Paraguay Leads Global Tourism Growth: Opportunities for the Real Estate Market

Paraguay will lead global tourism growth in the first quarter of 2025, opening up new opportunities for the real estate market and infrastructure development.

In a global context of recovery and reconfiguration of tourism flows, Paraguay emerges as one of the most notable surprises of the first quarter of 2025. According to the latest data published by UN Tourism, the country leads the world ranking of growth in international tourist arrivals, with a year-on-year increase of 53% compared to the same period in 2024. This figure not only positions Paraguay above traditionally established destinations such as Brazil, Chile, or Japan, but also marks a significant break from its own historical trends in tourist reception.

This growth is neither anecdotal nor marginal. In the first three months of the year, Paraguay experienced a tourism performance that far exceeded industry forecasts. The upward trend in arrivals—visible in the UN Tourism comparative graph—shows how the country has not only recovered the ground lost during the pandemic but is also embarking on a new era of positioning itself on the regional tourism map.

Unlike other economies in the region that had more solid foundations and established strategies, Paraguay stands out due to the cumulative impact of several factors that, together, have created a favorable environment for tourism growth.

Several temporary and structural factors are intertwined behind this boom. On the one hand, there has been a significant improvement in regional air connectivity, with new routes and frequencies that have facilitated the arrival of visitors from neighboring countries and other expanding markets. Low-cost airlines and bilateral agreements have played a key role.

Added to this are international events—sporting, cultural, and corporate—that have attracted a significant influx of visitors in the first months of the year, as well as more aggressive tourism promotion campaigns by the government and private sector, with presence at international fairs and digital marketing efforts that have achieved unprecedented visibility for the country.

In terms of attractions, Paraguay has capitalized on its status as a nature and culture destination, with tours such as the Jesuit Missions, the Paraguayan Pantanal, the Chaco, and the ecosystem around Itaipu. These destinations, while still relatively uncrowded, are perfectly suited to the current demand of tourists who prioritize authenticity, sustainability, and immersive experiences.

Another important aspect is the competitive exchange rate, which makes Paraguay an affordable destination compared to its neighbors. This has particularly benefited shopping, health, and wellness tourism, which finds a range of services with a good price-quality ratio in cities like Ciudad del Este, Encarnación, and Asunción.

Finally, the country enjoys an image of greater security and political stability in the regional context, which translates into a comparative advantage over competitors where internal unrest affects external perceptions.

This tourism growth has direct and profound implications for the local real estate market, both in the residential, commercial, and hotel segments.

One of the most immediate effects is on the short-term rental market, which is experiencing growing demand on platforms like Airbnb and Booking. Areas such as Recoleta and the Asunción corporate district, the Encarnación–Jesús–Trinidad district, the Ciudad del Este and Saltos del Guairá areas, and San Bernardino–Altos–Areguá are seeing a sustained increase in occupancy and appreciation of properties geared toward tourist rentals.

This, in turn, is driving a new wave of hybrid real estate investments, where the buyer profile is no longer exclusively an end-user, but rather a small or medium-sized investor, often foreign or expatriate, who sees Paraguay as a nascent market with good profitability.

Another growing segment is hotel and commercial infrastructure. As visitor arrivals grow, so does the demand for differentiated accommodations: boutique hotels, operated residences, glamping sites, eco-lodges, and designer hostels emerge as underexplored niches. This opens up opportunities for developers with a medium-term vision who can integrate architecture, hospitality, and sustainability into a single product.

Furthermore, the increase in international tourists also generates a greater need for complementary services, such as restaurants, cultural centers, coworking spaces, and art galleries, all of which contribute to urban revitalization in mid-sized cities.

The second graph published by UN Tourism, showing international arrivals to Paraguay in thousands, clearly illustrates how the growth recorded in this first quarter of 2025 not only exceeds the same period last year, but also the figures from 2019, before the pandemic. While many countries are still struggling to recover their pre-pandemic levels, Paraguay has already left them behind.

This shift in the curve suggests that what we're seeing isn't just a temporary rebound, but a structural reconfiguration of the national tourism industry, with spillover effects that directly affect the real estate market.

If this pace continues, Paraguay could consolidate itself as a leading emerging destination in South America in the coming years. But to capitalize on this window of opportunity, it will be key to align public policies, private investment, and strategic vision. The real estate sector, for its part, has a central role: not only as a recipient of tourism capital, but also as a generator of infrastructure, urban quality, and experiences that support this new era.

As has happened in other geographies where tourism has triggered profound urban transformations—from Medellín to Tulum—the challenge will be to grow without losing identity and develop without saturating.