To successfully invest in the Paraguayan real estate market, it is essential to have precise information about how it operates locally, as there is no one-size-fits-all formula applicable to all contexts, according to Raúl Constantino, president of the Paraguayan Chamber of Real Estate Developers (Capadei). In an interview for the program "Ellos saben," he emphasized that importing models that were successful in other countries, without considering Paraguay's particularities, may not yield good results.
Constantino listed key points for investors. The first is to master the current legislation regulating real estate development and to ensure a solid financial flow to guarantee project viability. For foreigners, it is crucial to understand the market size and the behavior of supply and demand, in addition to learning about the government's economic policy and the state of mortgage credit in the country.
The sector faces challenges such as a lack of predictability in municipal ordinances, deficient infrastructure, scarce mortgage credit, and an increase in supply that does not take real demand into account. Despite this, the market has proven to be diversified, with options for all types of buyers and investors, which contributes to more balanced growth.
Before investing, it is essential to verify the developer's reliability, track record, and financial solidity. It is also important to analyze the land's situation, checking for any restrictions or liens, and to ensure the price is in line with the market, considering the location and construction quality. Neglecting this information, according to Constantino, is a common mistake.