Several factors contribute to this growth:
1. Young Demographics: Over half of Paraguay’s population is under 27 years old, driving demand for housing as young adults seek places to live. The fertility rate remains robust at approximately 2.3.
2. Stable Political Environment: A long-standing right-wing government provides stability, with no significant socialist or communist influences, unlike some Western countries.
3. Capital Influx: Political and economic instability in neighboring countries has made Paraguay a safe haven for foreign capital, attracting investors and residents.
4. Affordable Labor: Paraguay offers relatively low-cost labor compared to other countries, supported by a large, youthful workforce.
5. Growing Middle Class: Many young Paraguayans are pursuing higher education and embracing entrepreneurial opportunities, building small businesses and increasing local purchasing power.
6. Increasing Urbanization: Migration to Asunción is rising as people seek better opportunities and improved quality of life.
7. Influx of Foreigners: Favorable migration policies have led to a significant inflow of foreigners, with over 28,000 residency applications last year. Many expatriates, including digital nomads, are staying permanently or investing in properties for short- and long-term rentals.
8. Inflationary Currency: Limited access to foreign capital markets and an underdeveloped local market restrict investment options, encouraging Paraguayans to invest in real estate.
9. Low Taxes: Compared to Western countries, Paraguay’s low tax rates allow residents to save more. A significant informal economy also means many pay minimal or no income taxes.
Additional factors may contribute to this growth. Perhaps @npub1w8x0lkaqjwwzrha3h6w9qej4eudrkpr2nly2gpxvxmz8x7cx5nvqgy6mdq can provide further insights or corrections. 🫡
