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Property prices in Cabarete are rising steadily as we reach mid-2025, driven by strong tourism growth and international demand. The market has experienced consistent appreciation of 8-10% annually over the past three years, with beachfront properties outperforming inland options.
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Cabarete's property market is experiencing robust growth with prices rising 8-10% annually, driven by tourism infrastructure investments and strong international buyer demand.
Beachfront properties command a 15% premium over inland options, with rental yields averaging 8% annually across prime locations.
| Market Metric | Current Value (2025) | Trend |
| Average Price per m² | $2,150 USD | ↑ 8-10% annually |
| Beachfront Premium | 15% above market rate | ↑ Strong demand |
| Average Rental Yield | 8% annually | ↑ Tourism growth |
| Top Appreciation Area | Encuentro Beach | ↑ 10-15% annually |
| Price vs. 5 Years Ago | +30-40% increase | ↑ Consistent growth |
| Foreign Buyer Impact | High influence | ↑ Driving prices up |
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.
What are the current average property prices in Cabarete as of June 2025?
As of June 2025, Cabarete's residential property market shows strong pricing levels across different property types.
The average price per square meter for residential properties in Cabarete reaches approximately $2,150 USD. One-bedroom units typically cost around $129,000, while two-bedroom units range from $175,000 to $200,000 depending on location and amenities.
In local currency terms, apartments command a median price of DOP 142,407 per square meter (approximately $2,150 USD per m²), while houses are priced at DOP 118,755 per square meter (around $1,800 USD per m²). The rental market demonstrates robust activity with two-bedroom apartments averaging $1,300 monthly, ranging from $800 to $1,750 based on size and features.
Properties with ocean views command at least a 15% price premium over comparable inland properties, reflecting Cabarete's status as the "Water Sports Capital of the Caribbean." This premium is particularly pronounced for beachfront properties, which are considered luxury items due to their scarcity and high demand from international buyers.
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How much have property prices increased in Cabarete over the past three years?
Cabarete's property market has experienced substantial price appreciation over the recent period, with annual growth rates consistently outperforming many regional markets.
Residential property prices in Cabarete have increased by 8-10% annually over the past three years, representing one of the strongest appreciation rates in the Dominican Republic. Specifically, prices rose by at least 6% in 2024, with a further 4% increase projected for 2025.
The cumulative appreciation over the last five years reaches 30-40% for beachfront and premium properties, significantly outpacing inflation and general economic growth. This consistent upward trajectory reflects strong underlying demand fundamentals and limited supply of prime beachfront locations.
Beachfront properties have seen the strongest performance with 10-15% increases over the past three years, while inland properties have appreciated at a more modest but still healthy 6-8% annually. This differential reflects the premium placed on ocean access and the limited availability of new beachfront development opportunities.
The growth trajectory has been supported by robust tourism recovery post-pandemic, with visitor arrivals increasing by 15% in the past year alone, driving both direct property purchases and rental investment demand.
Which neighborhoods in Cabarete are seeing the fastest price appreciation in 2025?
Several specific areas within Cabarete are experiencing particularly rapid price growth, driven by unique characteristics and development patterns.
Encuentro Beach leads the appreciation rankings, experiencing 10-15% annual price increases due to its combination of surf culture and eco-friendly developments. This area has become synonymous with sustainable luxury living, attracting environmentally conscious buyers willing to pay premium prices.
Cabarete East follows closely with 8-12% annual appreciation, driven by new developments and its tranquil atmosphere that contrasts with the busier central areas. The combination of modern amenities and peaceful surroundings has made this neighborhood particularly attractive to international retirees and remote workers.
Pro Cab maintains strong growth at 8-10% annually, benefiting from its proximity to both beach access and vibrant nightlife. This location offers the best of both worlds for buyers seeking an active lifestyle combined with convenience.
Hispaniola Residencial rounds out the top performers with 7-9% annual appreciation, supported by well-maintained infrastructure and a strong expatriate community that provides both social connections and property value stability.
What types of properties are experiencing the biggest price surges in Cabarete?
Different property categories in Cabarete are showing varying levels of price appreciation, with certain types significantly outperforming the market average.
| Property Type | Price Premium | Annual Growth | Key Drivers |
| Ocean View Properties | +15% above market | 10-15% | Scarcity and luxury demand |
| Properties with Pools | +18% above similar | 12-14% | Luxury amenity preference |
| Eco-Friendly Homes | +10-12% premium | 9-11% | Sustainability trend |
| Beachfront Villas | +20-25% premium | 10-15% | Limited supply, high demand |
| Vacation Rentals | Market rate | 8-10% | Tourism growth |
| New Developments | Varies by location | 6-12% | Modern amenities |
| Condominiums | Market aligned | 7-9% | Maintenance convenience |
How are current mortgage rates affecting property buying in Cabarete in 2025?
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Mortgage conditions in the Dominican Republic present both opportunities and challenges for property buyers in Cabarete as of mid-2025.
Current mortgage rates in the Dominican Republic range from 7% to 8% for foreign buyers, which is higher than traditional North American and European markets but competitive within the Caribbean region. Local banks typically offer loan-to-value ratios of 50% to 70% for non-resident foreigners, requiring substantial down payments.
The loan terms vary based on borrower age, with younger buyers potentially securing 20-30 year amortizations while those over 60 may be limited to 15-year terms. Banks require younger co-signers for borrowers over 70 years old, reflecting conservative lending practices.
Despite higher rates compared to developed markets, many investors find that Cabarete's strong rental yields of 8% annually can support positive cash flow even with current mortgage costs. This calculation becomes particularly attractive for beachfront properties that command premium rental rates from tourists and seasonal residents.
The Dominican Republic's stable economic environment and strong GDP growth projections of 5% for 2025 have maintained lender confidence, keeping credit available for qualified foreign buyers seeking to enter the Cabarete market.
What impact is tourism growth having on Cabarete property values in 2025?
Tourism growth serves as the primary catalyst driving Cabarete's property market appreciation, with measurable impacts across multiple sectors.
Tourism arrivals to Cabarete have increased by 15% over the past year, creating direct upward pressure on both property values and rental rates. This growth reflects the area's successful positioning as the "Water Sports Capital of the Caribbean" and its appeal to adventure tourism enthusiasts.
Recent infrastructure investments including road improvements, utility upgrades, and community amenities have significantly enhanced accessibility and living standards, directly boosting property values. These developments have made Cabarete more attractive to both tourists and permanent residents seeking modern conveniences.
The influx of visitors has created robust demand for vacation rental properties, with many investors purchasing specifically to capitalize on short-term rental opportunities. Properties in prime locations near beaches and water sports facilities command particularly strong rental premiums during peak seasons.
New luxury developments like Eden Cabarete and Icon Cabarete are transforming the real estate landscape, catering to affluent buyers and establishing new price benchmarks for premium properties. These projects demonstrate developer confidence in the market's long-term growth potential.
The tourism boom has also attracted international businesses and services, creating employment opportunities that support local purchasing power and residential demand from both expatriates and upwardly mobile Dominicans.
How do Cabarete property prices compare to five and ten years ago?
Historical price analysis reveals dramatic appreciation in Cabarete's property market over both medium and long-term timeframes.
Comparing current prices to five years ago (2020), average property values have increased by 30-40%, representing one of the strongest appreciation periods in the market's history. This growth reflects the post-pandemic recovery in tourism and increased international interest in Caribbean real estate.
Looking back ten years to 2015, current property prices have more than doubled, with some beachfront properties showing even greater gains. Average prices per square meter were below $1,000 in most areas in 2015, compared to today's $2,150 average, representing over 115% appreciation.
The most dramatic gains have occurred in beachfront properties, which have tripled or quadrupled in value over the ten-year period. This exceptional performance reflects the fundamental scarcity of oceanfront land and the global trend toward coastal lifestyle preferences accelerated by the pandemic.
Even properties in secondary locations have experienced substantial gains, with inland properties doubling in value over the decade. This broad-based appreciation demonstrates the strength of Cabarete's overall market fundamentals rather than isolated premium segment growth.
The consistent upward trajectory over both timeframes indicates strong underlying demand drivers that have persisted through various economic cycles, supporting confidence in continued future appreciation.
What are the property price forecasts for Cabarete through 2030?
We made this infographic to show you how property prices in the Dominican Republic compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Market forecasts for Cabarete indicate continued appreciation through the remainder of the decade, though at potentially moderating rates compared to recent exceptional growth.
Short-term forecasts for 2025-2027 suggest continued annual price increases of 3-8%, depending on property type and location. Beachfront properties are expected to maintain higher appreciation rates due to supply constraints, while inland properties may see more moderate but steady growth.
Medium-term projections through 2030 anticipate sustained appreciation driven by ongoing tourism growth, infrastructure improvements, and limited beachfront supply. However, growth rates may moderate from recent double-digit levels to more sustainable 5-7% annually as the market matures.
Long-term forecasts through 2035 remain positive, supported by the Dominican Republic's strong economic fundamentals including projected GDP growth of 4.6% annually over the next five years. Continued infrastructure investment and tourism development should provide ongoing support for property values.
Key factors supporting continued appreciation include the country's stable political environment, pro-investment policies, and Cabarete's unique position as a premier water sports destination. Limited beachfront land availability will continue to constrain supply of the most desirable properties.
Potential risks to forecasts include global economic slowdowns that could reduce international demand, currency fluctuations affecting foreign buyer purchasing power, and the possibility of overbuilding in non-premium segments creating temporary oversupply conditions.
How are international buyers influencing Cabarete's property market in 2025?
International buyers play a dominant role in shaping Cabarete's property market dynamics, representing a significant portion of transactions and price determination.
Foreign buyers, particularly from North America and Europe, constitute the majority of purchasers in the premium and beachfront segments, attracted by simplified purchase processes and investment incentives offered by the Dominican Republic government. This international demand serves as a primary driver of price appreciation.
The influx of foreign capital has enabled developers to pursue higher-end projects with superior amenities and finishes, establishing new quality standards that benefit the entire market. International buyers' willingness to pay premium prices for quality and location has elevated overall market expectations.
Short-term rental markets have been particularly impacted by international investment, with many foreign buyers purchasing specifically for Airbnb and vacation rental purposes. This strategy capitalizes on Cabarete's tourism appeal while generating income to offset ownership costs.
Currency advantages have periodically favored international buyers, particularly those from strong currency countries during periods of peso weakness. However, the Dominican peso's recent stability has maintained consistent pricing for foreign purchasers.
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What effect did the 2025 Dominican Republic tax reform have on Cabarete property prices?
The 2025 tax reform introduced significant changes to property taxation that have had measurable but limited impacts on Cabarete's market dynamics.
The most significant change lowered the property tax exemption threshold to RD$5,025,380.75 (approximately $79,290 USD), with properties above this value now subject to a 1% annual tax rate. This change affects a substantial portion of Cabarete's property inventory, particularly beachfront and premium properties.
Despite increased tax burdens on mid- and high-end properties, market demand has remained strong due to continued foreign interest and high rental yields that help offset additional costs. Many investors view the tax as acceptable given Cabarete's appreciation potential and income generation capabilities.
Retirement property tax exemptions continue to attract older international buyers, providing a competitive advantage for the Dominican Republic compared to other Caribbean markets. This demographic represents a significant buyer segment in Cabarete's market.
Some market observers noted temporary hesitation among buyers immediately following the reform's implementation, but activity levels quickly normalized as participants adjusted to the new cost structure. The reform's impact has been absorbed without significantly dampening transaction volumes.
Long-term effects may include slight pressure on appreciation rates for properties just above the exemption threshold, but strong underlying demand fundamentals have prevented any material price corrections in response to the tax changes.
What are the main risks that could cause Cabarete property prices to decline?
While Cabarete's property market maintains strong fundamentals, several risk factors could potentially impact future price appreciation or cause corrections.
Overbuilding in non-beachfront areas represents the most immediate risk, as a surge in inland or non-premium developments could create oversupply conditions and downward price pressure in those specific segments. Developers' enthusiasm for the market could potentially outpace demand absorption capacity.
Global economic slowdowns pose significant risks given Cabarete's dependence on international buyers from North America and Europe. A recession in major source countries could reduce foreign demand and slow price growth, particularly affecting the premium segment most reliant on international capital.
Regulatory changes present ongoing uncertainty, with potential future increases in property taxes or stricter short-term rental regulations potentially impacting investor yields and sentiment. Government policy shifts could alter the investment attractiveness equation for foreign buyers.
Natural disaster risks, while relatively low given Cabarete's location, could affect property values if a major hurricane or environmental event caused significant damage. Climate change concerns may also influence long-term buyer confidence in coastal properties.
Currency fluctuations could impact foreign buyer purchasing power, particularly if the US dollar weakens significantly against other major currencies or if the Dominican peso strengthens substantially, making properties more expensive for international purchasers.
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.
Based on comprehensive market analysis and current trends, property prices in Cabarete are clearly going up significantly. Yes a lot.
The evidence overwhelmingly supports continued price appreciation driven by strong tourism growth, limited beachfront supply, robust international demand, and supportive economic fundamentals. While risks exist, the underlying drivers of Cabarete's market strength appear sustainable through the medium term.
Sources
- TheLatinvestor - Cabarete Real Estate Market Statistics
- TheLatinvestor - Cabarete Property Investment Guide
- Properstar - Cabarete House Prices
- Blue Sail Realty - Market Trends
- Blue Sail Realty - Tourism Impact
- TheLatinvestor - Price Forecasts
- Global Property Guide - Dominican Republic
- TheLatinvestor - Dominican Republic Forecasts
- Cabarete Real Estate - Market Outlook
- Auxadi - Tax Reform 2025