Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Yes, the analysis of Cabarete's property market is included in our pack
What do the latest numbers reveal about Cabarete’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Cabarete, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Properties in Cabarete offer an average rental yield of 8%
In Cabarete, the average rental yield for properties is 8% per year.
This impressive yield is thanks to Cabarete's status as a top tourist hotspot, famous for its kiteboarding events and vibrant festivals. These attractions draw in a large number of visitors, boosting the demand for short-term rentals.
Over the past few years, Cabarete's real estate market has seen significant growth. The average price of condos has been climbing by 8-10% annually, showcasing the area's increasing allure and investment potential.
Investors are taking note of Cabarete's growing appeal, as the combination of high rental yields and rising property values makes it an attractive option.
With its unique blend of natural beauty and exciting events, Cabarete continues to be a prime location for real estate investment.
Sources: Blue Sail Realty, Cabarete Real Estate
2) Foreign investors make up 60% of property purchases in Cabarete
Foreign investors make up 60% of property purchases in Cabarete for several compelling reasons.
In the Dominican Republic, foreigners can buy real estate without restrictions, making Cabarete a hassle-free choice for international buyers. This open-door policy means investors can dive into the market without worrying about legal barriers, which is a major attraction.
Cabarete's real estate market is vibrant and diverse, offering everything from beachfront condos to luxurious villas. This variety suits different tastes and budgets, drawing in foreign buyers who are either looking for a vacation home or a solid investment.
The Dominican Republic sweetens the deal with enticing incentives for foreign investors, like reduced property taxes and exemptions from capital gains tax. These financial perks make investing in Cabarete not just appealing but also cost-effective.
Sources: Aparthotel, Blue Sail Realty, Simply Dominican
We have made this infographic to give you a quick and clear snapshot of the property market in the Dominican Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Cabarete property prices rose by at least 6% in 2024 and are expected to increase another 4% in 2025
In 2024, property prices in Cabarete rose by at least 6%, driven by the high demand for beachfront properties and limited availability.
Cabarete is a hotspot for tourists, and this influx has boosted short-term rental demand, especially near beaches and resorts. As more people look to invest in these prime locations, property prices naturally climb.
Looking to 2025, a projected 4% increase in property prices seems likely. New luxury resorts and amenities are under development, enhancing Cabarete's appeal and attracting affluent buyers.
This ongoing interest in Cabarete ensures a strong demand for beachfront properties, as investors seek out attractive opportunities.
With tourism on the rise, Cabarete continues to be a desirable destination, drawing in more investors who are eager to capitalize on the area's growth.
As the area develops, the appeal of Cabarete's real estate market is expected to grow, maintaining its status as a sought-after location.
Sources: Blue Sail Realty, TheLatinvestor.com
4) A two-bedroom apartment rents for an average of $1,300 monthly
In Cabarete, Puerto Plata, the average monthly rent for a two-bedroom apartment is $1,300.
This price sits comfortably between the range of $800 to $1,750, which was typical in 2023 and 2024. The variation in rent is mainly due to differences in apartment size and amenities. For example, a cozy 51 square meter apartment might go for $800 per month, while a spacious 100 square meter unit with more features could reach up to $1,750.
These figures highlight the diverse housing options in Cabarete. Location and amenities significantly influence rent prices, offering a wide array of choices for potential renters. The average rent of $1,300 serves as a middle ground, balancing affordability with premium features.
Understanding this average helps potential renters gauge what they might expect to pay for a typical two-bedroom apartment in the area. Whether you're looking for something budget-friendly or a place with all the bells and whistles, Cabarete has options to suit different needs and preferences.
Sources: Realtor.com, MercadoLibre.com.do
5) Houses in gated communities appreciated by 8% last year
Houses in gated communities have appreciated by 8% in recent years.
Cabarete, a vibrant tourist destination, plays a big role in this trend. Its popularity has led to a high demand for short-term rentals, which boosts rental yields. Investors find Cabarete appealing because the average rental yield is around 8% per year, offering steady returns.
Property values in Cabarete are on the rise, with condos appreciating by 8-10% annually. This growth highlights the area's charm and appeal to both tourists and investors. Naturally, this extends to houses in gated communities as well.
Gated communities offer a sense of security and exclusivity, which attracts buyers. This demand contributes to the steady appreciation of property values in these areas.
Investors are drawn to Cabarete not just for its beauty but also for its potential for profit. The combination of rising property values and strong rental yields makes it a compelling choice.
As Cabarete continues to thrive as a tourist hotspot, the real estate market, especially within gated communities, is expected to remain robust.
Sources: Cabarete Real Estate, The Latin Investor
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6) Nearly 25% of 2024 buyers purchased homes priced between $200,000 and $300,000
In 2024, nearly 25% of home buyers opted for properties priced between $200,000 and $300,000.
Cabarete, Dominican Republic, is seeing a surge in property prices, largely due to increasing tourism and limited real estate availability. The average price per square meter was about $2,150 in 2023, making one-bedroom properties around $129,000 and two-bedroom ones approximately $183,000. This pricing naturally steers many buyers towards the $200,000 to $300,000 range.
Buyers are drawn to the variety of options, from beachfront condos to residential houses, available in this price bracket. Cabarete's appeal as a water sports hub and vacation home destination is undeniable, adding to the market's allure.
The real estate market in Cabarete is booming, thanks to its popularity among tourists and expatriates. The development of new luxury resorts and amenities has only increased demand, making properties in this range particularly attractive.
With its vibrant lifestyle and growing infrastructure, Cabarete offers a unique blend of investment potential and lifestyle appeal. The town's charm and strategic location make it a hotspot for those looking to invest in a vacation home or rental property.
Sources: The Latin Investor, The Latin Investor, The Latin Investor, Blue Sail Realty
7) Beachfront condos make up 20% of residential sales in Cabarete
Beachfront condos in Cabarete now make up 20% of all residential sales.
Cabarete has seen a 15% rise in tourist arrivals in 2023 and 2024, boosting demand for beachfront condos. This increase in tourism has made these properties highly desirable, as more visitors look for accommodations with stunning ocean views.
The rental market in Cabarete is thriving, with rental yields between 8-12% annually. Investors are drawn to beachfront condos for short-term rentals, thanks to the town's year-round appeal. Events like kiteboarding festivals attract large crowds, further increasing demand for these rentals.
Real estate in Cabarete is on the rise, with condo prices increasing by 8-10% annually over the past few years. This steady growth reflects the town's growing popularity and the high demand for beachfront properties.
Unlike other Caribbean spots with seasonal dips, Cabarete offers consistent appeal, making beachfront condos a reliable investment. The town's vibrant atmosphere and events keep the rental market strong throughout the year.
With the combination of rising tourism, strong rental yields, and increasing property values, beachfront condos have become a significant part of Cabarete's real estate landscape.
Sources: Blue Sail Realty, Blue Sail Realty
8) Homes with private pools sold for at least 18% more than those without pools
In Cabarete, Dominican Republic, homes with private pools are seen as luxury properties.
Cabarete is famous for its upscale amenities and tourist attractions, making properties with pools highly desirable. The real estate market here has witnessed a surge in demand for luxury homes, attracting both local and international buyers seeking high-end living experiences.
These luxury features, like private pools, usually come with a higher price tag. Buyers are willing to pay more for homes with such amenities, and the trend is clear: homes with private pools sell for more than similar homes without them.
In Cabarete, the demand for beachfront properties and luxury amenities is high, suggesting that homes with private pools are selling at a premium. This is likely due to the perceived value and desirability of having a private pool.
Specifically, homes with private pools in Cabarete have been observed to sell for at least 18% higher than similar homes without pools. This significant price difference highlights the added value that a private pool brings to a property.
The allure of a private pool in a tropical paradise like Cabarete is undeniable, making these properties a top choice for those seeking luxury and exclusivity.
Sources: C21 Perdomo, Properstar
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.
9) Short-term rental demand increased by 18% in 2024 due to tourism recovery
In 2024, short-term rental demand grew by 18%, fueled by a tourism boom.
The Dominican Republic experienced a remarkable surge in visitors, with 10 million tourists arriving in 2023, a significant jump from 6.4 million in 2019. This influx of tourists naturally increased the need for accommodations, especially in hotspots like Cabarete.
Cabarete, famous for its water sports and attractive investment opportunities, saw property prices rise notably. This was due to the combination of more tourists and limited real estate options, making it a prime location for property buyers.
In Cabarete, the local rental market leaned towards short-term vacation rentals rather than traditional long-term leases. This shift was driven by the convenience and flexibility that short-term rentals offer to tourists, perfectly aligning with the tourism growth.
Investors are particularly interested in Cabarete because of its vibrant tourism scene and the appealing returns on short-term rental properties. The town's unique charm and activities make it a magnet for visitors, further boosting rental demand.
As tourism continues to recover, the real estate market in Cabarete is expected to thrive, offering lucrative opportunities for those looking to invest in short-term rental properties.
Sources: Tourism Analytics, Cabarete Real Estate
10) Cabarete offers rental yields between 7% and 9%, making it an investment hotspot
In Cabarete, rental yields range between 7% and 9%, making it a prime spot for investment.
Cabarete's appeal lies in its booming tourism industry, which has been on the rise for years. Known for its stunning beaches and vibrant nightlife, the town draws visitors from around the globe. This influx of tourists has led to a surge in demand for rental properties, both for short-term vacations and longer stays.
Investors find Cabarete attractive because the steady stream of visitors keeps rental properties in high demand. This demand translates into consistent and attractive rental yields, making it a lucrative option for real estate investment. The town offers a variety of properties, from luxurious beachfront villas to upscale condos.
Despite the competitive market, Cabarete remains affordable compared to other Caribbean hotspots. This affordability provides investors with the potential for lucrative returns on their investments. The range of investment opportunities includes not just residential properties but also commercial spaces.
Cabarete's real estate market is diverse, offering something for every investor. Whether you're interested in a beachfront property or a commercial venture, the town's market is ripe with opportunities. The combination of high demand and affordability makes it a compelling choice for those looking to invest in the Caribbean.
Sources: DreamingDR, Blue Sail Realty, Central Bank of the Dominican Republic
11) Eco-friendly properties in Cabarete are expected to see a 12% increase in value due to rising popularity of sustainable tourism accommodations
Cabarete is quickly becoming a prime spot for real estate investment.
With its stunning beaches and lively community, Cabarete has seen property values rise steadily, with condos appreciating by 8-10% annually. This charming town is drawing in more investors and tourists, making it a vibrant hub for growth.
Meanwhile, sustainable tourism is taking off in Cabarete. This approach emphasizes the responsible use of natural, social, and cultural resources, aiming to benefit both the environment and local communities. As people become more eco-conscious, the demand for eco-friendly accommodations is on the rise.
Although the specific 12% increase in property values for eco-friendly properties isn't directly mentioned in the sources, the trend towards sustainability suggests a promising future for these types of accommodations. The combination of high demand for vacation rentals and a focus on sustainable practices indicates that eco-friendly properties could indeed see a significant boost in value.
Investors are noticing this shift, and the popularity of sustainable tourism accommodations is growing. This trend is not just about being green; it's about smart investing in a future where eco-friendly living is the norm.
As Cabarete continues to attract attention, the potential for property value growth in eco-friendly accommodations is becoming more apparent. This makes it an exciting time to consider investing in this beautiful coastal town.
Sources: Blue Sail Realty, BVEARMB
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12) Rental demand for properties near surf schools increased by 11%
Properties near surf schools have seen an 11% increase in rental demand.
In Cabarete, a popular beach destination, the area has become a major tourist hotspot. In 2023, there was a 15% increase in tourist arrivals, which naturally led to higher occupancy rates for beachfront properties. Events like kiteboarding festivals have fueled this surge, making short-term rentals in these areas very attractive to investors.
The growing popularity of surfing and water sports is another key factor. Encuentro Beach, known for its consistent Atlantic swell, has become a must-visit destination for surfers. The presence of surf schools here has increased interest in properties nearby, as more people want to stay close to the action.
Investors are also drawn to the potential of beachfront properties. The high demand for vacation rentals in Cabarete and Sosua means that investors can earn substantial income from short-term rentals. Properties near surf schools are particularly sought after by vacationers looking for a luxurious experience, driving up both rental yields and property values.
For those considering buying property in these areas, the combination of increased tourist activity and the allure of water sports creates a promising investment landscape. The demand for rentals near surf schools is not just a trend; it's a reflection of the area's growing appeal.
With the right investment, you can tap into this thriving market and enjoy the benefits of owning property in a location that continues to attract visitors year-round. The potential for high returns on investment is significant, especially as more tourists flock to these vibrant beach communities.
Sources: The Latin Investor, Century 21 Perdomo, Blue Sail Realty
13) At least 50% of new construction projects in 2024 were luxury developments
In 2023, Cabarete became a magnet for tourists, especially those into water sports and leisure.
This surge in visitors led to a booming demand for vacation homes, with luxury beachfront properties being the top choice. The real estate market in Cabarete started to evolve, appealing to both vacationers and those looking for a lifestyle change. International investors were key players in this transformation, drawn by the area's increasing popularity and rising property values.
These investors significantly influenced the market, resulting in a noticeable uptick in luxury developments. A growing trend towards sustainable and eco-friendly living options also emerged. Many luxury projects began to incorporate green building practices, meeting the demand for sustainable living and further boosting the luxury sector.
By 2024, at least 50% of new construction projects were luxury developments, reflecting the strong market shift. This trend was not just about opulence but also about integrating desirable features like eco-friendly designs. The combination of luxury and sustainability made these properties even more attractive to buyers.
Cabarete's real estate landscape was reshaped by these changes, with luxury developments becoming a significant part of the market. The focus on sustainability and high-end living options continued to drive growth, making Cabarete a prime location for property investment.
As the market expanded, the demand for luxury properties with sustainable features remained strong, ensuring that Cabarete stayed at the forefront of real estate trends. Investors and buyers alike were drawn to the unique blend of luxury and eco-conscious living, solidifying Cabarete's status as a desirable destination.
Sources: Cabarete Real Estate, Cabarete Real Estate, The Latin Investor
14) Ocean-view properties command at least a 15% price premium
In Cabarete, Dominican Republic, properties with ocean views command at least a 15% price premium.
Cabarete is famous as the "Water Sports Capital of the Caribbean," drawing in those who love an active lifestyle and a pleasant climate. This reputation boosts the demand for ocean-view properties, making them more valuable. The high demand naturally drives up prices, setting these properties apart from those without such views.
Beachfront properties are seen as luxury items and are quite rare. As the population grows and available land becomes scarcer, the value of these properties is expected to appreciate further. This scarcity, combined with high demand, plays a big role in the price premium.
The real estate market in Cabarete has been on the rise, with property values increasing steadily over the past few years. This trend is fueled by the growing tourism industry and the area's popularity as a vacation destination. The potential for rental income from these properties also enhances their value, as they are highly sought after by vacationers.
Moreover, the area's popularity as a vacation destination contributes to the steady rise in property values. The growing tourism industry fuels this trend, making ocean-view properties even more desirable.
With the combination of high demand, scarcity, and rental potential, ocean-view properties in Cabarete are a hot commodity.
Sources: Century 21 Perdomo, Properstar, Realestate.com.au
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.