Che Róga Porã 2.0 Centro Would Be Launched in December with the Intention of Repopulating the Microcenter of Asunción

A special version of the program would allow for greater access to housing in central areas, complementing tax incentives and the revitalization plan for the historic center.

The government is preparing a strategic shift in its housing and urban policy: the launch of Che Róga Porã 2.0 – Centro, a program designed exclusively for the city of Asunción, with a clear and long-postponed objective: to attract families back to the capital, facilitate access to well-located housing, and support the revitalization of the historic center. The announcement was made by the Minister of Urban Development, Housing and Habitat (MUVH), Juan Carlos Baruja.

The most visible element of this new version of the program is the increase in the financing cap, which will rise from the current ₲608–609 million to approximately ₲700 million per family. The minister announced that the measure will be formalized no later than December, as part of a package of policies focused exclusively on Asunción. The decision responds to a structural market reality: the cost of land and the availability of housing in the capital has historically excluded thousands of families who qualified for the program but could not afford the prices in the city center and established neighborhoods.

Baruja explained that the government's intention is "to encourage people to choose more urbanized cities," highlighting that Asunción, Fernando de la Mora, and Luque offer a concentration of services, road infrastructure, public transportation, and amenities that reduce the cost of living and improve urban quality. However, Asunción faces an additional challenge: the progressive depopulation of its historic center, a decades-long process that the government is now seeking to reverse through tax incentives, new housing projects, and a pilot social rental program.

The 2.0 version of the Che Róga Porã Center is not an isolated initiative. It is part of a broader agenda promoted by the Office of the First Lady of the Nation and the Municipality of Asunción, which includes a reduction in property taxes in the city center starting in January 2026, a measure already approved by the Municipal Council. This tax policy represents one of the most direct and tangible incentives for attracting residential real estate developments, and it is already beginning to show its first effects: in December, a developer will begin construction on an apartment tower located just three or four blocks from the Port of Asunción, which, if its construction is confirmed, could become a catalyst for new investments in the area.

The government aims to expand this type of project. The minister stated that the program is designed to "enable more families to move into and access the city and its services," emphasizing that the city center is one of the areas where urban infrastructure is already in place: established streets, transportation networks, proximity to public institutions and educational establishments, and a cultural and commercial offering that, although weakened in recent decades, maintains significant urban potential.

One of the most relevant, and perhaps least discussed so far, announcements is the preparation of a social rental system, which will be included in the 2026 budget. The proposal consists of granting a direct subsidy to families who decide to live in the center of Asunción, a model used in cities in the region to reoccupy strategic urban areas and avoid peripheral expansion.

Although the technical details are not yet known, its inclusion in the budget policy indicates that the Government seeks to combine buying and renting within the same programmatic umbrella, reinforcing the idea that repopulating the center is a national priority.

In terms of scope, Che Róga Porã 2.0 Centro will rely on the initial USD 100 million available, enough, according to the minister, to finance approximately 4,000 housing solutions. However, the Ministry of Urban Development and Housing (MUVH) and the Development Finance Agency (AFD) are already managing additional lines of credit to double or even triple the program's capacity, reaching between 8,000 and 10,000 homes. If implemented, this would represent the largest urban housing policy effort of the last decade.

The program maintains its general conditions: rates starting at 6.5%, terms of up to 30 years, and availability through all participating financial institutions. Loans for expanding or completing existing homes also continue to be available.

Beyond the appeal of the incentives and the expansion of the financing cap, a key question remains for the real estate sector: are citizens ready to take on long-term debt and adopt mortgage credit as a regular mechanism?

For decades, the lack of mortgage credit was one of the biggest shortcomings of the Paraguayan real estate market. Now that a robust financial tool finally exists, the question shifts to demand: Will there be enough economic confidence and family stability to take out 20- or 30-year loans? Will the investment culture and preference for cash purchases or off-plan units continue to prevail?

The performance of Che Róga Porã 2.0 Centro during 2026 will be decisive in measuring whether the Paraguayan mortgage market is ready to mature.

The launch of this urban version of the program marks a pivotal moment. If it can be successfully integrated with the Ministry of Public Works and Communications' projects in the Historic Center, the roadmap of the "Asunción 500 Years" Commission , and the reduction in property taxes, it could signify the beginning of a repopulation cycle that alters the real estate dynamics of the capital, driving not only new developments but also increased demand in surrounding neighborhoods, commercial revitalization, and a more efficient use of existing urban infrastructure.

Asunción, a city with decades of demographic stagnation, could finally enter a new cycle where living in the capital becomes an accessible aspiration once again, rather than a privilege restricted by the price of land.