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Thinking of buying a property in Cabarete? You're not alone!
Many people are captivated by Cabarete's laid-back beach vibe and dream of owning a beachfront villa or a stylish condominium there.
Does it make sense, though? Are property prices increasing in Cabarete? Is it expensive? Should I buy property in the town center or near Kite Beach? What about the taxes? Which places offer rental yields exceeding 7%?
We've figured it out for you.
At TheLatinvestor, we know this market inside and out. Actually, we've organized all our findings in a pack. Get it now.
In this article, we'll provide you with helpful information.
How is the property market in Cabarete?
Are property prices rising or falling? Let's consult the most recent data and stats.
In Cabarete, you can find a variety of properties for sale.
These include beachfront condos offering stunning ocean views, cozy residential houses tucked within lush surroundings, spacious villas with private pools for a luxurious lifestyle, and vacant land plots perfect for building your dream home.
Whether you're looking for a relaxing retreat or an investment opportunity, Cabarete offers a diverse range of property options to suit different preferences and budgets.
Should you buy or rent?
(In case you want it for yourself, not for rental purposes)
Whether you're considering settling in Cabarete or already living there, you might be thinking about the pros and cons of buying versus renting a property in this coastal Dominican town.
Usually, buying is better than renting in Cabarete due to the opportunity to capitalize on the area's strong tourism industry and potential for long-term appreciation.
On the flip side, renting offers greater flexibility if that's what you prefer.
Property prices in Cabarete
On average, according to the updated data from Central Bank of the Dominican Republic, purchasing a property in Cabarete should cost you around $2,150 per square meter.
Obviously, there is a huge spread. An apartment in Cabarete might have a different price per square meter than a villa in Sosua. We actually give you a more detailed breakdown in our pack for buying property in Cabarete and in the Dominican Republic.
To put things in perspective, it means that, instead of buying an apartment in New York, you can get 6 properties in Cabarete.
Also, housing prices in Cabarete are 2% cheaper than in Puerto Plata.
The most expensive neighbourhoods in Cabarete are probably the gated communities of Kite Beach and Sosua, while the cheapest areas are likely to be the outskirts of Cabarete.
First and foremost, we have to acknowledge that the Dominican Republic offers, today, a stable political and economic climate. The last Fragile State Index that has been reported for this place is 62.8.
It is something to have in mind when wondering whether it's a good investment to buy a property in Cabarete.
If we look at the IMF’s forecasts, we can see that the Dominican Republic's economy is expected to soar by 21.7% in the coming 5 years, resulting in an average GDP growth rate of 4.3%.
If you intend to invest in real estate in Cabarete it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.
Also, in the Dominican Republic, the average GDP per capita has changed by 10.6% over the last 5 years. It's far beyond the global average.
These are positive signals showing that property prices in Cabarete might increase in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in the Dominican Republic right now.
Buying property in Cabarete
It can be difficult to buy property in Cabarete due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Cabarete and in the Dominican Republic.
In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.
Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.
This is the step-by-step process to purchase a property in Cabarete:
- Research the Cabarete real estate market and set a budget.
- Find a reputable local real estate agent who specializes in Cabarete properties.
- Tour available properties in Cabarete to find your preferred one.
- Review and negotiate the offer with the seller, considering local market factors.
- Hire a Dominican Republic attorney to conduct due diligence, including title search and property background checks.
- Sign a purchase agreement outlining the terms and conditions of the sale.
- Pay a deposit (usually 10% of the property value) to secure the property.
- Obtain a Dominican Republic tax identification number (RNC).
- Transfer funds to your local bank account in the Dominican Republic for the purchase.
- Complete the property title search, known as "Certificado de Título."
- Finalize the purchase contract and get it notarized by a Dominican notary public.
- Register the property with the Dominican Republic's Title Registry Office (Registro de Títulos) to complete the legal transfer.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in the Dominican Republic.
Make a profitable investment in Cabarete
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Where to find a property
If you're beginning your property search in Cabarete, these websites can assist you:
- Point 2 - A real estate marketplace offering homes, apartments, and commercial properties for sale and rent in the Dominican Republic and other countries.
- Select Caribbean Properties - With 22 years of experience on the North Coast of the Dominican Republic, Select Caribbean Properties is an independent realtor.
- Dominican Realty Group - A real estate agency in the Dominican Republic that specializes in apartments, villas, lots, farms, and building proposals.
- 7th Heaven Properties - Offering a diverse selection of real estate listings in the Dominican Republic, including residential and commercial properties.
- Coldwell Banker Prime Realty - Providing a comprehensive selection of condos, homes, and luxury properties, backed by the expertise of the Coldwell Banker brand.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in the Dominican Republic.
What you can get
As mentioned before, the average price per sqm in Cabarete is $2,150. The cost of a one-bedroom property (60 sqm) is about $129,000, and a two-bedroom (85 sqm) would be around $183,000.
However, the cost of properties will fluctuate depending on both their characteristics and their location.
Top neighborhoods in Cabarete typically come with higher price tags. Consider a house in Cabarete Beach, which could carry a price of approximately $410,000, while an apartment at Sea Horse Ranch might have a price tag of $230,000.
On the other hand, some places are more affordable. You could find a residence in Los Charamicos for $210,000 or a residence in La Cienaga that's priced at $140,000.
Find a more detailed breakdown in our full pack for buying property in the Dominican Republic.
Here are the main pitfalls specific to buying a property in Cabarete, Dominican Republic:
- Non-resident restrictions: Foreign buyers may face limitations on certain property types or require government approval.
- Coastal regulations: Strict rules for beachfront properties may affect development plans and access rights.
- Hurricane risks: Cabarete is prone to hurricanes, necessitating thorough insurance coverage.
- Title discrepancies: Ensuring clear and unencumbered property titles can be challenging due to historical issues.
- Infrastructure limitations: In some areas, limited access to reliable utilities and services may affect livability.
- Land occupation issues: Informal land settlements can lead to disputes and legal complexities.
- Currency exchange risks: Currency fluctuations may impact property costs for foreign buyers.
- Cultural differences: Understanding local customs and language barriers can affect communication and transactions.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Dominican Republic Property Pack
Living in Cabarete
The life in Cabarete is an ideal blend of adventure and relaxation, offering a laid-back Caribbean lifestyle with plenty of outdoor activities to enjoy.
Cost of living
Cabarete is an affordable destination for travelers, with a cost of living that is lower than many other Caribbean locations. Groceries, restaurants, and housing are all relatively inexpensive, especially when compared to other beach towns in the region.
Here are some examples to better understand the cost of living in Cabarete, Dominican Republic:
- Morir Soñando (traditional Dominican orange juice and milk drink): $2 at a local café.
- Rent for a one-bedroom apartment in Cabarete Beach area: $800/month.
- La Bandera (Dominican national dish) for two at a local eatery: $30.
- 1.5-liter bottle of Presidente beer: $2 at a supermarket.
- Electricity bill for an 85m² apartment using Edenorte: $90/month.
- Monthly membership at Energy Fitness in Cabarete: $60.
- Ticket to a movie at Plaza San Juan Shopping Center: $7.
- Café Santo Domingo coffee (500g) at Janet's Supermarket: $5.
We want to show information in an easy-to-understand way. So, we made a table that shows the different neighborhoods in Cabarete. For yields, prices and rents, check our property pack.
El Encuentro is a tranquil neighborhood located near the famous surf spot Playa Encuentro, attracting surfers and beach lovers. It offers a laid-back atmosphere and stunning ocean views.
Proximity to Playa Encuentro, peaceful ambiance, great for surfers.
Less commercial amenities, limited nightlife options.
Sea Horse Ranch
Sea Horse Ranch is an upscale gated community known for its luxurious villas and equestrian facilities. The neighborhood boasts well-maintained green spaces and top-notch security.
Luxurious living, equestrian amenities, high-security standards.
Expensive real estate, restricted access for non-residents.
The Bay Area is the heart of Cabarete, bustling with restaurants, bars, and shops along Cabarete Beach. It offers a vibrant nightlife and easy access to water sports.
Central location, lively nightlife, diverse dining options.
Noisy at times, crowded during peak tourist seasons.
Perla Marina is a gated community with a mix of permanent residents and vacation rentals. It provides a more secluded and tranquil environment compared to the bustling areas.
Quiet atmosphere, gated security, close to Playa Entrada.
May feel isolated, limited shopping and dining choices.
La Rinconada is a residential area with a mix of locals and expatriates. It offers a peaceful living environment and is relatively close to the town center.
Quiet residential area, diverse community, convenient access to amenities.
Less beachfront properties, limited public transportation.
La Ciénaga is a rural neighborhood with lush green landscapes and a more traditional Dominican atmosphere. It appeals to nature lovers and those seeking an authentic local experience.
Serene countryside setting, closer to nature, cultural immersion.
Limited modern facilities, longer commute to the town center.
Cabarete Centro is the central commercial area of Cabarete, bustling with shops, restaurants, and services. It is located close to Cabarete Beach and attracts both tourists and locals.
Abundance of amenities, vibrant atmosphere, beach proximity.
Can be noisy and crowded, higher real estate prices.
Los Charamicos is a lively neighborhood known for its vibrant nightlife and budget-friendly accommodations. It offers a more affordable option for visitors and is close to the beach.
Great for budget travelers, lively nightlife, proximity to the beach.
Can be noisy at night, basic infrastructure, limited luxury amenities.
Life in Cabarete
Cabarete is a thriving tourist destination, with many businesses catering to visitors. The local economy is also driven by agriculture, fishing, and light manufacturing.
What expats usually like the most in Cabarete is the laid back atmosphere and the abundance of outdoor activities to enjoy, such as kiteboarding, windsurfing, and horseback riding.
Cabarete has limited access to healthcare, with the nearest hospital being located in Puerto Plata.
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Renting out in Cabarete
This section is for you if you want to buy property solely for renting out and earning income.
Tenant Profiles in Cabarete
If you decide to buy and rent out to long-term tenants, you should target expats, retirees, and young professionals looking for a tranquil living experience in a beach-side Caribbean town. For short-term tenants, you should target tourists and travelers looking for a vibrant and fun atmosphere.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Condo in Cabarete
Beachfront location, water sports
$700 - $1200
Villa in Cabarete
Private pool, tranquil surroundings
$1200 - $2500
Apartment in Cabarete
Working professionals, students
Proximity to town center
$500 - $1000
Studio in Cabarete
Solo travelers, budget-conscious
Affordable, convenient location
$300 - $600
Beachfront Property in Cabarete
Luxury travelers, honeymooners
Exclusive access to the beach
$1500 - $4000
Kite Surfing Retreat in Cabarete
Water sports enthusiasts
Close to kite surfing spots
$800 - $1500
Resort Apartment in Cabarete
$1000 - $2200
Nowadays, Cabarete offers some opportunities in terms of rental yields. Actually, you can easily achieve 7 or 8% due to the high demand for vacation rentals in the area.
Cabarete is known for its vibrant nightlife and beachfront properties, so rental yields for these types of properties tend to be higher than other types. Additionally, properties located near popular tourist attractions, such as kite surfing and windsurfing spots, can also provide excellent rental yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
You could also decide to rent short-term to tourists visiting Cabarete for its world-renowned kiteboarding and windsurfing as well as other adventure activities. Additionally, Cabarete is a popular destination for vacationers looking to relax on its beautiful beaches and explore the local culture.
If you decide to go with that option, look for properties in the El Encuentro and La Punta neighborhoods, which are both close to the beach and have a high demand for short-term rentals. These neighborhoods are also in close proximity to the town center, where many restaurants, shops, and other amenities are located.
Currently, there are approximately 2,070 active Airbnb listings in Cabarete, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $110.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Cabarete can make around $1400 per month. Also, the average occupancy rate is estimated at 62%.
Is it worth buying real estate in Cabarete then?
Buying a property in Cabarete can be a fantastic choice for savvy investors and lifestyle seekers, but it's not a one-size-fits-all decision.
If you're looking to invest in a place with promising growth potential, Cabarete's stable political and economic climate, coupled with its booming tourism industry, can offer excellent returns in the long run. The low cost of living, diverse property options, and the allure of a laid-back Caribbean lifestyle make Cabarete an appealing destination for retirees, budget-conscious individuals, and adventure enthusiasts alike.
Plus, the potential for high rental yields, especially in beachfront properties and those near tourist attractions, sweetens the deal for investors seeking extra income. However, be aware of challenges like non-resident restrictions, coastal regulations, and hurricane risks, which could complicate property ownership. It's crucial to do your due diligence, seek professional advice, and understand the local market thoroughly before taking the plunge.
On the flip side, Cabarete may not be the right fit for everyone. If you're uncomfortable with navigating foreign regulations, dealing with potential title discrepancies, or managing currency exchange risks, buying property here might not be your best bet.
Moreover, the laid-back Caribbean lifestyle may not suit those who prefer a more urban or fast-paced environment. And while Cabarete offers a lower cost of living compared to many other Caribbean destinations, it may not be cheap enough for those seeking ultra-budget options.
So, it all boils down to your goals and willingness to embrace the local culture and challenges. In essence, Cabarete can be a fantastic investment or lifestyle choice, but it's vital to weigh the pros and cons carefully, considering your unique circumstances and preferences, before making the decision to buy property in this tropical paradise.
Make sure you understand the real estate market in Cabarete
Don't rush into buying the wrong property in the Dominican Republic. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.