Dominican Republic and the great investment opportunities in Real Estate

Maybe investing in real estate is one of the hardest decisions an investor makes. There are risks, opportunity costs, cost assessments that must be done beforehand and this can be overwhelming.

Therefore, here we bring you information that can help you when considering investing in real estate and real estate projects. In addition, we tell you why the Dominican Republic is in the sights of so many investors today.

Discover the great opportunities you have in front of you in these Caribbean paradises.

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Why invest in real estate in the Dominican Republic?

There are no restrictions on the purchase of real estate in the Dominican Republic. It is not necessary to be a resident or citizen to do so, although many choose to become a resident, as it is necessary to stay in the country for more than 90 days.

Thanks to the increase in tourism in recent years, real estate prices have increased.

Although prices are constantly rising by 10% a year, this country remains one of the most affordable real estate markets in the Caribbean.

Top 4 Cities to Buy Real Estate in Dominican Republic

1. RIO SAN JUAN

Playa Grande is one of the essential beaches of your trip to the Dominican Republic. This beach is considered one of the most beautiful in the whole country. It is characteristic for the reddish color of its sand and for its warm waters and turquoise tones. Its magnificent views are also very famous and much appreciated by photographers because, in addition to the beauty of its coast, the landscape is much more adorned with the thick forest of palm trees and white cliffs on one side.

2. CABRERA

This typical fishing village located 80 km from the airport of Puerto Plata has retained all its authenticity while taking advantage of the economic boom of the Dominican Republic, especially in the real estate sector, which remains a very popular sector for European and American investors. New projects such as the opening of an international airport (45 minutes from Cabrera), a marina, luxury residential complexes will inject dynamism in this beautiful town and participate in its development.

3. SOSUA

Sosua is becoming a retirement community for Canadians, Americans and Europeans. Warm weather throughout the year and economic life were a major factor. Sosua Beach has appeared in many travel magazines as one of the ten best beaches to visit.

4. PUNTA CANA

It is a typical holiday paradise and recognized as the most popular tourist destination in the Dominican Republic, as evidenced by the more than 6 million travelers who have visited its international airport in the last two years. This huge tourist market, established and constantly expanding, is a good base for the rental investor (1).

Fastest growing economy in Latin America

During the last 25 years, the Dominican Republic (DR) has experienced a remarkable period of solid economic growth. The economy continued its rapid expansion in the years prior to the COVID-19 pandemic, and between 2015 and 2019 the annual growth rate of the Dominican Republic’s GDP averaged 6.1%. Tourism, foreign direct investment, mining revenues, free trade zones and telecommunications have helped make the Dominican Republic one of the fastest growing economies in the Latin America and the Caribbean (LAC) region. Over the past decade, economic growth in the Dominican Republic has substantially reduced poverty rates and supported the expansion of the middle class. The country is on track to realize its ambition to achieve high-income status by 2030.

HIGH RETURN ON INVESTMENT

A good investment property located not far from the beach or with stunning panoramic views will certainly benefit from high occupancy and rental rates, ensuring a strong return on investment, between 6% and 12% annually for the best winners. The average rent ROI is 8% per year. In addition, the growing demand for beach properties in the Dominican Republic is driving property value. Therefore, homeowners can expect strong capital gains on their property in the short to medium term.

EXCELLENT LEGAL ENVIRONMENT

At the real estate level, the legal environment is very attractive for foreign investors, as they can become sole owners of their property, including land, thus enjoying the same property rights as Dominicans. The original title is physically transferred from the seller to the buyer along with the GPS demarcation that identifies the boundaries of the land.

ATTRACTIVE TAX INCENTIVES

The real estate industry has been significantly promoted by government measures to stimulate tourism and give important tax incentives to investors in promoting tourism development. One of the main laws supporting this is the CONFOTUR certification. It aims to develop sustainable tourism by offering tax incentives to investors (3).

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