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 is happening in Cabarete’s real estate market? Are prices on the rise or decline? Is Cabarete still a prime destination for international buyers? How are local policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from investors, homeowners, and real estate enthusiasts, from the heart of Cabarete to its beautiful beachfronts. Maybe you’re curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Cabarete real estate scene daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our mission is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts or comments, and we’ll strive to enhance this content for you.
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1) Beachfront properties will experience a notable rent hike as they grow more popular for short-term stays
Beachfront properties in Cabarete are hot commodities for short-term rentals, and rents are climbing fast.
Why? Well, rental yields are impressive, ranging from 8-12% annually, showing a strong market for these properties. The Dominican Republic welcomed a record 10 million tourists in 2023, up from 6.4 million in 2019, which naturally boosts demand for short-term beachfront stays.
Cabarete's charm is undeniable, attracting both tourists and expats, which has pushed property prices up by 7-10% each year over the last five years. This surge reflects the high demand and occupancy rates for beachfront spots. Travel surveys back this up, showing a clear preference for beachfront locations.
Globally, short-term rentals are booming, thanks to platforms like Airbnb and VRBO. Cabarete is riding this wave, with its beachfront properties being particularly sought after. Positive reviews and high ratings on these platforms are a testament to their popularity, creating a cycle that boosts their appeal and rental returns.
In Cabarete, the trend is clear: beachfront properties are becoming more desirable for short-term stays, leading to significant rent increases. This is not just a local phenomenon but part of a larger global trend in the short-term rental market.
Sources: Travel Week, We Need a Vacation Blog, Blue Sail Realty
2) Rental yields for properties near popular beaches will rise due to strong tourist demand
Properties near popular beaches in Cabarete are seeing a boost in rental yields thanks to high tourist demand.
In recent years, Cabarete has become a hotspot for tourists, with a 15% increase in arrivals in just one year. This surge has led to high occupancy rates for beachfront properties, making them a lucrative investment.
The rental market here is thriving, with yields ranging from 8-12% annually. Events like kiteboarding festivals draw crowds, boosting demand for short-term rentals. As a result, the average price of condos has been climbing by 8-10% each year, showing Cabarete's growing allure.
Investors are likely to see higher average daily rates for rentals near these sought-after beaches. Luxury beachfront homes, in particular, are commanding a premium, reflecting their strong appreciation trends. These properties offer rental yields of 8-12%, making them a smart choice for investors.
Sources: Blue Sail Realty, Cabarete Real Estate, Blue Sail Realty
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.
3) Demand for properties near recreational facilities will rise with the trend towards health-conscious living
In 2023 and 2024, there's been a noticeable shift towards health-conscious living in the Dominican Republic.
People are increasingly looking for places that support an active lifestyle. In Cabarete, for instance, there's a growing trend of gyms and wellness centers popping up to meet this demand. This makes the area more appealing to those who want to live near recreational facilities.
Consumer surveys, like those from McKinsey, highlight a clear preference for homes near recreational spots. This is because people are seeking science-backed health and wellness solutions, which often include access to outdoor activities and fitness amenities.
The development of new recreational infrastructure, such as parks and sports facilities, is further enhancing the appeal of properties in Cabarete. This infrastructure is likely to attract more health-conscious individuals who prioritize living near recreational areas.
In the Dominican Republic, the Digital Fitness & Well-Being market is expected to grow significantly, reaching a market volume of US$102.10 million by 2029. This growth indicates a rising number of individuals prioritizing their health and well-being.
As more people focus on health, the demand for properties near recreational facilities is expected to rise. This trend is particularly notable in areas like Cabarete, where the development of gyms and wellness centers is on the rise.
Sources: Statista, McKinsey, Buy and Sell Fitness
4) Cabarete’s property prices will rise moderately as demand keeps growing
In 2023 and 2024, property prices in Cabarete steadily increased due to rising tourism and limited real estate options.
Cabarete is becoming a hotspot for international buyers, thanks to its reputation as a top water sports destination. The Dominican Republic's stable political scene and favorable investment climate are also drawing in more affluent investors.
Known for its kitesurfing, Cabarete attracts a steady flow of tourists and potential property buyers. This influx is further fueled by the remote working trend, as more people look for vacation homes in attractive locations like Cabarete.
Beachfront properties are particularly in demand, with buyers eager to invest in prime real estate that offers both leisure and investment potential. The limited availability of such properties only adds to their appeal.
As more people discover Cabarete's charm, the demand for real estate continues to grow. This trend is expected to lead to a moderate increase in property prices over the coming years.
Overall, Cabarete's blend of natural beauty and recreational opportunities makes it a compelling choice for property buyers. The ongoing interest from international investors suggests that property values will keep rising as demand remains strong.
Source: Properstar
5) Remote work trends will boost demand for homes with dedicated office spaces
Remote work has become a major trend in recent years, especially in 2023 and 2024.
By 2024, 91% of employees worldwide wanted to work fully or mostly from home. This isn't just a temporary change; it's a new way of working that's here to stay.
With more people working from home, having a dedicated office space is becoming a must-have. In the US, 58% of white-collar workers prefer to work remotely at least three days a week, showing a clear need for homes that support a productive work setup.
The real estate market is catching on. There's been a noticeable rise in property listings that include dedicated office spaces. Buyers are actively looking for homes with these features, especially in areas where remote work is common.
Real estate agents are seeing this trend firsthand. They report that homes with office spaces are in high demand, reflecting the shift in how people want to live and work.
Sources: Backlinko, Neat.no, PR Newswire
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6) Surfers and beach lovers will boost property demand in the Encuentro Beach area
Encuentro Beach is quickly becoming a must-visit spot for surfers and beach enthusiasts.
In 2024, the EPIC Master of the Ocean event in Cabarete drew a crowd of local and international surfing fans, highlighting the area's growing appeal. This event put Encuentro Beach on the map for those passionate about the surfing lifestyle.
Cabarete is already famous for its wind sports, but its consistent Atlantic swell is a magnet for surfers worldwide. Encuentro Beach is a prime spot for watersports, with plenty of surf schools and rental shops offering lessons and gear for all skill levels.
Social media is buzzing with posts about Encuentro Beach, showcasing its reputation as a top surfing destination. Travel blogs and reviews, like those from Hotel Villa Taina, rave about its consistent waves and laid-back vibe, adding to its allure.
With its growing popularity, Encuentro Beach is seeing increased interest from surfers and beach lovers, which is likely to drive up property demand in the area. The combination of natural beauty and a vibrant surfing community makes it an attractive place to invest.
As more people discover the charm of Encuentro Beach, the area is set to become a hotspot for real estate, offering a unique blend of adventure and relaxation. The buzz around this beach is only getting louder, making it a prime location for potential buyers.
Sources: Master of the Ocean, Cabarete Condos, Simply Dominican, Villa Taina
7) Kite Beach will draw more investors as it gains fame as a top kiteboarding destination
The Kite Beach area in Cabarete is gaining fame as a world-class kiteboarding destination.
Every year, Cabarete hosts major events like the Cabarete Kite Festival and the Master of the Ocean competition, drawing thousands of visitors from around the globe. This influx of tourists has given a noticeable boost to local tourism, which in turn has led to a steady rise in property values and rental yields for nearby properties, including luxury villas and condos.
The area is also seeing a surge in kiteboarding schools and facilities. For instance, Cabarete Kite Point offers a full range of services, from lessons to gear sales and rentals, making it a one-stop shop for kiteboarding enthusiasts. This growth in infrastructure is a clear sign of the area's increasing popularity.
Media coverage has been overwhelmingly positive, often highlighting Kite Beach as a premier destination for kiteboarding. Professional kiteboarders frequently praise Cabarete for its ideal conditions, consistent trade winds, and warm waters, making it a hotspot for both beginners and seasoned riders.
Investors are taking note of this buzz, as the area's reputation continues to grow. The combination of international events, excellent facilities, and perfect natural conditions makes Kite Beach a magnet for tourists and investors alike.
With all these factors in play, it's no wonder that the Kite Beach area is becoming a prime spot for real estate investment. The ongoing development and increasing popularity suggest that this trend is likely to continue, making it an attractive option for those looking to invest in property.
Sources: Cabarete Kite Point, Cabarete Real Estate, Blue Sail Realty, Villa Taina
8) New road projects will enhance access to remote areas, increasing property interest
New road projects are transforming access to previously hard-to-reach areas.
Thanks to the Infrastructure Investment and Jobs Act (IIJA), we've seen a boom in infrastructure projects like highways and bridges. This trend is continuing strong into 2023 and 2024. Highway construction jumped by 7.1% in 2024, and it's set to rise even more, with an expected boost of 11.5% in 2025. This means more roads are popping up, making it easier to reach places that were once off the beaten path.
Bridge construction is also on the rise, with a 14.5% increase by the end of 2023 and another 8.9% growth anticipated in 2024. As these new roads and bridges open, traffic naturally increases, making these areas more accessible. This newfound accessibility is sparking interest in real estate, as people are drawn to these newly reachable spots.
Real estate market reports are already showing a trend: property values are climbing in these areas thanks to improved connectivity. As more people discover these accessible locations, property sales and inquiries are likely to rise. It's a ripple effect—better roads lead to more interest, which boosts property values.
For those considering buying property in the country, this is a golden opportunity. With new roads making remote areas more accessible, the potential for property investment is growing. These infrastructure improvements are not just about convenience; they're reshaping the real estate landscape.
So, if you're eyeing a property in the countryside, keep an eye on these developments. Improved access could mean a great investment opportunity as these areas become more desirable. The completion of these road projects is set to make a significant impact on property interest.
Sources: ENR, ForConstructionPros, Interact Analysis
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.
9) Rents in remote areas will stay stable due to limited demand
Rents in less accessible areas of Cabarete are likely to remain stable due to limited demand.
One big reason for this stability is the lack of public transportation in these areas, making it tough for people to get there. This inconvenience means fewer people are interested in renting, which keeps the rents from rising.
In these less accessible spots, the population density is lower compared to the bustling central areas. For instance, Cabarete's urban population is 7,141, while the rural areas have 9,007 people. With fewer folks around, there aren't as many potential renters, which helps keep rental prices steady.
Looking at past rental data, it's clear that prices in these out-of-the-way areas have stayed pretty stable over the years. This is mainly because not many people are clamoring to live there. Surveys show that most tenants prefer central locations for their better access to amenities and jobs, which shifts demand away from the outskirts.
Because of this preference for central areas, the less accessible regions see lower demand, which naturally leads to stable rents. People want to be where the action is, leaving these quieter areas with fewer renters.
So, if you're thinking about buying property in Cabarete, know that these less accessible areas offer a kind of stability due to their limited appeal to renters.
Sources: City Population, International Living
10) Inland property prices may dip slightly due to reduced tourist traffic
In the Dominican Republic, tourism is booming, especially in coastal areas like Cabarete.
In 2023, the country saw over 7 million tourists by August, a 25% jump from the previous year. But this surge is mostly happening along the coast, leaving inland areas quieter and less bustling with visitors.
Real estate in these inland regions is feeling the pinch. While coastal properties are in high demand thanks to their beachside allure, inland areas aren't seeing the same interest. Tourists are flocking to the beaches, driving up property demand there and leaving inland spots with fewer takers.
Hotels and vacation rentals inland are also seeing fewer guests, which is a clear sign of declining tourist traffic in these areas. Even transportation data backs this up, showing fewer flights and road trips heading inland compared to the coast.
Economic reports are pointing out that business investments are shifting towards coastal regions. This means inland areas are missing out on potential growth opportunities that come with a bustling tourist scene.
Sources: Tifton CEO, Dominican Today
11) Properties with private outdoor spaces will gain desirability due to post-pandemic lifestyle changes
In Cabarete, the demand for homes with gardens or terraces has skyrocketed in 2023 and 2024.
People are now prioritizing private outdoor spaces, and you can see this shift in real estate listings that emphasize these features. Outdoor spaces have become a key selling point, reflecting a broader lifestyle change where people want more room to breathe and relax at home.
Companies like Outdoor Patio Emporium have reported a surge in sales of outdoor furniture and gardening supplies. This trend shows that people are investing in their outdoor living areas, turning them into personal retreats for activities like gardening and outdoor dining.
Surveys reveal that many prefer homes with private outdoor areas, driven by a desire to boost mental and physical health. Social media is buzzing with posts about outdoor living, showing that this trend is not just a passing fad.
In Cabarete, homes with private outdoor spaces have seen higher price appreciation. Real estate agents confirm that there's a growing demand for these properties, and architectural designs are increasingly focusing on indoor-outdoor living.
Sources: Outdoor Patio Emporium, NAHB, Gardeners.com
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12) Environmental efforts to protect local beaches will boost nearby property values
Environmental initiatives to preserve local beaches can significantly boost property values nearby.
When beaches are well-kept, they attract more tourists, which in turn boosts the local economy. Take Miami Beach, for instance; after its restoration, tourism surged, bringing in billions to the local economy. This kind of economic boost often leads to increased property values as the area becomes more desirable.
There's a clear link between environmental quality and property values. In Washington, for every dollar spent on beach preservation, the state sees $320 in tax revenues from tourists. This not only supports tourism but also makes the area more attractive for potential property buyers.
People are increasingly looking for eco-friendly homes. Buyers now prefer properties that fit sustainable and environmentally conscious lifestyles. This shift is pushing up the value of homes near preserved beaches, as they offer both natural beauty and sustainable living options.
Living near a well-maintained beach isn't just about the view; it's about lifestyle. Properties in these areas often come with the added benefit of being part of a community that values sustainability. This makes them even more appealing to today's buyers who are looking for more than just a house.
So, if you're considering buying property, keep an eye on areas with active beach preservation efforts. These places not only promise a beautiful environment but also a potentially higher return on investment. Investing in such areas could be a smart move for both your lifestyle and your wallet.
Sources: Sandsaver, Constellation1
13) Virtual reality tours will become more common, simplifying property viewings for international buyers
Virtual reality tours are becoming a game-changer in real estate.
Back in 2023, the global virtual tour market was valued at $0.96 billion, and it's expected to skyrocket to $17.88 billion by 2035. This boom is thanks to the leaps in VR and AR tech, making these tours more accessible and budget-friendly for everyone involved. Imagine exploring a potential new home from your couch, no plane ticket needed.
International buyers are a big part of this shift. In 2023, they made up 2% of the $2.1 trillion in U.S. home sales. Folks from Canada, China, Mexico, and India are especially keen on snapping up properties abroad. Real estate agencies are catching on, using virtual tours to cater to these buyers who can't just pop over for a weekend viewing.
Surveys from 2023 revealed that over 50% of adults had taken a virtual tour, and a whopping 67% of home buyers wanted them in listings. Even more telling, 90% of potential buyers said they'd be more likely to buy if a virtual tour was available. This shows just how much people, especially those buying from afar, value the chance to "walk through" a home without leaving their own.
VR tech has made these tours not just possible but practical. By 2023, VR headsets were affordable enough for many, letting buyers explore homes in places like Cabarete without stepping on a plane. This ease of access is a major reason why virtual tours are taking off, offering a real sense of a property from miles away.
Sources: PhotoUp, RISMedia, Travel and Tour World, Realtyna
14) Online platforms will simplify buying, drawing more tech-savvy investors
In the Dominican Republic, digital transactions in real estate are on the rise.
Platforms like Airbnb and VRBO are buzzing with activity, especially in tourist hotspots like Cabarete. This shows that investors are using online platforms to easily find and buy properties. The ability to search and book properties online is a big draw for those who are comfortable with technology.
Mobile apps are also making waves in real estate. They let users browse, book, and manage properties from anywhere, making the buying process more accessible for those who prefer digital solutions. This shift to mobile app usage highlights the growing trend of online property transactions.
In Cabarete, online property sales are booming. Real estate agencies report higher success rates with online listings and virtual tours. These digital tools are reaching a wider audience, making it easier for tech-savvy investors to dive into the market.
Online platforms are streamlining the buying process, attracting more tech-savvy investors who appreciate the convenience and efficiency. The trend is clear: more people are turning to digital solutions for their real estate needs.
With the rise of these platforms, the real estate market is becoming more dynamic, offering new opportunities for investors who are ready to embrace technology.
Sources: Blue Sail Realty, The Agency DR
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.