Real estate market trends in the Dominican Republic
The real estate market in the Caribbean is booming. It is for this reason that if you are a real estate investor it would be important for you to know the trends in the real estate market in Dominican Republic to know how to focus your investments.
Thanks to the sustained growth of tourism and excellent tax conditions for investors, it is one of the reference countries for the development of new tourism real estate investments in the Caribbean and at the international level.
Despite the growth of inflation in the last year by 3.57%, it is comparatively one of the most interesting markets to invest in hotels, villas and apartments. If you are looking for options, discover here our real estate projects in the Dominican Republic.
Here are some of the trends you should take into account when defining your real estate choice.
Latest trends in the Dominican Republic real estate market
Let us examine some of trends in the Dominican Republic real estate market that you may not have known about.
1. Tourist rentals
Tourist rental platforms such as AirBnB represent an important business opportunity and source of income when investing in real estate.
Beyond long-term rentals, the Dominican Republic's tourist environment and its strong demand for housing offers the advantages of short-term tourist rentals, as well as room rentals.
2. Creation of real estate tourism projects
One business opportunity in the Dominican Republic is the development of tourism construction projects.
In this case, investors do not invest in already developed properties, but rather build a construction site from the beginning, with the objective of achieving returns from the tourism business.
This is the case of the construction of aparthotels, hotels and tourist villas, which can provide extraordinary returns in a country that receives an average of more than 8 million tourists per year, and with a high projection.
3. Investments in goal fields
The purchase of land in Dominican Republic does not always have to be oriented to housing or lodging real estate projects.
Many investors are contemplating diversifying their strategy with the development or acquisition of golf courses, a growing investment trend.
Thanks to the low supply and the tourist attraction for many visitors from the United States and other countries with long tradition of golf as a leisure offerThis type of investment offers great advantages.
4. Luxury apartments
When we are seeking to position ourselves in a market, it is of great importance to determine our profile and strategy as investors.
The luxury apartments in Dominican Republic are an attractive option because they are focused on a type of customer with high purchasing power, which makes it possible to reduce competition and maintain the attractiveness of the offer even in times of high inflation or market downturn.
On the other hand, phenomena such as nearshoring are increasingly present in the Dominican Republic, as investors from neighboring countries prefer to develop their real estate portfolios in locations with lower taxes and higher potential for profitability.
5. Remote real estate investments
Is it necessary to live in the Dominican Republic in order to purchase a tourist property? There are more and more opportunities for investors to buy real estate without having to live in the area where they are going to make their investment. Discover the advantages for foreign investors in the Dominican Republic.
Having a real estate developer such as Vivantia Homes, with more than 20 years of experience in the sector and an exceptional real estate offer, allows you to discover investment opportunities at a distance without the need to visit the country repeatedly in search of real estate projects.
6. Investment in housing developments or planned communities
One of the strategies followed by many investors in the Dominican Republic is to look for investment opportunities in properties that offer infrastructure, services and facilities in the same area, so as to enhance the added value of the apartment and thus maximize profitability.
We are talking about investment in apartments located next to gardens, swimming pool and green areas, with spectacular landscape designs, avant-garde architecture or integration with beach areas, which generates great possibilities of revaluation in the long term.
7. Investments in sustainable housing
The growing awareness of the need to build a new housing that reduces environmental impact and provide the conveniences of technology has become a very attractive opportunity.
The the rise of Smart Cities is also reaching tourist areas in the Dominican Republic, where the key is to consider high standards of integrity to promote wellbeing and reduce unnecessary travel.
In this line, Vivantia Homes promotes sustainable tourism, based on quality and best practices to promote the development of communities that offer a pleasant and respectful living experience with the environment.
8. Locations near the beach
9. Investments in turnkey projects
Not all real estate investments have the same rental or resale potential. In a tourist destination such as the Dominican Republic the proximity of the apartment or hotel to the beach is a factor that significantly increases the speed with which a real estate project can be profitable.
These do not always have to be low-lying locations; the price of land investment can be reduced when it comes to buying or selling land. develop projects on hills overlooking the beach.
Betting on tourist areas of recognized value such as Punta Cana is an opportunity of high potential, especially if they are projects that are below market or offer the possibility of revaluation through reform. Discover the keys to invest in real estate in Punta Cana.
Challenges in the development of real estate projects from scratch The benefits and disadvantages, especially for more conservative investors or those who do not want a high degree of involvement and risk in the projects, are both beneficial and disadvantageous.
There are many investors who wish to reduce the opportunity costs associated with building projects from scratch, seeking to investments more agile and secure in turnkey projects that allow them to obtain a secure return, even though it may be lower than if the project were developed from scratch.
We hope that these trends in the Dominican Republic real estate market help you have a clearer vision of how to approach your investments in one of the most important real estate investment havens in the world.
