Rental Returns in Paraguay: Airbnb, Long-Term Rentals, and Profitability
The Rental yield in Paraguay depends primarily on the total amount invested, the property’s location, the type of rental chosen, and how well it is managed. In Asunción, an apartment listed on Airbnb can generate more gross income than a property rented on an annual basis, but it also involves higher costs and requires more active management.
Actual profitability should therefore never be assessed based solely on the monthly rent or the listed nightly rate. Periods without reservations, platform fees, management costs, cleaning, maintenance, condominium fees, and taxes must also be taken into account.
This page explains how to calculate rental returns in Paraguay, compare Airbnb and long-term rentals, and identify the factors that truly influence the profitability of an apartment in Asunción.
How do you calculate the gross and net rental yields in Paraguay?
Gross Return and Net Return: What's the Difference?
To accurately calculate the rental yield in Paraguay, it is not enough to simply use the percentage listed in a listing or sales presentation. You must distinguish between gross and net yield and factor in all expenses related to the purchase and operation of the property.
The gross yield is calculated based on annual rental income, without deducting expenses.
Net pre-tax income is a more accurate measure. It takes into account expenses directly related to the operation of the property.
A rental yield in Paraguay exceeding 10 % is entirely possible, but this figure should never be presented as guaranteed. Before investing, you should verify the average rate used, the projected occupancy rate, seasonal fluctuations, the included expenses, and the total actual cost incurred.
Two apartments listed at the same price can therefore yield very different results depending on their location, layout, and management style.
Airbnb or Long-Term Rentals: What Are the Rental Returns in Paraguay?
What kind of rental return can you expect from Airbnb in Asunción?
Short-term rentals allow rates to be adjusted based on demand, the length of stay, and peak seasons. In Paraguay, theTourism has increased by 90% over the past two years, they are mainly business travelers or people who come to establish residency.
Platform Fees Management fees must also be factored into the calculation of rental yield.
We handle the management of your Airbnb apartment in Asunción. For more information, please visit our Airbnb management service in Asunción.
When your apartment is in a great location, you’ve purchased it at a good price, and it’s nicely decorated, we can help you achieve a net rental yield of over 9% in Paraguay (management fees included).
What kind of return does long-term rental in Asunción offer?
Long-term rentals are better suited for investors seeking more predictable income and less intensive management. Since the property is occupied for a longer period, the landlord generally has to deal with fewer tenant turnover, fewer housekeeping tasks, and less day-to-day communication.
The average rental yield in Asunción for a long-term rental of a well-located apartment purchased at a good price is 6%.
Which strategy best aligns with your goal?
Airbnb can offer higher earning potential when the property has an excellent location, is well-appointed, and is professionally managed. However, earnings tend to be more variable, as they depend on the number of reservations and the rate charged during each period.
Long-term rentals generally provide a more steady stream of income throughout the term of the contract. They require less time on a day-to-day basis, but offer fewer opportunities to quickly raise rates in response to demand.
The best strategy depends on your goal, your budget, and the characteristics of the property in question. We can compare the income, expenses, and constraints of operating the property as an Airbnb or a long-term rental. To receive an analysis tailored to your project, you can Book a consultation with Aura Capital.
What type of property offers the best rental return in Paraguay?
The type of apartment plays an important role in the Rental yield in Paraguay. However, there is no single type of property that is consistently more profitable: the outcome depends on the purchase price, the neighborhood, the level of maintenance fees, and the profile of the future occupants.
The Studio
A studio apartment can be an affordable way to start investing. The purchase price is often lower than that of a larger apartment, and furnishing it may also require a smaller budget.
This type of accommodation may be suitable for solo travelers, young professionals, and businesspeople on short stays. However, it offers a smaller living space and caters to a more specific clientele. In some apartment complexes with a large number of studio apartments, competition among owners can also be intense.
The one-bedroom apartment
A one-bedroom apartment often offers a good balance between purchase price, comfort, rental demand, and ease of resale. Having a dedicated sleeping area allows for separation between the bedroom and the living room, enhancing the occupants’ comfort.
This type of accommodation may be suitable for couples, expatriates, entrepreneurs, business travelers, and people looking to settle temporarily in Asunción. It may also be more comfortable than a studio apartment for stays lasting several weeks or months.
The two-bedroom apartment
The two-bedroom apartment is ideal for families, roommates, professionals traveling together, or people looking for a place to stay for an extended period.
Its purchase price, furnishings, and condominium fees are generally higher than those for a one-bedroom apartment. It is therefore important to verify that the increase in rent or nightly rate actually offsets the additional cost.
Local expertise, tailored for international investors
Local Presence in Paraguay
Being on the ground allows us to closely monitor market trends, identify relevant opportunities, and support our clients with a practical understanding of the local situation.
A Rigorous Selection Process for Projects
We analyze each opportunity based on specific criteria: location, appreciation potential, the developer’s reputation, rental appeal, and alignment with the client’s strategy.
Support, even from a distance
Many of our clients invest from abroad without being physically present in Paraguay. We have developed a clear support process to make this simple and secure.
A personalized approach
Every investor has different goals: rental income, buying to resell, diversification, moving abroad, or building wealth. We tailor our support to each individual’s profile.
Which neighborhoods in Asunción offer good rental returns?
For short-term rentals, proximity to offices, shopping centers, restaurants, and services is particularly important. The areas around shopping centers are especially attractive.
For long-term rentals, the search can be expanded to include more residential neighborhoods. Budget, the type of housing, the profile of the desired tenant, accessibility, and proximity to schools or services may become more important than being right next to shopping centers.
The choice of neighborhood directly influences rent levels, tenant profiles, rental demand, and resale potential. To help you compare the capital’s main areas, we’ve put together a detailed guide on lThe Real Estate Market and the Neighborhoods of Asunción.
What expenses should be included when calculating rental yield in Paraguay?
A reliable projection must include all expenses that the owner is actually responsible for. The amount of rent or Airbnb income never directly corresponds to the net income received.
Airbnb Rental Expenses
For short-term rentals, the owner must take into account the commissions charged by the platforms and management fees if he or she does not handle the rentals personally.
Electricity, water, and internet charges are generally the responsibility of the owner. You should also plan to restock linens, welcome amenities, dishes, and small items regularly used by guests.
Frequent tenant turnover can accelerate wear and tear on furniture and certain appliances. A budget should therefore be set aside for repairs, equipment replacement, and general maintenance of the property.
Condominium fees, periods without reservations, accounting fees, and taxes must also be deducted before calculating the net return.
The Costs of a Long-Term Lease
Taxes must also be factored into your net profitability calculation. They depend, in particular, on your circumstances, your tax residence, and how the property is managed. We have compiled the key information regarding rental income, taxes, and resale in Our Guide to Real Estate Taxation in Paraguay. We still recommend consulting with a Paraguayan accountant regarding your personal situation.
How Aura Capital Analyzes the Rental Yield of an Apartment in Paraguay
The return on investment advertised by a developer or in a real estate listing is not enough to determine the quality of an investment. Before presenting a property to you, we analyze its overall cost, location, potential rental demand, operating expenses, and resale potential.
The total cost of the investment
We don’t just consider the sale price of the apartment. We also factor in closing costs, the cost of parking, furnishings, appliances, any necessary renovations, and expenses required before the property is first rented out.
This approach helps avoid calculating a rental yield in Paraguay based on an incomplete investment amount. An apartment may seem very profitable when using only its listed price, but yield a much less attractive result after all expenses are factored in.
The neighborhood and the specific location
We analyze the neighborhood as a whole, as well as the project’s immediate surroundings. The proximity of shops, business centers, restaurants, and major thoroughfares can support rental demand.
We also check noise levels, accessibility, nearby buildings, future development plans for the area, and walking options. Just a few blocks’ difference can sometimes make a big difference in an apartment’s appeal.
Housing Types and Rental Demand
We verify that the size, layout, and amenities of the housing unit actually match the profile of the occupants we are seeking.
An apartment may be very attractive, but it may not be very functional or well-suited to the neighborhood’s needs. Conversely, a simpler, well-designed unit may be much easier to rent and resell.
The analysis must therefore take into account the size of the rooms, storage space, natural light, floor level, orientation, balcony, and the amenities offered in the building.
Different Rental Scenarios
When a property can be used in multiple ways, we compare the Airbnb and long-term rental scenarios.
Each estimate is based on specific assumptions regarding revenue, vacancy rates, management fees, commissions, utility usage, maintenance, and operating expenses.
This comparison helps you identify the strategy that best aligns with your goal, without automatically assuming that short-term rentals will always be the most profitable solution.
Resale Potential
An attractive return does not always make up for an excessively high purchase price or a property type that is difficult to resell.
We therefore also take into account the price per square meter, the developer’s reputation, the number of similar units in the complex, the neighborhood’s development, future competition, and the profile of buyers likely to be interested in the property.
Ideally, an apartment should be rentable under favorable terms while remaining attractive enough to be resold when the investor wishes to exit the investment.
We select and analyze real estate projects based on their location, price, potential rental demand, operating costs, and ease of resale. You can learn more about Real estate projects currently offered by Aura Capital in order to identify the assets that best align with your strategy.
You don’t need to be in Paraguay for every step of your investment. We can assist you remotely with property selection, video conference tours, due diligence, reservation, signing, and project follow-up. Learn more How to Invest in Paraguay from Abroad.
Would you like to compare several apartments or get a more accurate estimate of their potential profitability?
We can review your budget, your goals, your projected expenses, and various rental scenarios. Please share your project with us.
FAQ – Rental Yield in Paraguay
Rental yields in Paraguay depend primarily on the neighborhood, the type of property, and the chosen management approach.
In the best Airbnb listings in Asunción, it’s possible to achieve a net return of over 10 % when the property is properly selected and managed.
With long-term leases, returns are generally more moderate but offer greater stability.
The most sought-after areas are located around Las Lomas, Shopping del Sol, Paseo La Galería, and the World Trade Center.
These neighborhoods see high demand from business travelers, expatriates, and international professionals.
Recoleta and Villa Morra—particularly the area around Shopping Mariscal—are also among the top-performing neighborhoods for short-term rentals.
One-bedroom apartments generally offer the best balance between return on investment, rental demand, and resale liquidity.
They are ideal for expats, couples, business travelers, and Airbnb guests alike.
Studios appeal to a more limited clientele, while larger apartments are often harder to rent and resell.
In most cases, yes.
When located in the right neighborhood and properly managed, an apartment listed on Airbnb generally generates a higher return than one rented out on a long-term basis.
This difference in performance is mainly due to higher daily rental rates and sustained demand in certain areas of Asunción.
The return depends directly on the occupancy rate of the dwelling.
Effective management helps optimize rates, improve listing visibility, reduce vacancy periods, and enhance the traveler experience.
Two identical apartments can yield very different results depending on how well they are managed.
Long-term rentals allow you to expand your choice of neighborhoods.
Residential areas such as Herrera, Mburucuyá, certain parts of Luque, and other areas of Greater Asunción may offer a good balance between purchase prices and rental demand.
The goal, then, is income stability rather than maximizing returns.
The gross yield allows you to quickly compare several properties, but it does not reflect the actual profitability of an investment.
Management fees, taxes, operating expenses, and rental vacancies must be taken into account when calculating the net return.
It is the latter that makes it possible to accurately assess the performance of a real estate investment.
Paraguay's tax system remains competitive for real estate investors.
Rental income is generally taxed at 10 % on the profit after deducting allowable expenses.
Property taxes also remain low, which allows you to retain a significant portion of the income generated by the property.
Yes.
Many international investors purchase real estate in Asunción without living there.
Support, property selection, and the quality of management are therefore essential factors in securing the investment and maximizing its profitability.
The best investments generally combine both.
A good rental yield generates steady income, while the property's appreciation helps build long-term wealth.
The goal is to find an asset that meets both of these criteria at the same time.
Schedule a call with Aura Capital
Are you interested in investing in real estate in Paraguay, comparing different options, or scheduling a meeting with our team?
Contact us so we can assist you.
Aura Capital
Real estate agency specializing in real estate investment in Paraguay
Guido Boggiani Avenue, San Cristóbal neighborhood
Asunción, Paraguay
In-person or remote meetings
- contact@auracapital.com.py
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