To Airbnb or Not to Airbnb Asuncion Paraguay

Airbnb Asuncion?

“To Airbnb, or not to Airbnb — that is the question.
Whether it is nobler, in the investor’s mind,
To suffer the slings and arrows of vacancy and churn,
Or else to anchor, calm, in longer terms,
And end the monthly drama.
To lease, to rest —
No gaps.
Less fuss, no late-night check-ins,
The unknown, and the endless WhatsApp texts,
To chase the promise.
If fortune smiles on us — ’tis greatly to be wish’d.
Get rich, gain wealth.
What upside may be lost — ah, there’s the rub.”

That Hamlet inspired soliloquy describes the modern property investor’s dilemma in 2026 worldwide, not just in Asuncion. With many Airbnb hosts around the world reporting diminishing returns, the real question is whether Asuncion’s current growth story creates a genuine business case for short-term rental investment — or whether the smarter move is still long-term leasing.

Asuncion is not a classic mass-tourism destination. The Airbnb Asuncion business case is not the same as in a classic tourist city therefore. This is not Cartagena, Bali, or Medellín. Demand exists, but much of it is practical rather than holiday-driven. Short term renters come in the form of Corporate stays, Paraguayans visiting the capital, people relocating, and foreigners coming in to complete residency and legal processes. 

In a major tourist city, the short-term rental business case can look obvious. There is constant visitor demand, familiar seasonality, and a ready-made stream of travellers looking for somewhere to stay.

Airbnb Asuncion is different!

The city clearly has a functioning short-term rental market, but it is not powered by endless leisure tourism. AirDNA’s public overview suggests Asuncion’s short term rental market is where smaller units dominate, most listings are on Airbnb and booking.com, but a large share of those listings are available for substantial parts of the year – ie: Vacant and not earning revenue.

Rental real estate investors should therefore stop asking whether short-term rental looks glamorous, and start asking a more useful question: after vacancy, cleaning, utilities, management, and furnishing costs, does Airbnb actually outperform a well-placed long-term rental by enough money to justify the extra work, gap risk and volatility?

Asuncion Airbnb Performance Data – Is It Profitable Enough?

Depending on the data source and how “active listings” are defined, Asunción appears to have roughly 1,280 to several thousand short-term rental listings.

According to AirROI’s Asuncion Market Report January 2026, there are approximately 1,280 active Airbnb listings in Asunción, Paraguay. 89.1% of the listings are entire apartments as opposed to a room in an apartment shared with the owner or a house.

Average Daily Rate: $49
Average Occupancy Rate: 48%.
Average Annual Revenue: $7,046 GROSS (Before 20% management fee, expenses, taxes, rates, utilities, mortgage, maintenance and furnishings replacement)

Now of course you may charge more per night for your place. There are listings at $75 per night. That doesn’t mean they have higher occupancy. And Airbnb encourage you to lower the rate if it’s not rented out several days before the weekend. 

AirDNA’s current data for Asunción is based on examining 3,681 short-term rentals currently listed in the greater city area in 2025. They reported:

Average Daily Rate: $50.6
Average Occupancy Rate: 58%.
Average Annual Revenue: $10,713 GROSS

To Chase the Promise, or Secure the Peace with Long Term Leasing

As a comparison the average 1- 2 bedroom furnished apartment on a 1 year lease could average $13,000 – $15,000 per year. You could expect to make more if you’re in an upmarket building with amenities and you have new furniture. 

With long term leases you don’t have the Airbnb fees. Management fees are only 10-12% instead of 20%. The tenant pays the utilities. You have a security deposit for any repairs. No gaps and little stress if you get a gem of a tennant. 

Interesting to note that 43.2% of Asuncion’s Airbnb listings have a 30+ day minimum stay according to AirDNA current data. That figure matters because it suggests a meaningful slice of the market is already leaning toward longer furnished stays, rather than short term stays relying on high volume traffic.

A common theme in Asuncion is for internationals coming in looking to move here on a more permanent basis, to first rent an Airbnb they like, and then negotiate a longer term lease with the owner or manager. It is a pattern that suggests many owners and investors ultimately see greater value in converting short-stay interest into longer-term tenancy once the right tenant appears.

However, this pattern also presents an opportunity for a well managed Airbnb. As more listings come off the Airbnb platform due to longer term leases, the more opportunity opens up for new short term listings to enter the market.

There are reports of professional managed and marketed Airbnb’s enjoying a 70-80% occupancy. But they are not the median. If an Airbnb unit performs closer to 80% occupancy, it may beat long-term rent provided that you don’t get any visitors who trash the place, or leave it in a state that requires higher than normal maintenance costs. 

After vacancy, management fees, utilities, cleaning, building fees, and the operational friction of short stays, does Airbnb outperform long-term renting by enough to justify the extra effort and volatility?

That is the rub.

Don’t Abandon Airbnb Asuncion

This is not an anti-Airbnb Asuncion argument.

There is clearly a place for furnished short-stay and medium-stay housing in Asunción. The market data suggests real demand, and the city is experiencing a growth spurt in both migration and immigration. 

However, if you’re considering doing Airbnb with your first rental property in Asunción, there is a strong argument for making it a long-term rental first.

Why?

We’re not financial advisors, and this is not financial advise. Food for thought. Think of your first investment property ideally giving you:

• Reliable cash flow
• Lower operational burden
• Less vacancy exposure
• A more stable base for your portfolio

Once you have that foundation, your second or third purchase may be the better place to test a furnished short-term strategy.

That is the more sensible path that many rental real estate investors take.

It means you are not depending on a single high-touch asset class to carry your income. And if your goal is steady returns over a five-year period, a long-term rental with a good tenant may come out ahead on a risk-adjusted basis, even if the Airbnb model occasionally flashes higher gross numbers.

You do also need to consider what the value of the property will be when its time to resell. After high volume traffic through an apartment it’s going to require repairs and renovation to make it saleable. The value of the property is more often that not, less than if you had stable long term tenants.  

And if you decide not to renovate before you sell, then the property will probably sell for less than you could get.

The Real Rental Real Estate Investor’s Question

So…. To Airbnb, or not to Airbnb?

In Asuncion, that is not a poetic question. It is a portfolio question.

If fortune smiles on you, a short-term rental can do very well. But if the calendar softens, if costs creep up, or if management becomes more burdensome than expected, the glamorous strategy can quickly become the less profitable one.

That is why the wiser path for many investors may be:

• First property: long-term rental for stability
  
• Second or third property: Airbnb or furnished medium-stay to capture upside

Not because Airbnb is wrong.

But because stability first often makes the stronger business case.

A Wiser Course Through Every Phase

At Etico Property Managers, we do more than manage property — we help investors protect and grow their portfolio with foresight and strategy. We understand the 8-phase boom-and-bust cycle that cities like Asunción go through during periods of rapid development, and we help owners make better decisions as the market moves through each phase.

Our role is not just to collect rent and solve problems. It is to support sustainable profits through hands-on management, grounded market insight, regular updates, and ongoing discussion about how each property fits into the bigger picture of your portfolio.

If you own an apartment in Asunción, have a portfolio that needs managing, or are considering buying property here, fill out the form here and let’s talk about whether each asset is better suited to long-term rental, Airbnb Asuncion, or a strategy designed for stable returns and long-term sustainable growth.