Buying a house in Santo Domingo vs. Punta Cana

When you consider invest in Dominican Republic or you want to buy a vacation home to enjoy a season in a Caribbean paradise, location is undoubtedly one of the most important factors. Many people only consider, however, two options: buying a home in Santo Domingo vs. Punta Cana.

Which is the best city in the Dominican Republic to make real estate investments? Why buy a house in Punta Cana or Santo Domingo? In this post we are going to show you some aspects that you may not know, but that can be very helpful if you want to make investments in the Dominican Republic.

Buying a house in Punta Cana vs. Santo Domingo

There are several reasons why it is much better to invest in real estate in Punta Cana than in Santo Domingo, but we will mainly focus on three: tourism, security and quality of life.

Punta Cana is the main gateway to the DR and the Caribbean.

Although Santo Domingo is the capital of the Dominican Republic, in practice Punta Cana is the gateway to the country.

Because Punta Cana International Airport (PUJ) is the country's main airport, and one of the gateways to the Caribbean for those coming from North America, Europe and Latin America.

With more than 61,000 air operations per year and a passenger traffic of almost 10 million people, it is the first place that tourists visiting the Dominican Republic go to, since Punta Cana is a city designed for tourism.

As a real estate investor, it is logical that you are interested in investing where there are more possibilities to rent your property at an attractive price, since there are many people who come to enjoy the city, or who stop there because they are passing through on their way to other destinations.

A luxury environment, with resorts and hotels at the highest level.

If what you are looking for is a luxury environment, with beautiful resorts, golf courses like Cocotal Golf & Country Club and a variety of restaurants and high-end hotels, it is certainly much better to buy a home in Punta Cana.

Punta Cana is a luxurious city, but also for people who want to live well and enjoy quality of life.

As an investor, you may have wondered at some point in which area of Punta Cana millionaires live. Because you would like to have a property as close as possible, which allows you to charge high rents. The truth is that in the whole area of La Romana, and especially in Cap Cana and Cocotal Golf & Country Club and Bávaro, you will be able to find high-level apartments and villas to rent at more than excellent prices.

Santo Domingo, a more urban and working city

Santo Domingo is an urban, commercial and residential city, which makes it primarily an economic center. Punta Cana, on the other hand, stands out for its quality of life, a calmer atmosphere and a more leisure and pleasure-oriented environment.

Although it also has its tourist appeal, buying a home in Santo Domingo is more geared towards those who wish to pursue a long-term rental strategy. It is in Punta Cana where it is easier to obtain high rents per night for short periods, which increases long-term profitability.

Which is safer to live in, Punta Cana or Santo Domingo?

Another reason why it is worth buying a house in Punta Cana vs. Santo Domingo is security. Both cities are very safe, although it is true that the different areas of Punta Cana are much more homogeneous, and having much less population and a higher standard of living, security is excellent.

Although both cities are extensively developed, Punta Cana stands out for its luxury developments, with 24/7 security, as well as multiple resorts, so it offers a much more pampered environment.

On the other hand, Santo Domingo is a capital of more than 2,800,000 inhabitants, so it is much more heterogeneous, and although you will find luxury apartments and villas, there are also more areas with less control.

All in all, you should be aware that the Dominican Republic is very safe compared to surrounding countries, and in recent years crime rates have decreased significantly.

Which is more expensive, Santo Domingo or Punta Cana?

Clearly Punta Cana has a much higher average sales price, around $2000-2200 USD per square meter, compared to the $1,650-1700 that can be found in Santo Domingo.

Keep in mind that everything will ultimately depend on the area where you are. It is not the same to do Real Estate in Cap Cana or in the area of Playa Bávaro, than in other more peripheral areas, such as Verón or Uvero Alto.

However, we recommend that you do not focus solely on price, since as investors we must think in terms of profitability.

If investing more in the purchase of a luxury apartment will allow you to charge higher rents, or the property will appreciate much more in value in the future, with a luxury apartment you can reduce the risks. In a place like Punta Cana, a meeting point for many travelers with high purchasing power, you will have no problem renting your home, and revaluing it with yields that exceed 10% net annual return in many cases.

In short, we recommend that you clearly bet on investing or living in Punta Cana. Having said all this, whether you want to buy a house to live in the Dominican Republic or you are a real estate investor, we invite you to ask for our help to buy your home.