What price per m² is and how to use it
The simplest and most powerful indicator for telling whether a property is expensive or cheap. How it is calculated and how to compare it properly.
6 min read · 5 sections ·
01What price per square metre measures
Price per m² is the total price of a property divided by its surface area. If an apartment costs US$ 120,000 and measures 80 m², its price per m² is US$ 1,500. It is a «normalised» figure: it lets you compare properties of different sizes on equal terms.
It is the first lens for reading a listing. A high total price does not mean the property is expensive, and a low one does not mean it is a bargain: everything depends on how many square metres you get for the money, and in which area.
02Built area vs. plot area
Be careful which surface you use. Built m² — the constructed area — is not the same as plot m², the area of the land. For an apartment the built area is what counts; for a house with a yard, or a vacant plot, the land area changes the calculation entirely.
When you compare listings, make sure you divide by the same basis in all of them. Mixing land-based prices with build-based prices leads to the wrong conclusions.
03Comparing against similar properties
Price per m² only means something when you compare it against comparables: similar properties, in the same neighbourhood, of the same type and condition. If a listing's price per m² sits well above the local average, that is a signal to negotiate, or to work out what justifies the premium.
In ParaguayInmo this calculation is built in: every property shows its price per m² and where it sits against nearby comparables, so you can see at a glance whether the price is in line with the market.
04What price per m² does not tell you
It is a starting point, not a verdict. Two apartments with the same price per m² can be worth very different things: the floor, the orientation, the view, the building's amenities, the standard of finish and the age all shape the real price.
Use it to filter and to negotiate, but always pair it with a viewing and a reading of the surroundings. The number tells you where to look; your judgement decides.
05Where to see the values for your area
There is no need to build the reference by hand. The ParaguayInmo price comparator calculates the median price per m² of every neighbourhood, city and department in the country from the listings active over recent months, with each area's typical range and how many listings back each figure.
Watch the trend too: an area whose median climbs steadily tells a different story from a stagnant one, even if they share the same value today. Comparing a listing's price against the current median of its own area is the fastest way to spot overpricing and opportunities alike.