Encarnación: The Paraguayan Riviera and its Real Estate Opportunities

Encarnación: more than a border city

Just 370 km from Assunção and with a direct border with Posadas (Argentina), Encarnación is known as the "Riviera of Paraguai". Its artificial beaches on the banks of the Paraná River, the famous Carnaval Encarnaceno and the Costal do Rio will transform the city into two of the most dynamic tourist destinations in Cone Sul.

For the real estate investor, Encarnación represents a different opportunity from Assunção: lower traffic, more affordable prices and a rapidly expanding tourist market.

The impact of the Costanera on valorization

The Costanera de Encarnación — a riverside boulevard with beaches, restaurants and recreational spaces — was built with resources from Itaipu Binacional as compensation for the plant's works. The result was an unprecedented urban transformation: areas worth USD 50/m² in 2010 today reached USD 400/m².

Current real estate market

The square meter in Encarnación varies from USD 300 to USD 800, depending on proximity to the Paraná River. Apartments with a view of the river reach values in the coming years of Assunção, plus a higher return on investment due to the tourist flow.

Segments in high:

Apartments for seasonal holidays (Carnival and summer)
Houses near artificial beaches
Commercial properties close to the Argentine border

Carnival and return of investment

The Encarnación Carnival is considered the third largest in the world, just behind Rio de Janeiro and Gualeguaychú. During the 4 weekends of carnival (February), apartments in the central region cost USD 300–600 per day with 100% occupancy.

An investor with a well-located apartment can recover 3–4% of the investment just during the carnival season.

How to get to Encarnación

From Assunção: 4h30 by car to Route 1
From Posadas (Argentina): crossing the San Roque González de Santa Cruz International Bridge
From São Paulo: flight to Posadas + crossing or flight to Assunção + car

Outlook for the coming years

The construction of the second stretch of the Costanera and the expansion of the Encarnación Airport must further promote tourism and property valuation in the next 5 years.

Sources:

Now we don't have any properties listed in Encarnación, but between our contacts — our network of partners covers all of Paraguay.