Real Estate Market of Paraguay

27.10.2009 14:10
About Paraguay rarely write in the press. Not to say also that the country is popular with tourists: travelers tend to "slips" past her on their way to neighboring countries. However, this is the "unpopularity" and attracts a certain category of foreign property buyers and investors.
"People come here in search of low prices, good life, a great environment and wonderful climate" - says Michael Forrest, a member of a local consulting company Propriedades MEGA SRL, which provides assistance to foreigners who have decided to buy property in Paraguay.

Some investors buy residential property in Paraguay, some to invest in agricultural land. "Approximately 50% of all buyers of land - the foreigners," - said Pier Voss, owner of the site, which specializes in the sale of this type of real estate in the region.

A cursory glance at Paraguay

The state is named for the river Paraguay, which flows from north to south and divides the country into two parts. The country is bordered by Bolivia, Brazil and Argentina. Here is one of the largest hydropower plant in the world - Itaipu. Exit to the ocean in Paraguay, unfortunately, no.

According to the World Factbook, almanac, a guide to all the countries of the world, Paraguay is home to around 6.9 million people. The bulk of the population is concentrated in the southern part of the country. The scenery here is quite rich, and the climate varies from temperate to subtropical. Eastern Paraguay drops a lot of rain, while the western part of the country rather arid. The landscape of the state - is plain, hills and forests, and many marshes.

Before the Spanish colonization of the country inhabited a few valiant South American tribes, whose descendants still live in today Paraguay. The capital, Asunci?n, was founded in 1537 by Spanish conquerors. Paraguay gained independence from Spain in 1811.

The recent history of Paraguay - is basically the war and political chaos. According to research the Library of Congress, just over fifty years in the period between 1904 and 1954, the country's president was replaced in 1931. In 1954, Alfredo Stroessner seized power Matiauda, ??who held it for 35 years. After he was overthrown in Paraguay established a relatively stable democracy.

According to the World Factbook, the Paraguayan economy is largely dependent on the service sector, agriculture and small businesses. Sustained economic growth of the state hampered by the lack of transparency, lack of infrastructure and political instability.

The share of service sector accounts for about 58,2% of GDP, agriculture and industry make up 23.4% and 18.4% respectively. The lion's share of the population of Paraguay in the service sector - 52%, while in the field of agriculture and industry is working 31% and 17% respectively. Growth in global demand for raw materials concelebrated Paraguay in good stead and ensured the stable development of the state's economy.

Residential Real Estate Paraguay

Despite the global financial crisis, house prices in Paraguay are held at a stable level, says Peer Voss, and compared with other countries in the region are very low. For those adventurers who are not interested in popular areas with inflated housing prices, Paraguay fits just perfectly. It is worth noting that Asuncion is one of the cheapest cities in the world.

"In recent years property prices in the region rose slightly, but local housing is still very cheap" - says Forrest - Flats area of ??100 square meters. m worth only about $ 40 thousand square meter price of housing in Asuncion, usually around $ 500-600.

Agricultural land in Paraguay

According to the Feast of Voss, on a peak in mid-2008 the cost of the Paraguayan agricultural property has declined by about 20%. The market has not rebounded to the level of 2008, but prices have stabilized. "In the western part of the country can still buy huge tracts of virgin forest on very fertile soil for only $ 100 per hectare", - says the expert.

Buying Property in Paraguay

There are no restrictions on foreigners buying real estate in Paraguay there. "Legally there is almost no difference between nationals and foreigners Paraguay - Peer Voss said. - They can do business without restrictions. " Income tax here - vsego10%, the same rate of VAT.

Before you buy property in Paraguay, the buyers are urged to conduct a thorough check of the object. The fact that the system of acquiring local real estate rather corrupt. "It is often possible to meet the fake bills of sale - the documents that give ownership, but local notaries quite competent: they are able to undertake the necessary testing and its results can be trusted," - said Pier Voss. In Paraguay, there is even a separate office of the so-called escribanos, their task is to check the bills of sale for the presence of any problems.

Looking to the future

Paraguayan housing market will likely remain stable, of course, if the global economy will not happen next dramatic collapse. Skillfully cultivated farmland remain relatively scarce commodity. "Prices for this type of real estate will continue to grow by an average of 5% per year, adjusted for inflation, says Pir Voss. - Uncultivated and unimproved land is now worth a little surprising, suggesting that in the next three years, their price is at least double. " This may sound overly optimistic, however, may be precisely this optimism is not enough for foreign investors, who for some reason has not yet filled the promising market of the South American country.

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