Interest in properties in the Historic Center of Asunción is increasing

Cristina Aquino and Florencia Gismondi, advisors at C21 Wilson-Chihan, analyze the renewed dynamism of the Historic Center and share a view from direct experience on how private interest, tax incentives and public policies are beginning to transform the heart of the capital.

For decades, Asunción's Historic Center was a territory suspended between memory and oblivion. The epicenter of the country's political, cultural, and commercial life for much of the 20th century, the area gradually lost its vitality as development centers shifted to Recoleta, Villa Morra, Carmelitas, Las Lomas, and the new hubs of the corporate district. However, in the last year, the narrative has begun to change. The combination of still-competitive prices, tax incentives, new public and private projects, and the arrival of investors with a long-term vision is restoring prominence to a sector that holds a significant portion of the capital's architectural and symbolic heritage.

The movement isn't massive, but it is consistent. Agents who work regularly in the area report a steady increase in inquiries, visits, and closed deals for properties with heritage value, as well as greater interest in strategic corner locations and buildings with redevelopment potential. The buyer profile is becoming increasingly defined: foreigners from Europe, North America, and Oceania, as well as Paraguayans who have lived abroad and recognize the city center as an investment opportunity with historical, cultural, and financial significance. This group seeks properties with character, original facades, and architectural elements that preserve the essence of old Asunción, while also valuing the possibility of integrating them into contemporary projects such as boutique hotels, aparthotels, restaurants, or short-term rental units.

The sale of recently restored historic mansions, such as Casa Alegra, managed by Florencia Gismondi, demonstrates how a well-structured strategy can translate into concrete results. In this case, the property, completely renovated but preserving over ninety percent of its original materials, sold in just two days, following a market analysis that aligned its price with the actual range buyers are paying per square meter in the area. These types of transactions show that when the price is competitive and the property is well-positioned, demand responds quickly, even in a market that has lagged behind for years.

Today, according to surveys by real estate agents, land prices in the Historic Center range from $230 to $330 per square meter, depending on the location. These levels are significantly lower than in areas like Villa Morra or Ykua Satî, but with projected appreciation as the urban revitalization process progresses. In this regard, one of the main challenges remains the gap between the list price and the actual selling price. Properties offered well above the market range tend to remain unsold for years, while those priced at their true value find buyers willing to close deals quickly.

The cost of restoring a heritage house is high, especially when original features and period construction techniques are preserved. However, this type of investment attracts a type of buyer who seeks not only profitability but also a sense of identity. In many cases, these are internationally experienced individuals interested in living in or repurposing spaces that convey history and authenticity.

Meanwhile, recent trends also include the purchase of older buildings and corner properties for temporary housing or small-scale developments, a segment in which Cristina Aquino has completed several significant transactions in recent years. The scarcity of modern apartments in the city center presents a clear opportunity for investors who can offer affordable units geared toward public employees, young professionals, or students who work or study in the area. According to estimates from local agents, more than six thousand people enter and leave the historic center daily for work, but the housing supply is virtually nonexistent. Consequently, projects that combine restoration and new construction can find a profitable niche with a strong urban impact.

Buyer interest is bolstered by the new regulatory environment. The Municipality of Asunción has approved a historic property tax reduction of up to 52 percent for properties located within the perimeter of the Historic Center that preserve or restore their original facades. The measure, which covers approximately 685 hectares, represents a structural shift in the capital's urban policy and seeks to incentivize private investment in an area where maintenance costs are high and tax burdens have discouraged heritage restoration for years. This tax benefit is already in effect and is one of the most important drivers for the revitalization of the central area, replicating strategies that have proven successful in other Latin American capitals, where architectural preservation has become a catalyst for new urban and tourism developments.

Alongside these incentives, public interventions, though slow, are beginning to take effect. The Inter-American Development Bank loan earmarked for the revitalization of the historic center, the underground wiring and sidewalk improvement plans spearheaded by the First Lady's Office, and the collaboration between the Secretariat of Culture and the Ministry of Public Works in the restoration of museums and emblematic buildings are all part of a broader urban renewal process. The private sector is also starting to play a leading role, with initiatives around the Port of Asunción and the riverfront promenade led by developers like G5Pro, who plan to transform former industrial areas into new hubs for housing, culture, and entertainment.

Some real estate developers are also actively searching for land within the historic center, especially for vertical development projects. In recent weeks, there have been acquisitions of large properties by major private groups who recognize not only the appeal of the new tax scheme but also the boost generated by public investments in infrastructure, urban revitalization, and the restoration of architectural heritage. The private sector, both local and foreign, is thus beginning to strategically position itself in the heart of the capital, anticipating a gradual revaluation of the central area that could solidify in the coming years.

Despite renewed interest, the city center still faces structural challenges. Street cleanliness remains a recurring concern for residents and businesses. While new containers and collection systems have been implemented, a lack of civic awareness and insufficient coordination between authorities and residents hinder sustainable results. A perception of insecurity also persists, especially in areas where the police presence, far from providing reassurance, reinforces the feeling of risk. However, those who live or work downtown agree that urban life has visibly improved, particularly on weekends, when the streets are filled with families, cultural events, and food activities.

The investment equation in Asunción's Historic Center combines economic, heritage, and emotional variables. On the one hand, the market offers prices that are still low compared to the rest of the city and acquisition opportunities in prime locations. On the other hand, the restoration of heritage buildings provides access to a scarce type of asset with symbolic and cultural value that is difficult to replicate. Added to this is a public policy environment geared toward revitalization and a global trend toward reclaiming historic centers as spaces of identity, tourism, and urban life.

If regulatory, infrastructure, and security conditions continue to improve, the city center could solidify its position as one of the capital's most dynamic sectors within the next three to five years. For developers with the capacity for architectural intervention, for investors with a medium-term vision, and for citizens seeking to reconnect with Asunción's living history, the time to once again look to the heart of the city seems to have arrived. The Historic Center, with its blend of past and future, is re-emerging as a land of opportunity, where urban memory can be transformed into economic value and where the beauty of the old is once again synonymous with the future.