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Property prices in Cabarete are expected to continue rising in 2026, driven by strong tourism growth and limited inventory.
The Cabarete real estate market has experienced consistent growth over the past five years, with condo prices reaching around $2,150 USD per square meter and villa prices averaging $1,800 USD per square meter as of September 2025. Multiple factors indicate that this upward trend will continue into 2026, including new construction projects, steady population growth, and a robust tourism sector that supports both short-term and long-term rental markets.
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.
Cabarete property prices are projected to increase by 6-8% in 2026, following consistent annual growth of 7-10% over the past decade.
Strong tourism growth, new construction projects, and favorable rental yields support continued price appreciation in the market.
| Market Indicator | Current Status (2025) | 2026 Projection |
|---|---|---|
| Average Condo Price/m² | $2,150 USD | $2,300-$2,400 USD |
| Average Villa Price/m² | $1,800 USD | $1,950-$2,100 USD |
| Annual Price Appreciation | 8% (2025 projected) | 6-8% |
| Short-term Rental Yield | 7-12% | 7-12% (stable) |
| Tourism Growth Rate | 7-9% | 10-15% |
| New Units Completing | Limited supply | 350+ units |
| Days on Market | 45-60 days | 40-55 days |
What are the current property prices per square meter in Cabarete and how have they changed over five years?
As of September 2025, condos in Cabarete average $2,150 USD per square meter, while villas and houses cost around $1,800 USD per square meter.
Luxury beachfront villas command higher prices, reaching between $2,000 and $3,000 USD per square meter depending on location and amenities. The Cabarete condo market has experienced steady growth over the past five years, with total price increases of approximately 30-40% since 2020.
The annual percentage changes show an accelerating trend: 7% in 2021, 8% in 2022, 9% in 2023, and 10% in 2024. For 2025, market analysts project an 8% increase, indicating some moderation in the growth rate while still maintaining strong appreciation.
This consistent upward trajectory reflects Cabarete's growing popularity among international buyers and investors seeking beachfront properties in the Dominican Republic.
How many new construction projects will be completed in Cabarete by 2026?
At least 10 major residential and commercial developments are scheduled for completion by the end of 2026 in Cabarete.
Notable projects include The Shore, Eden Cabarete, NOMAD, Luxury Pre-Construction Apartments at Kitebeach, and Cabarete Country Club. The Cabarete Country Club development alone will add over 350 units to the market, representing a significant increase in available inventory.
These developments include a mix of condominiums, townhouses, and luxury villa complexes, primarily targeting the high-end segment of the market. Additional projects like pre-construction studios near the beach and gated community developments will contribute several hundred more units to the total supply.
The total number of new units expected to enter the Cabarete property market by 2026 exceeds 500, marking one of the largest construction booms in the area's recent history.
What is the population growth rate in Cabarete and what's the 2026 projection?
Cabarete's population was 16,148 as of 2022, with a historical annual growth rate of 1.0% to 1.5% over the past decade.
This steady population increase reflects the town's growing appeal as both a permanent residence and vacation destination. The growth is driven by both Dominican nationals relocating from other regions and international expatriates choosing Cabarete as their home base.
Based on the consistent growth pattern observed between 2012 and 2022, demographic projections indicate Cabarete's population will reach approximately 17,000 to 17,300 residents by 2026. This represents a moderate but sustained expansion that supports continued demand for housing and commercial properties.
The population growth contributes to the underlying demand for residential properties in the Cabarete real estate market, particularly in the mid-range and affordable housing segments.
What are the current rental yields for short-term and long-term properties in Cabarete?
Short-term rentals in Cabarete generate annual yields between 7% and 12%, with peak season performance reaching 8-10% consistently.
| Rental Type | Annual Yield Range | Peak Season Performance |
|---|---|---|
| Short-term Rentals (Airbnb/VRBO) | 7-12% | 8-10% |
| Long-term Rentals | 6-8% | Stable year-round |
| Beachfront Properties | 9-12% | 10-14% |
| Town Center Properties | 6-9% | 7-10% |
| Luxury Villas | 8-11% | 10-13% |
Long-term rental properties typically generate more modest but stable returns of 6-8% annually. The rental yield trend from 2022 to 2025 has remained relatively stable or shown slight increases, driven by strong tourism demand and limited rental inventory.
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What is the trend in property transaction volumes over the past five years?
Property transaction volumes in Cabarete have increased by an average of 5-8% annually over the past five years.
The market experienced peak activity in 2023 and 2024, driven by increased foreign investment and growing recognition of Cabarete as a prime real estate destination. Transaction volumes reached their highest levels during this period, supported by favorable exchange rates and attractive property values compared to other Caribbean markets.
2025 has shown a slight slowdown in transaction volume growth due to tightening inventory levels and rising prices that have priced out some buyers. Despite this moderation, the overall trend remains positive with sustained buyer interest from international investors.
The transaction volume increases reflect both the growing number of available properties and expanded buyer interest from North American and European markets seeking vacation homes and investment properties in the Dominican Republic.
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What are the current mortgage interest rates for foreign buyers in the Dominican Republic?
As of September 2025, foreign buyers can access USD-denominated loans at 8-10% interest rates and Dominican peso loans at 13-14% rates.
USD loans are generally preferred by international buyers due to the significantly lower interest rates and reduced currency risk. Most foreign investors opt for these USD-denominated mortgages when financing property purchases in Cabarete.
The five-year historical average for USD loans has ranged between 9-12%, making current rates relatively attractive for borrowers. Dominican peso loans have consistently carried higher rates due to inflation considerations and currency volatility factors.
These competitive mortgage rates, particularly for USD loans, support continued foreign investment in the Cabarete property market and contribute to overall market accessibility for international buyers.
What are the average monthly rental prices by bedroom count in Cabarete?
One-bedroom properties in Cabarete rent for between $437 and $1,136 monthly, with an average annual increase of 7% since 2020.
| Property Type | Average Monthly Rent (USD) | Annual % Increase Since 2020 |
|---|---|---|
| 1-bedroom | $437-$1,136 | 7% |
| 2-bedroom | $1,300 | 6-8% |
| 3-bedroom | $593-$1,400 | 5-7% |
| Studio apartments | $350-$800 | 8% |
| 4+ bedroom villas | $1,500-$3,000 | 6-9% |
Two-bedroom properties average $1,300 per month with yearly increases of 6-8%, while three-bedroom units range from $593 to $1,400 monthly with 5-7% annual growth. The rental price increases reflect the strong demand for both short-term vacation rentals and long-term residential properties in Cabarete.
How does current inventory compare to the five-year average in Cabarete?
Current inventory levels in Cabarete are below the five-year average, with approximately 999 active short-term rental listings as of 2025.
Luxury beachfront properties show particularly low inventory levels, creating a supply-demand imbalance that supports price appreciation. The limited inventory reflects high absorption rates where properties sell quickly after listing, often within 45-60 days.
New construction has not kept pace with demand, contributing to the inventory shortage that characterizes the current Cabarete real estate market. This situation benefits existing property owners through increased values and rental rates.
The tight inventory situation is expected to persist into 2026, even with new construction projects coming online, due to continued strong buyer interest and limited developable beachfront land.
How long do properties typically stay on the market in Cabarete?
Properties in Cabarete typically remain on the market for 45-60 days in 2025, significantly down from 90+ days in 2019.
This reduction in market time reflects increased buyer demand and limited inventory that creates a more competitive purchasing environment. Well-priced properties often receive multiple offers, particularly those with beachfront access or premium locations.
The trend shows consistent annual decreases in days on market since 2020, indicating a seller's market where quality properties move quickly. Premium beachfront villas and modern condominiums tend to sell fastest, often within 30-45 days of listing.
It's something we develop in our Dominican Republic property pack.
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.
How has the Dominican peso performed against major currencies since 2019?
The Dominican peso has depreciated modestly against both the US dollar and euro since 2019, with projections indicating continued gentle decline through 2026.
| Year | DOP/USD Rate | DOP/EUR Rate | USD % Change | EUR % Change |
|---|---|---|---|---|
| 2019 | 52.5 | 58.0 | +3% | +4% |
| 2020 | 57.6 | 65.2 | +10% | +12% |
| 2021 | 56.4 | 62.9 | -2% | -3% |
| 2022 | 56.6 | 63.6 | +0.4% | +1% |
| 2023 | 59.1 | 66.3 | +4.5% | +4% |
| 2024 | 60.7 | 68.2 | +2.7% | +3% |
| 2025 | 60.3 | 68.3 | +1.99% | +5.57% |
The peso depreciation trend benefits foreign buyers by providing more purchasing power for USD and EUR-denominated investments. Projected trends through 2026 indicate stable depreciation of 2-3% annually against the dollar, with slight strengthening of the euro versus peso expected.
What is the projected tourism growth for Cabarete in 2026?
The north coast of the Dominican Republic expects 7-9% annual tourism growth, with Cabarete specifically projected to see 10-15% growth in 2026.
Major festivals including the Kite Festival and Jazz Festival are expected to drive surge periods with increased visitor numbers. Tourism projections indicate Cabarete will host over 250,000 total visitors in 2026, representing significant growth from current levels.
The tourism growth directly impacts the real estate market through increased demand for vacation rentals, hotel properties, and second homes. Cruise tourism to the north coast is also projected to increase by 9% in 2025, contributing to overall visitor growth.
This robust tourism outlook supports strong rental yields for property investors and continued appreciation in property values throughout the Cabarete market.
It's something we develop in our Dominican Republic property pack.
What do experts forecast for property value appreciation in Cabarete through 2026?
Historical property value appreciation in Cabarete has averaged 7-10% annually over the past ten years, with expert forecasts projecting continued growth through 2026.
For 2024, experts forecast 8% appreciation, followed by 7% in 2025, and 6-8% projected for 2026. This slight moderation in growth rates reflects market maturation while still maintaining strong performance compared to many international markets.
The appreciation forecasts are supported by fundamental market drivers including limited inventory, strong tourism growth, continued foreign investment, and infrastructure improvements in the Cabarete area. Expert consensus indicates the market will remain robust despite some cooling from the peak growth rates of 2023-2024.
These appreciation rates position Cabarete properties as attractive investments for both short-term gains and long-term wealth building strategies, particularly for international buyers benefiting from favorable exchange rates.
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 current market indicators and expert analysis, properties in Cabarete are very likely to become more expensive in 2026.
The combination of limited inventory, strong tourism growth, steady population increases, and continued foreign investment creates favorable conditions for property price appreciation of 6-8% in 2026.
Sources
- The LatinVestor - Cabarete Price Forecasts
- Properstar - Cabarete House Prices
- Blue Sail Realty - Cabarete Real Estate Opportunity
- The LatinVestor - Cabarete Property Market
- Dominican Today - Cabarete Tourism Strategy
- City Population - Cabarete Demographics
- AirROI - Cabarete Rental Market Report
- The Global Economy - Dominican Republic Mortgage Rates
- Numbeo - Cost of Living in Cabarete
- Dominican Today - Tourism Growth Statistics