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Park Lofts investment model: short-stay income and capital value

Projected net yields of 7–14%, occupancy rates above 80%, and a market where demand outpaces supply four times over in the compact segment. That is how the Park Lofts model works.

August 18, 20255 minBy Investor Relations
Park Lofts investment model: short-stay income and capital value

In July 2024, Moody's awarded Paraguay its first investment grade rating: Baa3. Apartments in Asunción currently trade around 41% below the average of other Latin American capitals, with the region's lowest inflation rate, a maximum tax burden of 10% on rental income and exceptional market liquidity — properties sell on average within 40 to 50 days and are rented out within 20 to 35 days. It is the most favourable entry point on the continent for the long-term investor.

The demand context reinforces this picture. In Q1 2025, Asunción was ranked the world's best-performing destination by the UN Tourism Report, with 53% more international arrivals compared to 2024. The city recorded 198% growth in digital nomads — the highest in the world, ahead of Da Nang (+167%), Cape Town (+156%) and Doha (+152%). The territorial tax system offers 0% on foreign-sourced income, residency with accessible requirements and no minimum days of presence: a unique combination for the globally mobile professional.

A big data study by InfoCasas on rental demand in Asunción by unit size reveals the structural opportunity in which Park Lofts operates: in the compact apartment segment up to 45 m², demand outpaces supply by four times. The 60 to 150 m² market, by contrast, faces oversupply with no equivalent demand. Park Lofts designs its studios at 20 to 33 m² — precisely on the optimal side of that curve: high absorption, low competition, first-mover advantage.

The investment model rests on three pillars: compact studios in high-turnover locations, short-stay occupancy rates consistently above 80% with low seasonality driven by regional corporate travellers and remote workers, and projected net yields of 7% to 14% across both long-term and short-term rental. Park Lofts Tower, 50 metres from Paseo La Galería, starts at USD 60 per night — vs USD 125 at the Sheraton and USD 77 at the Airbnb average for the area — with hotel-grade amenities: lobby-café room service, concierge, valet parking, co-working and a tropical rooftop.

The track record supports the proposition: 5 projects, 350 units in development, USD 8.5 million in cumulative sales and zero debt. Park Lofts is also the first developer in Paraguay to offer accredited investors, family offices and institutional buyers the option to acquire entire buildings — including land title, involvement in design and full-service management of the completed asset.