Paraguay is no longer the cheapest country in South America, according to the Cost of Living Index from the Numbeo platform, which compares prices of goods and services relative to New York (reference of 100 points). In mid-2026, the country registered 31.99 points, an increase of 40.18% compared to the previous year, when it scored 22.82 points and occupied the last position among South American nations.
With the increase, Paraguay became the third cheapest in the region, behind only Bolivia (28.74 points) and Ecuador (31.04). The gap to neighbors like Peru (32.51) and Brazil (33.08) shrank to less than 1.1 points, while the difference to Uruguay, the leader in cost of living in the region with 54 points, fell to 22 points. The index considers spending on food, transportation, fuels, basic services, and leisure, but excludes rents and real estate financing.
Despite the loss of relative competitiveness, the country was recognized as the second-best destination to settle in South America, according to the Global Relocation Index by the consulting firm Rumavi. In the global ranking, which evaluated 192 countries based on financial stability, quality of life, security, and opportunities for migrants, Paraguay placed 44th, with 66.5 points, behind only Uruguay (35th) in the region.
The country's highest score was in the financial area (80 points), driven by banking infrastructure, economic stability, and a favorable tax system. In security and stability, it reached 57 points, while in opportunities for foreigners it obtained 54, considering factors such as digital infrastructure and protection of property rights. The study notes that the index adjusts weights according to the migrant's profile, such as digital nomads or families.
While Paraguay gains prominence in international rankings, the Buenos Aires real estate market shows growing disparities between new and used properties. According to the Zonaprop platform, the square meter of a brand-new apartment costs, on average, 32.6% more than a used one, but the difference varies drastically by neighborhood. In Monserrat, the price of a new property can be up to 111.3% higher than a second-hand one, while in Puerto Madero the gap does not exceed 10%.
The increase in construction costs, combined with land appreciation, explains part of the disparity. "Today, a new property costs between 15% and 30% more than a used one, mainly because of construction costs in recent years," said Sebastián Sosa, president of RE/MAX Argentina and Uruguay. Still, older units continue to attract buyers by offering larger spaces and better construction quality.
The resumption of mortgage credit has also begun to influence the market. In Caballito, about 80% of used property sales are closed with financing, according to Alejandra González, CEO of the real estate firm Justevila. "Buyers can pay over 10 or 20 years, something that construction companies do not offer," she explained. The preference for smaller apartments, such as those with two or three rooms, has also grown in recent months.