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The Dominican Republic offers significantly more affordable property prices than Puerto Rico, with average costs of $163 per square foot compared to Puerto Rico's $267-$522 range.
Dominican Republic properties provide better value for money across most market segments, with lower purchase prices, property taxes, and utility costs. Puerto Rico compensates with stronger legal protections, better financing options, and tax incentives for qualified investors under Act 60. Both markets show strong growth potential, but the Dominican Republic offers higher rental yields and lower entry barriers for foreign investors.
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.
Dominican Republic property costs average $163/sq ft while Puerto Rico ranges from $267-$522/sq ft in prime areas.
The Dominican Republic offers lower property taxes, utility costs, and better rental yields, making it the more affordable option for most investors.
| Metric | Dominican Republic | Puerto Rico |
|---|---|---|
| Average Price/sq ft | $163 (city avg), $220 (prime) | $267 (city avg), $522-$790 (prime) |
| Land Price/sq ft | $5-$20 (rural), $20-$60+ (coastal) | $2-$4 (rural), $15-$55+ (urban) |
| 1BR Rent (center) | $285-$605/month | $943-$1,634/month |
| Property Tax | 1% above ~$170,000 | 0.3-1.1% + incentives |
| Mortgage Rates | 6-12% | 5-6% |
| Utilities (915 sq ft) | $58-$66/month | $130-$160/month |
| Rental Yield | 6-10% | 5.2% average |
What is the average cost per square foot for property in the Dominican Republic?
The average cost per square foot for property in the Dominican Republic is $163 as of September 2025.
Prime condominiums and apartments in tourist areas like Punta Cana and Casa de Campo reach $220-$230 per square foot. Rural and interior locations offer significantly lower prices, often below $100 per square foot for basic properties.
Santiago properties average around $140 per square foot, while Santo Domingo city center ranges from $180-$200 per square foot. Beach towns like Puerto Plata offer middle-ground pricing at $150-$170 per square foot.
New construction developments command premium prices, typically 15-25% above average market rates. Luxury oceanfront properties can exceed $300 per square foot in exclusive enclaves.
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How does the cost of property in Puerto Rico compare to the Dominican Republic on average?
Puerto Rico property costs significantly more than the Dominican Republic, with average prices ranging from $267-$522 per square foot compared to the Dominican Republic's $163 average.
San Juan and metro areas typically cost $267 per square foot for standard properties, while prime locations reach $522 per square foot. Luxury oceanfront condos in Condado command up to $790 per square foot.
New construction in Puerto Rico often exceeds $300 per square foot, making it nearly double the Dominican Republic's average. Even Puerto Rico's most affordable areas cost more than most Dominican Republic prime locations.
The price gap widens when comparing luxury segments - Puerto Rico's high-end properties range from $2-10+ million, while similar Dominican Republic properties cost 40-60% less. This price differential makes the Dominican Republic attractive for budget-conscious investors seeking Caribbean exposure.
Are there specific regions in the Dominican Republic that are more affordable than Puerto Rico?
Most Dominican Republic regions remain significantly more affordable than even Puerto Rico's least expensive areas.
Santiago offers properties at $140 per square foot, roughly half of Puerto Rico's cheapest metro areas. Interior rural regions provide land at $5-$10 per square foot compared to Puerto Rico's rural minimum of $15-$25 per square foot.
Puerto Plata properties average $150-$170 per square foot, still 35-40% below Puerto Rico's entry-level pricing. Smaller towns like La Romana and Barahona offer exceptional value at $120-$140 per square foot.
Only exclusive Dominican Republic enclaves like Casa de Campo and premium Punta Cana developments approach Puerto Rico pricing levels. These represent less than 5% of the Dominican Republic market, leaving 95% of regions substantially more affordable than Puerto Rico alternatives.
What is the cost of land in Puerto Rico compared to the Dominican Republic?
Puerto Rico land costs vary dramatically by location, from $2-$4 per square foot in rural areas to $15-$55+ per square foot in high-demand zones.
| Location Type | Puerto Rico ($/sq ft) | Dominican Republic ($/sq ft) |
|---|---|---|
| Rural/Interior | $2-$4 | $5-$10 |
| Urban/Coastal | $15-$55+ | $20-$60+ |
| Prime Beachfront | $40-$85+ | $25-$70+ |
| Mountain Views | $8-$20 | $6-$15 |
| City Center | $25-$75+ | $30-$80+ |
Dominican Republic urban and tourist zones command $20-$60 per square foot, with rural parcels under $5-$10 per square foot. Prime Dominican Republic beachfront land costs 25-40% less than equivalent Puerto Rico locations, providing better value for development projects.
How do taxes on property ownership differ between Puerto Rico and the Dominican Republic?
The Dominican Republic charges 1% annual property tax on properties above approximately $170,000 USD, with numerous exemptions for lower-value, rural, historic, and tourism-exempt properties.
Puerto Rico property taxes range from 0.3-1.1% annually with municipal surcharges, but Act 60 provides significant tax incentives for new residents and qualifying investors. Transfer taxes in the Dominican Republic are 3% of appraised value, while Puerto Rico charges approximately 1% government stamp tax plus legal fees.
Capital gains taxation favors Puerto Rico for qualifying Act 60 participants who often receive exemptions, while the Dominican Republic taxes capital gains as regular income up to 25%. Property tax exemptions in the Dominican Republic are more widespread, particularly for rural and lower-value properties.
Overall tax burden typically favors the Dominican Republic for most standard property owners, while Puerto Rico benefits high-net-worth individuals qualifying for Act 60 incentives.
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What are the average prices for rental properties in the Dominican Republic?
Dominican Republic rental prices offer excellent affordability compared to Caribbean alternatives, with one-bedroom city center apartments averaging $285-$605 per month.
1. **Studio Apartments**: $235-$400/month in city centers, $180-$320/month outside centers 2. **One-Bedroom Units**: $285-$605/month in prime locations, $220-$450/month in secondary areas 3. **Two-Bedroom Apartments**: $450-$850/month in desirable neighborhoods, $350-$650/month elsewhere 4. **Three-Bedroom Houses**: $600-$1,200/month in suburban areas, $800-$1,800/month in prime zones 5. **Luxury Villas**: $1,000-$3,000/month in non-tourist areas, up to $10,000+/month in exclusive locationsTourist rental properties in Punta Cana and Casa de Campo command premium rates of $1,000-$3,000+ monthly for quality condominiums. Rental yields typically range from 6-10% annually in tourist-focused areas, significantly exceeding most Caribbean markets.
What is the price range for luxury properties in Puerto Rico?
Puerto Rico luxury properties command premium pricing, with high-end condominiums in Condado and Dorado ranging from $555-$790 per square foot.
Luxury condominiums typically sell for $2-10+ million, with San Juan historic and oceanfront properties averaging $509-$701 per square foot. High-end city and beachfront homes commonly exceed $1.5-5 million in established neighborhoods.
Premium developments in areas like Dorado Beach and Palmas del Mar feature properties starting at $3 million and reaching $15+ million for estate-sized oceanfront homes. Penthouse condominiums in San Juan's Condado district regularly exceed $5 million.
The luxury segment drives Puerto Rico's real estate market, with international buyers seeking US territory benefits and tax advantages. Maintenance fees for luxury condominiums range from $200-$800 monthly, adding to ownership costs.
How much do utilities and maintenance costs typically run for properties in both locations?
Dominican Republic utilities for a 915 square foot apartment average $58-$66 monthly, while Puerto Rico costs $130-$160 monthly for similar spaces.
Dominican Republic electricity costs remain lower due to government subsidies and regional pricing structures. Air conditioning usage significantly impacts costs, with luxury villas potentially reaching $150-$200 monthly during peak seasons.
Puerto Rico electricity costs run 20-30% above US mainland averages, with water averaging $70 monthly and internet $60 monthly. Maintenance fees in prime Puerto Rico condominiums range from $200-$800 monthly, depending on amenities and location.
Total utility and maintenance costs in the Dominican Republic typically run 40-50% below Puerto Rico equivalents. Property management fees in the Dominican Republic average 8-12% of rental income, while Puerto Rico charges 10-15% for similar services.
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.
Are property prices in the Dominican Republic rising faster than in Puerto Rico?
Both markets show strong growth, but Dominican Republic coastal and tourism segments are experiencing faster appreciation than Puerto Rico's broader market.
Dominican Republic property prices are growing 7-12% annually as of 2025, with some coastal and luxury segments exceeding these rates. Prime tourist areas like Punta Cana and Cap Cana show the strongest growth momentum.
Puerto Rico median home prices increased 11.6% in Q1 2025, with luxury segments experiencing some of the Caribbean's highest jumps. However, this growth is more concentrated in established premium areas rather than across the entire market.
The Dominican Republic's growth is driven by increasing foreign investment, infrastructure development, and tourism expansion. Puerto Rico's appreciation stems largely from tax incentive programs and mainland US investor demand, creating more selective growth patterns.
It's something we develop in our Dominican Republic property pack.
What are the legal requirements for foreign investors buying property in the Dominican Republic versus Puerto Rico?
The Dominican Republic imposes no restrictions on foreign property ownership, granting foreigners the same rights as local citizens.
Dominican Republic requirements include obtaining a tax identification number and completing standard registration procedures with transfer and annual taxes. The process is straightforward, typically completed within 30-45 days with proper documentation.
Puerto Rico also allows unrestricted foreign ownership, following similar procedures to mainland US state law processes. Titles, notarial, and escrow procedures are required, with greater familiarity needed for US legal systems.
Both jurisdictions offer secure ownership rights, but the Dominican Republic process is often simpler for non-US citizens. Legal costs in the Dominican Republic average 2-3% of purchase price, while Puerto Rico legal fees range 3-4% due to more complex US-based procedures.
How does the availability of financing and interest rates compare between the two locations?
Puerto Rico offers superior financing options with average 20-year fixed rates of 5-6% for qualified buyers, including US nationals and qualifying foreigners.
| Financing Aspect | Dominican Republic | Puerto Rico |
|---|---|---|
| Mortgage Availability | Available to foreigners | Widely available |
| Interest Rates | 6-12% (up to 12% non-residents) | 5-6% fixed rates |
| Down Payment | 25-40% typically required | 10-20% for qualified buyers |
| Loan Terms | 15-20 years maximum | 15-30 years available |
| Documentation | Extensive income verification | US-standard requirements |
| Currency Risk | USD loans available | No currency risk (USD) |
Dominican Republic banks offer mortgages to foreigners but typically require higher down payments and charge premium rates for non-residents. Puerto Rico's integration with US banking systems provides more favorable terms and longer repayment periods.
What are the long-term investment prospects for property in Puerto Rico versus the Dominican Republic?
The Dominican Republic projects annual price growth of 3-8% regionally, with highest appreciation in coastal and tourist zones offering rental yields of 6-10%.
Dominican Republic advantages include liberal foreign ownership rules, rising infrastructure investment, and expanding tourism sectors. The market benefits from political stability and growing middle-class domestic demand.
Puerto Rico offers robust recent appreciation driven by tax policies and US mainland investor demand, with moderate rental yields around 5.2%. Long-term upside is driven by US territory benefits, global demand, and supply limitations in prime areas.
Dominican Republic provides higher potential returns through rental yields and capital appreciation, while Puerto Rico offers stability through US legal protections and currency stability. Both markets show strong long-term fundamentals, with the Dominican Republic favoring growth-oriented investors and Puerto Rico suiting stability-focused portfolios.
It's something we develop in our Dominican Republic property pack.
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.
The Dominican Republic clearly emerges as the more affordable Caribbean property investment option, offering significantly lower purchase prices, operational costs, and higher rental yields than Puerto Rico.
While Puerto Rico provides superior financing options and US legal protections, the Dominican Republic's cost advantages and investment returns make it the preferred choice for budget-conscious investors seeking Caribbean real estate exposure.
Sources
- TheLatinvestor - Average House Prices Dominican Republic
- Blue Sail Realty - Exploring Real Estate in Dominican Republic
- Realtor.com - San Juan Puerto Rico Overview
- Numbeo - Property Investment Comparison
- International Investment - Dominican Republic Market Growth
- InvestAtePR - Puerto Rico Luxury Market Report 2025
- Christie's Real Estate PR - Property Taxes
- GTA Homes - Dominican Republic Real Estate Taxes
- Everything Punta Cana - Rental Costs Dominican Republic
- Global Property Guide - Dominican Republic Price History