than in tourist locations but lag behind neighboring suburbs, forming a neutral investment picture.

Ypacaraí has 34 listings and one of the highest rates — $128 — but occupancy is only 22.2%. Income of $409 is generated by infrequent periods of elevated demand, making the market one of the most volatile. Areguá belongs to the high-price, low-occupancy group: a $119 rate brings in $376 with rare bookings. Villarrica shows the weakest results in the sample — $59 per night yields just $175 with 17.8% occupancy. Lambaré operates in the mid-price segment: $71 generates $242 amid uneven demand. In Paraguarí, a nightly rate of $106 delivers $420 per month, but occupancy remains among the lowest at 18.9%.



Foreigners are allowed to purchase property in Paraguay: the restriction applies only to land plots in border zones. The transaction process includes:

a municipal transfer tax — about 0.3–0.5% of the cadastral value;

notary fees — 0.8%;

registration in the state registry — 0.8%.

In total, acquisition costs usually amount to 2–3% of the property price. The annual property tax is 0.3–0.5% of the cadastral value. When selling property, non-residents pay about 6% of the transaction value; for residents, the rate is lower due to a different capital gains calculation. Rental income is subject to the territorial principle: foreigners pay 15% on 50% of gross income, which corresponds to an effective rate of about 7.5%. Residential leasing is exempt from VAT.

According to Numbeo, the average gross yield in Paraguay stands at 5.01–5.76%. After costs, net profitability is usually several points lower — around 3–4%, and may decline further during vacancy periods. In Asunción, a headline yield of 5.36–6.34% translates into an actual 3.36–4.34%. In Encarnación, yields of 4.50–4.79% become a real 2.50–2.79%.



Analysts at International Investment note that yields for individual assets may be higher, but overall Paraguay’s investment climate in 2025 remains uneven. Despite macroeconomic stability, significant institutional and structural risks persist. Key vulnerabilities are linked to the quality of public governance, high levels of corruption, and the limited effectiveness of the judicial system, which complicate investor rights protection and slow project implementation. The economy remains dependent on commodity exports and hydropower, making it exposed to external price and climate shocks. Additional risk factors include weak infrastructure and social protests reflecting dissatisfaction with inequality and the political system.