Asuncion is not a particularly massive capital city, by global standards, but it's still quite large, so you'll want to base yourself relatively close to the places that you'll likely be visiting most frequently. Here is an overview of some of the main areas you are likely to visit in your first few weeks or months in Asuncion.
Villa Morra
We'll start with the most widely recommended part of town - Villa Morra. It's worth noting that the term "Villa Morra" simultaneously refers to two general areas - there's the official Villa Morra neighbourhood, and then there's the wider area, which includes the surrounding neighbourhoods of Recoleta, San Blas, Carmelitas, Manora, and eastern Mariscal Lopez.
The reason for the difference is that historically, the whole area was known as Villa Morra - and then more recently, split into smaller sections for governance purposes, with the surrounding areas being given different names to differentiate them.
So when you see recommendations online to start off in Villa Morra (of which there are plenty, and for good reason), just bear in mind that there really isn't very much difference between the actual, current, Villa Morra neighbourhood, and the immediately surrounding areas.
This general area is the most modern part of Asuncion, and three of the largest shopping malls (Paseo La Galeria, Shopping Del Sol, and Shopping Mariscal) are in this general area (although none of them are technically inside the actual Villa Morra neighbourhood!)
There are many modern hotels and apartments in this general area, a lot of it is walkable, it's generally safe, and doesn't feel sketchy at all. It's also where a lot of nightlife options are based, notably Paseo Carmelitas and Calle Senador Long.
It's also the most expensive part of town to stay in - although you can find cheaper prices in the surrounding areas, notably San Blas and Recoleta, which are still nearby.
Villa Morra is roughly 20 minutes by car from both Downtown, and the airport (in opposite directions).
Downtown Asuncion
If you like old (and often in need of a fresh coat of paint or more) colonial-style buildings, a sense of history, and an edgier artistic vibe, Downtown Asuncion is the place to be.
Less well-maintained than Villa Morra (generally, although there are exceptions in both areas), it still has a wide range of trendy nightspots, rooftop bars, and restaurants, as well as the Presidential Palace, Palace of Congress, Central Bank, Cathedral, and Pantheon of Heroes.
Prices for accommodation here are generally in the middle for Asuncion - not as high as Villa Morra, and not as low as some of the further-out areas of the city.
It's more tightly-packed here, as is common with city centres generally, there are more people around, and you're more likely to be approached by people asking for money than in many other parts of the city.
Most of the government offices you will need to attend in person are here - but as you will usually only need to attend on two separate days, there's no real need to be based here for that purpose.
Unless it's rush hour (5-6pm), travelling between Downtown and Villa Morra (and vice versa) generally only takes around 20 minutes by Uber/Bolt/Taxi, and costs around $3-to-$5 (USD), depending on the precise start and end points.
Expect it to take between 30-45 minutes to get to the airport from Downtown, although again this can vary depending on the time of day and the general traffic situation (which isn't bad, compared to other capital cities worldwide).
The areas between Villa Morra and Downtown
Anywhere en route between these areas, close to Avenida Espana and/or Avenida Mariscal Lopez or in Mburicao, will have less going on locally (primarily residential areas, with a selection of retail outlets directly on the main roads), but are fine to live in, if you can find a nice place.
You'll have to travel to get to most places you will want to go to every time (in either direction), and you won't find as many short-term accommodation options, but it may be slightly cheaper - and more quiet.
Surrounding towns and cities
The Asuncion metropolitan area, or "Greater Asuncion", also includes several other towns and cities - nineteen (19) of them! So twenty (20) in all, including Asuncion itself.
Generally speaking, the most well-known ones are Luque (where the international airport is located), San Lorenzo, Fernando de la Mora, and Lambare. Aregua also has a sizeable expat population.
On a like-for-like basis, you can expect accommodation prices to decrease the further away you get from Asuncion itself. You can also expect to have less options for things like supermarkets, restaurants, bars etc the further you go out - although there are still plenty of options in all these places.
It's still relatively easy to get an Uber/Bolt/Taxi into Asuncion "proper", but will obviously take longer and cost more - so bear that in mind if you will likely want to be in the more "happening" areas during your first few weeks in Asuncion.
Areas you might want to avoid
As with many cities worldwide, there are some areas of Asuncion which have a reputation for being less desirable, particularly for a fresh-off-the-boat foreigner. These are:
Banados - this is one of the predominantly poor areas of Asuncion, next to the river and prone to flooding.
La Chacarita - something of a shantytown, in between Congress and the river
Zeballos Cue - a heavily industrial area, quite dirty, with a busy port and a large slaughterhouse (and the smells that go with it)
Our recommendation
We are with the majority of people on this - for most people we think the best option for when you first arrive, is Villa Morra and the immediately surrounding areas:
It will just be a little easier for you, a lot of what you are likely to want is very close, it is very easy to navigate, there are a lot of accommodation options, and it is a great place to base yourself for your first few weeks or months in Asuncion.
Once you know your way around the city and surrounding areas after living here for a few weeks, you will have a better idea of which of the other different options appeal to you the most, and can then move somewhere else if you wish.
Finding and booking accommodation
You can use any of the usual online hotel or home rental websites for any other place worldwide, such as AirBnB, Booking.com, Expedia, Agoda, Hotels.com,
and so on. There are many options to suit every budget, although prices
for apartments are not as cheap (by global standards) as many other
things in Asuncion are.