Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
The Dominican Republic property market continues to attract both local and international buyers, with prices rising steadily thanks to record tourism numbers and strong foreign investment.
In this article, we break down the current housing prices in the Dominican Republic, explain what is driving these trends, and share our forecasts for 2026 and beyond.
We constantly update this blog post to reflect the latest data and market shifts, so you always have access to fresh information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the Dominican Republic.
Insights
- The Dominican Republic welcomed a record 11.6 million visitors in 2025, and this tourism boom is directly fueling property demand in coastal areas like Punta Cana and Cap Cana.
- Apartment prices in the Dominican Republic rose 10.7% year-over-year to reach about DOP 131,000 per square meter, while houses climbed even faster at 11.6%.
- Prime neighborhoods in Santo Domingo like La Esperilla and Piantini command prices around DOP 160,000 per square meter, nearly triple the price of emerging areas in Santo Domingo Este.
- Mortgage rates in the Dominican Republic have dropped from 12.4% to around 11.3% over the past year, thanks to the central bank cutting its benchmark rate to 5.25%.
- Gross rental yields in the Dominican Republic average 7.1%, with Punta Cana one-bedroom units often exceeding 8%, making the country competitive with other Caribbean destinations.
- The government is investing $700 million in airport infrastructure through 2026, including a new international airport in Pedernales set to open by mid-2026.
- Foreign buyers now account for about 40% of luxury property transactions in the Dominican Republic, with Americans and Canadians leading the demand.
- Construction costs in the Dominican Republic continue to rise, meaning new-build properties typically cost 15% to 25% more per square meter than resale homes.
- The Pedernales-Cabo Rojo megaproject represents a $2.2 billion investment that could add 12,000 hotel rooms and create an entirely new tourism hub by 2033.
What are the current property price trends in the Dominican Republic as of 2026?
What is the average house price in the Dominican Republic as of 2026?
As of early 2026, the average property price in the Dominican Republic typically falls between DOP 7.5 million and DOP 15 million (roughly $125,000 to $250,000 USD or €115,000 to €230,000 EUR), depending on location and property type.
When it comes to price per square meter, apartments in the Dominican Republic average around DOP 131,000 per square meter ($2,200 USD or €2,000 EUR), while houses tend to be slightly lower at about DOP 105,000 per square meter ($1,760 USD or €1,600 EUR).
For a realistic picture, about 80% of residential property purchases in the Dominican Republic fall within a range of DOP 4 million to DOP 25 million ($65,000 to $420,000 USD or €60,000 to €385,000 EUR), with the lower end representing smaller condos in non-prime areas and the upper end covering larger family homes or villas in desirable locations.
How much have property prices increased in the Dominican Republic over the past 12 months?
Over the past 12 months, property prices in the Dominican Republic have increased by an estimated 8% to 11% on average, making it one of the stronger-performing markets in the Caribbean region.
The range of price increases varies by property type, with apartments rising around 10.7% and standalone houses showing even stronger gains at approximately 11.6%, according to listing data from late 2025.
The single most significant factor behind this price movement has been the record-breaking tourism performance in 2025, with 11.6 million visitors fueling investor confidence and demand for rental properties in coastal areas.
Which neighborhoods have the fastest rising property prices in the Dominican Republic as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in the Dominican Republic are Piantini and Naco in Santo Domingo, along with the Marina Cap Cana area on the eastern coast.
These top-performing neighborhoods are seeing annual price growth in the range of 10% to 14%, with Cap Cana often pushing toward the higher end due to its luxury positioning and limited beachfront inventory.
The main demand driver behind this price growth is a combination of scarcity (especially for prime land), strong foreign buyer interest, and the short-term rental economics that make these areas attractive for both lifestyle and investment purposes.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in the Dominican Republic.
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.
Which property types are increasing faster in value in the Dominican Republic as of 2026?
As of early 2026, the ranking of property types by value appreciation in the Dominican Republic is: condos and apartments in first place, followed by villas in resort communities, then townhouses and duplexes, and finally standalone houses in non-prime areas.
The top-performing property type (condos and apartments) is appreciating at roughly 10% to 12% annually in sought-after urban and coastal locations.
The main reason condos are outperforming is their liquidity and rental versatility: they appeal to a wide range of buyers, from first-time investors to retirees, and they work well for short-term rentals in tourist zones.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in the Dominican Republic?
- How much should you pay for a house in the Dominican Republic?
- How much should you pay for lands in the Dominican Republic?
What is driving property prices up or down in the Dominican Republic as of 2026?
As of early 2026, the top three factors driving property prices in the Dominican Republic are record tourism numbers (11.6 million visitors in 2025), rising construction costs that push new-build prices higher, and strong foreign investment supported by favorable tax incentives.
The single factor with the strongest upward pressure on property prices is tourism, because it creates sustained demand for short-term rental properties and gives investors confidence that their properties will generate income.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about the Dominican Republic here.
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What is the property price forecast for the Dominican Republic in 2026?
How much are property prices expected to increase in the Dominican Republic in 2026?
As of early 2026, property prices in the Dominican Republic are expected to increase by approximately 6% to 9% over the course of the year.
The range of forecasts from different analysts varies from a conservative 5% to an optimistic 12%, depending on assumptions about tourism performance and interest rate movements.
The main assumption underlying most price increase forecasts is that tourism will remain strong and that the central bank will continue its gradual easing cycle, which would improve mortgage affordability and support buyer demand.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in the Dominican Republic.
Which neighborhoods will see the highest price growth in the Dominican Republic in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in the Dominican Republic are Piantini, Naco, and Evaristo Morales in Santo Domingo, along with Cap Cana (Marina and Juanillo areas) and Bávaro (Los Corales and El Cortecito) on the eastern coast.
These top neighborhoods are projected to see price growth of 9% to 13% in 2026, outpacing the national average thanks to limited supply and strong demand from both foreign buyers and the Dominican diaspora.
The primary catalyst driving expected growth in these neighborhoods is the combination of lifestyle appeal, rental income potential, and infrastructure improvements that make them increasingly accessible.
One emerging neighborhood that could surprise with higher-than-expected growth is Las Terrenas (especially the Playa Bonita area), which offers beach proximity at lower price points than Punta Cana and is attracting more European buyers.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Dominican Republic.
What property types will appreciate the most in the Dominican Republic in 2026?
As of early 2026, condos and apartments in walkable resort zones and prime urban districts are expected to appreciate the most in the Dominican Republic.
The projected appreciation for this top-performing property type is around 9% to 12% for the year, driven by their appeal to both short-term rental investors and lifestyle buyers.
The main demand trend driving appreciation for condos is the continued strength of tourism and the preference among foreign buyers for turnkey, amenity-rich properties that can generate rental income immediately.
On the other hand, older standalone houses in car-dependent, non-prime areas are expected to underperform because they lack the rental appeal and liquidity that condos offer, and they often require significant maintenance investment.
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 will interest rates affect property prices in the Dominican Republic in 2026?
As of early 2026, interest rate trends are expected to have a moderately positive effect on property prices in the Dominican Republic, as the central bank has been gradually easing monetary policy.
The current benchmark interest rate set by the Banco Central de la República Dominicana (BCRD) is 5.25%, and mortgage rates have declined from about 12.4% to around 11.3% over the past year, with further gradual decreases expected.
A 1% decrease in mortgage interest rates typically improves affordability by roughly 10% in terms of the monthly payment for a given loan amount, which can translate into 3% to 5% additional price growth as more buyers qualify for financing.
You can also read our latest update about mortgage and interest rates in The Dominican Republic.
What are the biggest risks for property prices in the Dominican Republic in 2026?
As of early 2026, the three biggest risks for property prices in the Dominican Republic are a potential tourism slowdown if global economic conditions weaken, oversupply in certain condo-heavy resort corridors, and affordability constraints if mortgage rates fail to decline as expected.
The single risk with the highest probability of materializing is oversupply in specific micro-markets, particularly in Bávaro and parts of Punta Cana where many similar condo projects are competing for the same pool of rental-focused buyers.
We actually cover all these risks and their likelihoods in our pack about the real estate market in the Dominican Republic.
Is it a good time to buy a rental property in the Dominican Republic in 2026?
As of early 2026, buying a rental property in the Dominican Republic can be a good decision for investors who target the right locations and underwrite their numbers conservatively, particularly in walkable resort zones with proven rental demand.
The strongest argument in favor of buying now is that tourism is at record levels (11.6 million visitors in 2025), gross rental yields average around 7%, and mortgage rates are trending downward, which could support both rental income and future price appreciation.
The strongest argument for waiting is that some resort areas may be approaching oversupply, and if you rush into a poorly located project, you could face high vacancy rates and disappointing returns.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in the Dominican Republic.
You'll also find a dedicated document about this specific question in our pack about real estate in the Dominican Republic.
Buying real estate in the Dominican Republic can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in the Dominican Republic?
What is the 5-year property price forecast for the Dominican Republic as of 2026?
As of early 2026, cumulative property price growth of 30% to 45% is expected over the next five years in the Dominican Republic, assuming steady tourism and no major economic shocks.
The range of 5-year forecasts spans from a conservative 25% (if tourism slows or interest rates stay elevated) to an optimistic 50% (if infrastructure investments and foreign demand exceed expectations).
This translates to a projected average annual appreciation rate of roughly 5% to 8% per year over the next five years in the Dominican Republic.
The key assumption most forecasters rely on is that tourism will continue growing at 3% to 5% annually and that the government will maintain its pro-investment policies, including the CONFOTUR tax incentives for tourism-zone properties.
Which areas in the Dominican Republic will have the best price growth over the next 5 years?
The top three areas expected to have the best price growth over the next five years in the Dominican Republic are Cap Cana (with its established luxury positioning), the Pedernales-Cabo Rojo development zone (as infrastructure comes online), and Santo Domingo's prime core (Piantini, Naco, Bella Vista).
These top-performing areas are projected to see 5-year cumulative price growth of 40% to 55%, outpacing the national average due to scarcity, infrastructure investment, and persistent demand.
This is broadly consistent with our shorter-term forecast, though Pedernales is a longer-term play that may see most of its gains in years three through five as the airport opens and hotel inventory grows.
One currently undervalued area with strong potential for outperformance over five years is Miches, on the northeastern coast, where new Hyatt-branded resorts are opening and infrastructure is improving, but prices remain well below Punta Cana levels.
What property type will give the best return in the Dominican Republic over 5 years as of 2026?
As of early 2026, well-located condos and apartments in walkable resort zones and prime urban districts are expected to give the best total return over five years in the Dominican Republic.
The projected 5-year total return (combining appreciation and rental income) for this property type is roughly 60% to 85%, assuming an average of 7% gross rental yield annually plus 5% to 8% price appreciation.
The main structural trend favoring condos is the continued growth of short-term rentals and the preference among foreign buyers for turnkey properties with amenities, pools, and security.
For investors prioritizing lower risk over maximum returns, townhouses in established gated communities near schools and services offer a good balance, as they attract long-term family tenants and have steadier occupancy.
How will new infrastructure projects affect property prices in the Dominican Republic over 5 years?
The top three major infrastructure projects expected to impact property prices in the Dominican Republic over the next five years are the $700 million airport modernization program (including the new Cabo Rojo International Airport in Pedernales), the $300 million Cibao International Airport expansion in Santiago, and the Pedernales-Cabo Rojo tourism megaproject worth $2.2 billion.
Properties near completed infrastructure projects in the Dominican Republic typically see a price premium of 10% to 20% compared to similar properties without the same access, based on historical patterns following road and airport improvements.
The neighborhoods that will benefit most from these infrastructure developments include Pedernales (new airport and resort zone), Santiago and surrounding Cibao Valley cities (airport expansion), and areas along the upgraded Duarte Highway corridor.
How will population growth and other factors impact property values in the Dominican Republic in 5 years?
The Dominican Republic's population is projected to grow at approximately 1% per year, and this steady growth, combined with increasing urbanization, is expected to support property values by creating sustained housing demand in Santo Domingo and Santiago.
The demographic shift with the strongest influence on property demand is the growth of middle-class households and the formation of new families seeking their first homes, which concentrates demand in affordable urban and suburban zones.
Migration patterns, both domestic (rural to urban) and international (diaspora returns and foreign retirees), are expected to boost property values in prime urban districts and lifestyle-focused coastal communities over the next five years.
The property types and areas that will benefit most from these demographic trends are condos in Santo Domingo's Distrito Nacional (serving professionals and young families) and resort properties in Punta Cana and Las Terrenas (serving retirees and lifestyle migrants).
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.
What is the 10 year property price outlook in the Dominican Republic?
What is the 10-year property price prediction for the Dominican Republic as of 2026?
As of early 2026, cumulative property price growth of 55% to 90% is expected over the next ten years in the Dominican Republic, which works out to roughly doubling of values at the upper end of the range.
The range of 10-year forecasts spans from a conservative 45% (assuming slower growth and periodic corrections) to an optimistic 100% (if infrastructure investments and tourism exceed expectations consistently).
This translates to a projected average annual appreciation rate of approximately 4.5% to 6.5% per year over the next decade in the Dominican Republic.
The biggest uncertainty factor in making 10-year property price predictions for the Dominican Republic is the long-term trajectory of tourism competitiveness, as new Caribbean destinations could emerge and climate-related risks may affect coastal properties.
What long-term economic factors will shape property prices in the Dominican Republic?
The top three long-term economic factors that will shape property prices in the Dominican Republic over the next decade are sustained GDP growth (projected at 4% to 5% annually), the continued expansion of tourism (targeting 15 million annual visitors by 2030), and infrastructure investments that improve connectivity and livability.
The single long-term economic factor with the most positive impact on property values is tourism growth, because it creates jobs, attracts foreign investment, and supports the short-term rental market that underpins coastal property demand.
The single long-term economic factor that poses the greatest structural risk to property values is income inequality and housing affordability for local buyers, which could eventually limit demand growth if wages don't keep pace with property prices.
You'll also find a much more detailed analysis in our pack about real estate in the Dominican Republic.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about the Dominican Republic, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Banco Central de la República Dominicana (BCRD) | The official central bank of the Dominican Republic, publishing macro and financial statistics. | We used it to anchor the big drivers behind housing demand, including interest rates, credit conditions, and inflation. We also kept our narrative consistent with official definitions. |
| BCRD Monetary Policy Report (June 2025) | An official BCRD report explaining the policy framework and macro backdrop. | We used it to frame how interest rates and inflation expectations feed into mortgage affordability and developer financing. |
| Oficina Nacional de Estadística (ONE) - Demographics | The official statistics agency for population and demographic structure. | We used it to ground medium and long-term demand forecasts based on household formation and urban growth pressure. |
| ONE - Direct Housing Construction Cost Index (ICDV) | An official index tracking direct housing construction costs in the Dominican Republic. | We used it to explain why new units reprice upward even when demand cools, and to separate price growth from cost-push inflation. |
| Superintendencia de Bancos (SB) | The banking regulator whose data reflects real lending conditions and credit growth. | We used it to triangulate mortgage availability and conditions, and to support the link between lending standards and price momentum. |
| IMF - Dominican Republic Country Page | A top-tier international institution with standardized macro forecasts and country surveillance. | We used it to anchor 2026 macro assumptions that matter for household income and buyer confidence. |
| Ministry of Tourism (MITUR) | The official government source for tourism performance data. | We used it to explain why coastal residential markets keep attracting investment and to justify stronger rental-driven demand. |
| Global Property Guide - Square Meter Prices | A widely used cross-country reference with methodology notes and comparable price data. | We used it as a sanity check for price-per-sqm levels in key hubs like Santo Domingo and Punta Cana. |
| Properstar - Santo Domingo Price Dashboard | A transparent, repeatable listing-based dataset with time-stamped updates. | We used it to estimate current price levels and recent growth in the capital's mainstream condo market. |
| Global Property Guide - Price History | An established market synopsis that clearly states which dataset it uses for growth rates. | We used it specifically for the direction and magnitude of recent year-over-year movement in asking prices. |
| Trading Economics - Dominican Republic Interest Rate | A reliable aggregator of central bank policy rate data with historical context. | We used it to track the BCRD benchmark rate and understand the direction of monetary policy. |
| The Global Economy - Mortgage Interest Rate | Aggregates mortgage rate data from official sources with historical comparisons. | We used it to understand how commercial bank mortgage rates have moved over time. |
| Dominican Today | A major English-language news source reporting on local economic and real estate developments. | We used it as a messenger for rate direction news and infrastructure announcements, not as a primary dataset. |
| ONE Open Data - Population Projections | ONE's official open-data distribution of demographic projections. | We used it as a machine-readable reference to validate the long-range outlook for housing demand. |
| Caribbean Journal | A respected regional publication covering Caribbean tourism and development. | We used it to track tourism milestones and visitor arrival records that affect property demand. |
| Trade Commissioner of Canada - Dominican Republic | Official Canadian government resource on infrastructure and investment opportunities. | We used it to understand the public-private partnership pipeline and major infrastructure projects. |
Get the full checklist for your due diligence in the Dominican Republic
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If you want to go deeper, you can read the following:
- Is now a good time to invest in property in The Dominican Republic?
- How much money do you need to retire in The Dominican Republic?