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Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
The average house in the Dominican Republic costs around DOP 104,612 per square meter (approximately $1,760 per square meter or $163 per square foot) as of September 2025.
Property prices vary significantly by location, with tourist hotspots like Punta Cana commanding $200,000-$800,000 for condos and $500,000-$2 million for villas, while budget-friendly areas like Santiago offer houses starting from $90,000. The Dominican Republic real estate market has shown strong growth with house prices increasing 11.6% in the past year and 42.3% over the past five years after adjusting for inflation.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Dominican Republic, based on reliable facts and data, not opinions or rumors.
The Dominican Republic residential market offers diverse property types from $90,000 apartments to $25 million luxury villas, with the most popular areas being Punta Cana, Santo Domingo, and Las Terrenas for both investment and living purposes.
Current market conditions show strong appreciation potential with 7-12% expected growth through 2025 and forecasted annual increases of 3-8% over the next five years, making it an attractive destination for both investors and residents.
| Property Type | Average Size | Price Range (USD) | Best Locations |
|---|---|---|---|
| Apartments/Condos | 60-150m² | $90,000-$800,000 | Santo Domingo, Punta Cana |
| Townhouses | 150-300m² | $150,000-$600,000 | Sosúa, Cabarete |
| Villas | 250-600m² | $300,000-$2M+ | Las Terrenas, Punta Cana |
| Luxury Properties | 400-1,000m² | $700,000-$25M | Casa de Campo, Cap Cana |
| Rural Homes | 1,000m²+ | $50,000-$300,000 | Santiago, Interior regions |
What types of properties can you buy in the Dominican Republic?
The Dominican Republic residential market offers six main property types for buyers in 2025.
Apartments and condos represent the most common option, ranging from studios to luxury penthouses, with sizes typically between 60-150m² in urban areas like Santo Domingo and tourist zones like Punta Cana. These properties serve as entry-level options for most international buyers.
Villas are standalone upscale homes found in gated or beachfront communities, usually measuring 250-600m² and priced from $500,000 to several million dollars in luxury developments. Townhouses provide a middle-ground option with more space than condos but lower costs than detached villas, commonly found in planned developments.
Single-family homes are available in both urban and suburban areas, while rural lots and land offer lower entry prices for investment or personal development. Some buyers also consider sustainable eco-houses and traditional bohios (simple rural dwellings) in countryside locations.
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Which regions attract the most property buyers?
Five key regions dominate property purchases in the Dominican Republic as of September 2025.
Punta Cana and Bávaro in La Altagracia province show the highest demand and fastest growth rates, making them ideal for short-term rental properties and vacation homes. The area benefits from international airport access and established tourism infrastructure.
Santo Domingo, the capital city, maintains strong appeal as the business hub with robust long-term rental and resale markets. The metropolitan area offers the most diverse property options and stable year-round demand from local and international professionals.
The Samaná Peninsula, particularly Las Terrenas, attracts buyers seeking coastal beauty and established expat communities, with premium villas showing strong appreciation potential. The North Coast including Sosúa, Cabarete, and Puerto Plata remains expat-friendly with strong year-round tourism supporting both affordable and luxury segments.
Casa de Campo in La Romana represents the most prestigious luxury enclave, home to multi-million-dollar villas and exclusive resort amenities.
What are the typical house sizes across different areas?
House sizes in the Dominican Republic vary significantly by location and property type as of September 2025.
Urban apartments in Santo Domingo and Punta Cana typically measure 60-150m² for standard condos, while penthouses and luxury condos can reach 250-400m². Suburban and expat-focused homes commonly range from 150-300m², providing comfortable living spaces with outdoor areas.
Villas usually span 250-600m², with some luxury properties in top-end resorts exceeding 1,000m². These larger homes often include multiple bedrooms, pools, and landscaped grounds typical of tropical resort living.
Rural homes and lots vary widely in size, with land parcels often exceeding 1,000m² to accommodate agricultural use or future development. Mountain and countryside properties generally offer more space at lower per-square-meter costs compared to coastal and urban areas.
How much do houses cost including all fees and taxes?
Dominican Republic house prices vary dramatically by location, with total purchase costs including 4-7% in closing fees and taxes.
| Location | Condo (2-3BR) | Villa/House | Luxury Properties |
|---|---|---|---|
| Punta Cana | $200,000-$800,000 | $500,000-$2M+ | $2M-$10M+ |
| Santo Domingo | $150,000-$400,000 | $220,000-$1.3M | $1M-$5M |
| Las Terrenas | $300,000-$700,000 | $400,000-$2M+ | $2M-$8M |
| Sosúa/Cabarete | $150,000-$400,000 | $300,000-$800,000 | $800K-$3M |
| Casa de Campo | $400,000-$6M+ | $700,000-$10M | $10M-$25M |
| Santiago | $90,000-$250,000 | $200,000-$500,000 | $500K-$2M |
Closing costs include a 3% transfer tax on appraised value, attorney fees of 1-1.5% (minimum $800), notary and document fees of approximately 1%, surveyor costs up to $600, and translation services up to $200 if needed.
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What ongoing costs should you budget for house ownership?
Dominican Republic property ownership involves several ongoing expenses that buyers should factor into their budgets.
Annual property tax applies at 1% for properties valued above DOP 10,190,833 (approximately $166,000-$172,000), with no annual tax below this threshold. Municipal and local taxes are typically minor, with some cities charging 0.1-0.3% for local services.
Homeowners association (HOA) fees range from $200-$2,000 annually depending on community amenities and services. Monthly utilities for an average 85m² home cost approximately $58 for electricity, water, and gas, $39 for internet service, and $19 for mobile phone contracts.
Property insurance runs 0.2-0.5% of property value annually, with hurricane and wind coverage recommended for coastal properties. These costs are generally lower than comparable expenses in North American or European markets.
What financing options exist for property purchases?
Both local and foreign buyers can access mortgage financing in the Dominican Republic, though terms differ from international standards.
Dominican banks require 20-40% down payments with loan terms up to 25 years and interest rates ranging from 7.25-8%, higher than North American or European rates. Approval processes require similar documentation to US or Canadian mortgage applications.
Seller financing occasionally becomes available with terms varying by individual agreements. Foreign buyers often benefit from refinancing properties in their home countries and purchasing Dominican properties with cash, securing better interest rates through this approach.
Local banks show increasing willingness to work with international buyers who demonstrate stable income and meet standard creditworthiness requirements. Pre-approval processes typically take 30-60 days for foreign applicants.
Can you provide specific purchase examples by location?
Real purchase examples from September 2025 demonstrate the Dominican Republic's diverse pricing landscape.
In Punta Cana, a 120m² two-bedroom oceanview condo costs $350,000, while a 400m² beachfront villa reaches $1.2 million. Santo Domingo offers a 90m² apartment in Piantini for $180,000 and a 250m² house in suburban areas for $320,000.
Las Terrenas features a 150m² hillside condo for $450,000 and a 500m² beachfront villa for $1.8 million. Sosúa provides more affordable options with a 100m² condo for $160,000 and a 300m² house with pool for $380,000.
Casa de Campo represents the luxury segment with a 200m² golf-course condo at $800,000 and a 600m² oceanfront villa at $4.5 million. Santiago offers budget-friendly choices including a 80m² apartment for $95,000 and a 200m² suburban house for $220,000.
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Which areas offer the best value and highest prices?
Dominican Republic real estate markets show clear patterns in pricing and value as of September 2025.
The most expensive areas include Casa de Campo in La Romana, Punta Cana resort zones, and upscale Santo Domingo neighborhoods like Piantini and Naco. These premium locations command top prices due to luxury amenities, security, and established infrastructure.
Budget-friendly regions include Santiago, San Pedro de Macorís, Santo Domingo Este, and rural locations throughout the interior. These areas offer significant value for buyers seeking affordability while maintaining access to essential services.
Emerging and fast-appreciating markets include Punta Cana's expanding zones, Las Terrenas, and north coast communities like Puerto Plata. These locations combine current affordability with strong growth potential driven by tourism development and infrastructure improvements.
The coastal regions generally command premium prices over interior locations, with beachfront properties carrying the highest valuations across all market segments.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the smartest buying strategies for different goals?
Optimal property choices in the Dominican Republic depend on your primary objective as of September 2025.
For full-time living, gated communities in Sosúa, Cabarete, Cap Cana, or upscale Santo Domingo neighborhoods provide safety, amenities, and social infrastructure essential for comfortable daily life. These locations offer established expat communities and reliable services.
Short-term rental investors should focus on Punta Cana, Las Terrenas, and Cabarete/Sosúa, where high tourist volume generates 6-10% annual returns. Proximity to beaches, airports, and tourist attractions drives consistent occupancy rates.
Long-term rental strategies work best in Santo Domingo and Santiago, where business professionals and expat tenants provide stable occupancy with lower management requirements. These markets offer predictable rental income with minimal seasonal variation.
Resale-focused buyers should target Punta Cana's expanding zones, Las Terrenas, Piantini/Naco in Santo Domingo, and emerging north coast towns where consistent appreciation and market liquidity support future sales opportunities.
How have house prices changed recently?
Dominican Republic house prices have shown strong upward momentum in recent years through September 2025.
Over the past year to May 2025, apartments increased 10.7% while houses rose 11.6%, demonstrating robust market performance. This growth reflects continued international interest and limited supply in desirable locations.
Five-year price growth reaches 59.8% in nominal terms, or 42.3% after adjusting for inflation, indicating real value appreciation beyond general price increases. Ten-year growth shows even more dramatic gains at 122.9% nominal and 31.8% real terms.
Tourist-focused regions like Punta Cana and Las Terrenas have outperformed the national average, while urban markets in Santo Domingo have shown steady but more moderate appreciation. Rural and interior markets have lagged behind coastal and urban areas.
Current price momentum suggests sustained demand from both international buyers and local investors, supported by continued tourism growth and infrastructure development.
What do price forecasts predict for the coming years?
Dominican Republic real estate price forecasts indicate continued growth through the next decade.
Through the end of 2025, property prices are expected to rise 7-12% based on current market momentum and sustained international demand. Tourist hotspots are likely to exceed national averages due to limited beachfront inventory.
The five-year forecast from 2026-2030 projects annual appreciation of 3-8% per year, with tourist destinations continuing to outperform national averages. This growth reflects ongoing infrastructure development and increasing international recognition of Dominican Republic real estate value.
Long-term projections from 2030-2035 suggest continued growth, possibly moderating as the market matures and new supply comes online to meet demand. However, the country is expected to maintain its competitive position relative to regional peers.
These forecasts assume continued political stability, tourism growth, and infrastructure development supporting the overall real estate market expansion.
It's something we develop in our Dominican Republic property pack.
How do Dominican Republic prices compare internationally?
Dominican Republic property prices offer significant value compared to similar international markets in September 2025.
House prices and rental yields in the Dominican Republic are generally more affordable than most Caribbean destinations and US resort areas, while generating higher yields than many Western countries. Cost per square foot in tourist regions ($150-$250) is substantially lower than the Bahamas, Barbados, or US and Canadian resort cities.
Rental yields typically range from 6-10% in tourist-focused areas, exceeding most Western urban market averages of 3-5%. This yield advantage reflects lower purchase prices combined with strong rental demand from international tourists.
Compared to other Latin American markets, the Dominican Republic offers competitive pricing with better infrastructure and tourism support than many regional alternatives. The country's proximity to North American markets and established tourism industry provide advantages over more remote or less developed destinations.
Transaction costs and ownership expenses remain moderate compared to European or North American standards, while offering clearer legal frameworks and more straightforward processes for international buyers than many emerging markets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Dominican Republic real estate market offers exceptional opportunities for both investors and residents, with property prices averaging $1,760 per square meter and strong appreciation potential of 7-12% expected through 2025.
Whether you're seeking a vacation home in Punta Cana, an investment property in Las Terrenas, or a permanent residence in Santo Domingo, the Dominican Republic provides diverse options at competitive prices compared to other Caribbean and international markets.
Sources
- Simply Dominican - Types of Properties Available
- Palm Hills - Typical Houses Guide
- The Latin Investor - Average House Dominican Republic
- Ocean Side Realty - Areas for Foreigners
- Noriega Group - Best Investment Areas
- Blue Sail Realty - Dominican Republic Real Estate
- Global Property Guide - Price History
- Dominican Today - Closing Costs
- The Latin Investor - Dominican Property Taxes
- The Latin Investor - Price Forecasts