Housing credit reaches USD 1.737 billion in May and is now equivalent to 3.52% of GDP

Housing finance continues to expand in Paraguay, reaching a new all-time high. While some of the increase measured in dollars is due to the appreciation of the guaraní against the US dollar, the growth in local currency confirms that the market maintains a strong expansion.

The Paraguayan mortgage market continues to deepen its development. As of the end of May 2026, the total outstanding balance of housing loans granted by banks and financial institutions reached G. 10.55 trillion, the highest level recorded to date, according to data from the Central Bank of Paraguay (BCP).

Of the total, G. 10.33 trillion corresponds to banks and G. 222,337 million to financial institutions, consolidating a growth trend that has been accelerating in recent years and that accompanies the expansion of the Paraguayan residential market.

Expressed at the official BCP exchange rate of G. 6,074.88 per dollar, the stock of housing credit is equivalent to approximately USD 1,737 million.

The growth in housing credit was driven primarily by banks, which accounted for 97.9% of the total outstanding balance in the financial system. Finance companies, on the other hand, represented 2.1% of the market.

However, it was precisely the finance companies that registered the greatest relative expansion during the period. Between December 2025 and May 2026, their housing loan portfolio grew from G. 73,001 million to G. 222,337 million, representing growth of nearly 205%. During the same period, banks increased their portfolio from G. 9.46 trillion to G. 10.33 trillion, equivalent to a 9.2% increase. While the volume remains largely concentrated in traditional banking, the evolution of finance companies reflects a greater participation of these entities in a segment that has historically been dominated almost exclusively by banks.

Taking as a reference Paraguay's nominal GDP estimated by the World Bank for 2025, of USD 49.28 billion, financing destined for housing represents approximately 3.52% of the gross domestic product, a new high for the Paraguayan financial system and a sign of the gradual process of deepening mortgage credit.

The figure also shows a significant advance compared to December 2025. At that time, the combined balance of banks and financial institutions amounted to G. 9.53 trillion, while five months later it exceeds G. 10.55 trillion, representing an increase of G. 1.02 trillion, equivalent to a growth of 10.7% in local currency.

Measured in dollars, the increase is even more significant. The balance rose from approximately USD 1.447 billion at the end of 2025 to USD 1.737 billion in May of this year, an increase of nearly 20%.

However, the difference between the two percentages is not solely due to increased lending. During the first months of 2026, the guaraní appreciated against the dollar, reducing the exchange rate from levels close to 6,585 guaraníes per dollar used for the December figures to 6,074.88 guaraníes in May. As a result, the same amount expressed in guaraníes now represents a larger amount of dollars.

In other words, part of the growth measured in dollars reflects the exchange rate effect and not solely an increase in credit. However, even eliminating that factor, the expansion of financing remains significant, as the 10.7% growth in guaraníes in just five months demonstrates that demand for housing credit remains strong.

This evolution also confirms a structural trend observed in recent years: the Paraguayan real estate market is increasingly dependent on a financial system with a greater capacity to channel resources toward housing. As the weight of mortgage lending within the economy increases, so does the ability of households to access housing through long-term financing and the ability of developers to sustain a residential market with an ever-expanding buyer base.

Although the level of 3.52% of GDP is still considerably lower than that observed in economies with more developed mortgage markets, recent trends show a sustained process of financial inclusion and deepening. In a context of macroeconomic stability, controlled inflation, and greater competition among financial institutions, housing credit continues to consolidate its position as one of the main drivers of growth in the Paraguayan real estate market.