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Paraguay’s construction sector shifts from housing toward corporate projects and logistics parks
🇵🇾 Paraguay /Energy & Infrastructure

Paraguay’s construction sector shifts from housing toward corporate projects and logistics parks

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

In-depth Named sources Context piece
  • Paraguay’s construction sector is expected to grow 3.5% in 2026, account for 6.5% of GDP and generate nearly $3.7 billion in output, according to Capaco.
  • Activity is expanding beyond residential housing into corporate buildings, logistics parks and projects in cities outside Asunción.
  • Private investment is driving growth, while programs such as Che Róga Porã are widening access to housing credit for working middle-class families.

Cranes are rising over Carmelitas, the Costanera, Villa Morra and Molas López in Asunción, while logistics warehouses are expanding in Central. In Ciudad del Este and Encarnación, construction follows a different rhythm, shaped by border trade and tourism. Paraguay’s building industry is no longer moving as one market, but as a collection of markets developing at different speeds.

The Paraguayan Chamber of Construction, known as Capaco, brings together 225 members ranging from major developers to medium-sized builders, small contractors and individual investors. That mix reflects the sector itself. Large developers dominate major residential, corporate, logistics and mixed-use projects. Smaller companies remain important in single-family homes, renovations and smaller commercial works.

Capaco President José Luis Heisecke describes this diversity as a strength because it allows the industry to serve different segments of demand while sustaining a broad network of jobs and suppliers. Ministry of Public Works and Communications figures put direct employment at about 300,000 people. The Central Bank of Paraguay estimates that construction represents 6.5% of gross domestic product.

Large developers concentrate a substantial share of the largest-scale projects, mainly in residential, corporate, logistics and mixed-use buildings.

— José Luis HeiseckeThe Capaco president described how different types of companies are distributed across Paraguay’s construction market.

Capaco expects construction to finish 2026 with 3.5% growth and output of about $3.7 billion. Private investment is providing the main momentum, while public works continue at a more uneven pace. Employment has also risen, from roughly 234,000 registered workers at the start of 2025 to nearly 300,000 today, according to Heisecke.

Demand is changing as well. Middle- and upper-middle-income buyers continue to purchase apartments for homes and investment, but a larger group of working-class middle-income families is beginning to enter the market. Many had previously failed to qualify for traditional mortgages. The Che Róga Porã program, offering a fixed annual rate of 6.5% for terms of up to 30 years, has more than 6,100 families with loans either preapproved or under review.

The diversity allows us to serve different segments of demand and sustain a broad network of employment and suppliers.

— José Luis HeiseckeHeisecke presented the sector’s range of companies as a strength.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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