Buying real estate in the Dominican Republic?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Is 2025 a good time to buy real estate in the Dominican Republic?

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Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack

buying property foreigner The Dominican Republic

Everything you need to know before buying real estate is included in our Dominican Republic Property Pack

The Dominican Republic residential property market in June 2025 presents a compelling opportunity for buyers. With strong demand in tourist areas, favorable foreign ownership laws, and attractive rental yields of 6-10% annually, the market offers excellent value compared to other Caribbean destinations.

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.

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.

How this content was created 🔎📝

At TheLatinvestor, we explore the Dominican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Santo Domingo, Punta Cana, and Las Terrenas. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

photo of expert gigi tea

Fact-checked and reviewed by our local expert

✓✓✓

Gigi Tea 🇩🇴

Realtor, at RealtorDR

Combining her roots and years of experience, Gigi helps clients explore the Dominican Republic's real estate market with confidence. She showcases the country's unique opportunities, making you feel at home while investing in your dream property. We engaged in a conversation with her and used her feedback to fine-tune the blog post, adding details and her personal perspective.

Are current property prices in the Dominican Republic offering good opportunities for buyers?

Property prices in the Dominican Republic offer excellent value compared to other Caribbean destinations.

Current prices range from $1,800-$2,800 per square meter in Santo Domingo to $2,200-$3,500 in prime beachfront locations like Punta Cana and Cabarete. These represent a 15-20% discount compared to similar properties in Puerto Rico or Jamaica.

The market has shown steady appreciation over the past five years without excessive speculation. This balanced growth suggests prices are sustainable rather than inflated, providing good entry points for buyers planning to hold properties for medium to long-term periods. Tourist areas particularly offer strong value propositions with their combination of lifestyle benefits and investment returns.

It's something we develop in our Dominican Republic property pack.

Foreign buyers are finding especially attractive opportunities in emerging areas where infrastructure improvements are driving future appreciation potential.

Is there currently more buyer or seller activity in the Dominican Republic property market?

The Dominican Republic residential market shows stronger buyer activity than seller activity, particularly in tourist-focused areas.

Properties priced correctly in Punta Cana and Las Terrenas are selling within 60-90 days, indicating healthy demand. Foreign buyers represent approximately 40% of transactions in coastal areas, with North Americans and Europeans driving demand.

This buyer momentum is supported by improved air connectivity and the continuation of remote work trends. Santo Domingo's urban apartment market sees balanced activity, while beachfront properties in Cabarete often receive multiple offers. Sellers in prime locations frequently receive offers close to asking prices, reflecting the market's strength and buyer confidence.

The sustained buyer interest creates a competitive environment that benefits well-positioned properties.

What are the short-term and long-term price forecasts for Dominican Republic properties today?

Property price forecasts remain positive for both short and long-term horizons.

Short-term predictions for the next 12-18 months indicate price increases of 5-8% annually in tourist areas like Punta Cana and Cabarete. Santo Domingo residential properties are expected to appreciate more moderately at 3-5% annually.

Growth Driver Expected Impact on Prices
Airport expansions +10-15% in surrounding areas
New highway connections +5-10% accessibility premium
Digital infrastructure upgrades +3-5% for remote work appeal
Eco-friendly development trends +5-8% for sustainable properties
Continued tourism growth +15-20% cumulative by 2030

Long-term projections through 2030 forecast cumulative appreciation of 25-35% in prime coastal locations, driven by infrastructure improvements and sustained foreign investment.

Are current mortgage rates favorable for property buyers in the Dominican Republic?

Mortgage rates for foreign buyers are competitive within the Caribbean context.

Current rates range from 6% to 9% for non-residents, which compare favorably to other regional markets where foreigners often cannot access local financing at all. While these rates are higher than those available to Dominican citizens (4.5-6%), they remain attractive for international buyers.

The main consideration is the down payment requirement of 30-50% for non-residents. However, loan terms extending up to 20 years provide reasonable payment schedules. Cash buyers benefit from additional leverage, as sellers often provide 5-10% discounts for transactions completed within 30 days.

The availability of financing options makes property investment more accessible to a broader range of international buyers.

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buying property foreigner the Dominican Republic

Are Dominican Republic residential properties regarded as safe investments today?

Dominican Republic residential properties are considered safe investments backed by multiple protective factors.

The country offers clear property rights with no restrictions on foreign ownership, providing legal security for international investors. Economic stability is supported by $8 billion in annual tourism revenue and a stable Dominican peso.

Political consistency across government changes maintains pro-investment policies. The active resale market in tourist areas, with average selling times of 3-4 months, ensures good liquidity. Strong rental yields of 6-10% provide reliable cash flow during ownership periods.

Risk factors include hurricane exposure, which can be mitigated through comprehensive insurance, and potential changes to short-term rental regulations in some municipalities.

It's something we develop in our Dominican Republic property pack.

What types of properties offer the best value in the Dominican Republic today?

Several property types currently offer exceptional value propositions for different investment strategies.

Two-bedroom beachfront condos in Las Terrenas ($180,000-$250,000) provide 7-10% rental yields with strong appreciation potential. Pre-construction units in Punta Cana offer 15-20% discounts compared to completion prices, with developers providing attractive payment plans.

Renovation opportunities in Santo Domingo's Colonial Zone ($120,000-$200,000) appeal to buyers seeking historic properties with tourism potential. Eco-friendly villas in Cabarete ($300,000-$500,000) meet growing demand from environmentally conscious buyers. Mixed-use properties in emerging areas like Miches combine commercial and residential income streams.

Properties offering both rental income potential and personal use flexibility provide optimal value propositions for most international buyers.

How do current acquisition costs compare to other Caribbean destinations?

Total acquisition costs in the Dominican Republic are highly competitive within the Caribbean region.

Cost Component Dominican Republic Jamaica Puerto Rico Barbados
Transfer Tax 3% 5% 0-4% 2.5%
Legal Fees 1-1.5% 2-3% 1-2% 1.5-2%
Registration 0.5% 0.5% 0.5% 0.1%
Total 4.5-5% 7.5-8.5% 1.5-6.5% 4.1-4.6%

The transparent fee structure treats foreign and local buyers equally, unlike some Caribbean nations that impose additional foreign buyer taxes. Annual property taxes only apply to properties valued above $150,000 at a 1% rate.

What infrastructure developments are currently boosting property values?

Major infrastructure projects are significantly impacting property values across the Dominican Republic.

The Punta Cana International Airport expansion is adding 30% capacity by 2026, with properties within 10km seeing 10-15% premiums. Puerto Plata Airport modernization has completed Phase 1, boosting North Coast property interest by 20%.

The Santo Domingo-Punta Cana highway upgrade reduces travel time to 2 hours, lifting values along the corridor by 8-12%. 5G network deployment has achieved 80% coverage in tourist areas, adding 3-5% premiums for connected properties. The Bavaro Beach boardwalk extension creates new investment zones with 25% appreciation since announcement.

Properties near infrastructure projects typically see immediate value increases of 10-20% upon announcement, with further gains as projects complete.

infographics map property prices the Dominican Republic

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Dominican Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

Are there new visa or residency benefits for property buyers in June 2025?

The Dominican Republic introduced streamlined residency programs in early 2025 that significantly benefit property buyers.

Property purchases of $200,000 or more now qualify for fast-track residency with 3-4 months processing time. The retirement visa program reduced income requirements to $1,500 per month for retirees purchasing property.

A new digital nomad visa allows 2-year renewable visas for remote workers buying property. Tax incentives include no wealth tax on foreign assets and no inheritance tax for direct heirs. Property owners receive 5-year multiple entry permits, simplifying travel arrangements.

It's something we develop in our Dominican Republic property pack.

These programs position the Dominican Republic as one of the most accessible Caribbean countries for foreign property buyers seeking residency options.

How strong is rental demand for Dominican Republic properties right now?

Rental demand remains exceptionally strong across all market segments.

Short-term vacation rentals achieve occupancy rates of 70-85% in high season and 50-65% in low season. Average daily rates range from $150-300 for 2-bedroom units in tourist areas, with bookings made 3-6 months in advance for peak periods.

Long-term residential rentals show 95% occupancy for quality apartments in Santo Domingo. Growing expat communities in Sosua and Las Terrenas drive demand for furnished rentals at $800-2,000 monthly for 2-bedroom units. Corporate rentals are increasing with foreign company expansions.

This combination of tourist and resident rental demand provides property owners with flexible income strategies and strong cash flow potential year-round.

What risks should buyers consider in the current Dominican Republic market?

While the market outlook is positive, buyers should evaluate several risk factors.

Hurricane exposure requires comprehensive insurance costing $2,000-5,000 annually for a $300,000 property. Some municipalities are considering stricter short-term rental regulations that could impact investment returns.

Currency stability depends on continued tourism growth, though the peso has remained stable. Infrastructure projects face potential 6-12 month delays that could affect property appreciation timelines. Approximately 5-10% of properties have complex ownership histories requiring careful title verification.

Risk mitigation includes working with established real estate attorneys, purchasing title insurance, diversifying property locations, and maintaining adequate coverage.

How does the Dominican Republic compare to competing Caribbean markets today?

The Dominican Republic outperforms most Caribbean competitors on key investment metrics.

Factor Dominican Republic Performance Advantage vs Regional Average
Property Prices 30% below Caribbean average Significant cost advantage
Rental Yields 6-10% annually 2-3% higher than average
Foreign Ownership Rights Unrestricted Most liberal in region
Financing Access Available to foreigners Better than most markets
Residency Options Multiple pathways More flexible programs
Market Liquidity High in tourist areas Faster resale times

This combination of favorable factors makes the Dominican Republic one of the most attractive Caribbean investment destinations for international property buyers.

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.

Sources

  1. Dominican Republic Tourism Ministry Market Report (June 2025)
  2. Central Bank of Dominican Republic Economic Indicators (Q2 2025)
  3. Caribbean Real Estate Investment Analysis by CBRE (2025)
  4. Infrastructure Development Updates - Ministry of Public Works (June 2025)
  5. Foreign Investment Law Updates - Dominican Republic Investment Authority (2025)