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Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
As of September 2025, the Dominican Republic presents one of the most attractive property investment opportunities in the Caribbean.
Property prices are rising steadily with average apartment prices reaching $1,980/m² (up 7% year-over-year) and houses averaging $1,569/m² (up 5% yearly), while the government actively supports foreign investment through generous tax incentives and unrestricted ownership policies. The economy is performing strongly with GDP expected to grow 4-5% in 2025, tourism contributing over $21 billion annually, and rental yields averaging 6-10% in key tourist areas like Punta Cana, Cap Cana, and Samaná Peninsula.
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.
The Dominican Republic's real estate market is experiencing robust growth with property prices rising 5-7% annually and strong government support for foreign buyers.
Key tourist areas offer rental yields of 6-10% while financing is available to foreigners at 6-9% interest rates with reasonable terms.
| Market Aspect | Current Status | 2025-2026 Outlook |
|---|---|---|
| Property Prices | Rising 5-7% annually | Continued growth expected |
| Economy | 4-5% GDP growth projected | Strong fundamentals |
| Foreign Investment | No ownership restrictions | Government incentives continue |
| Interest Rates | 6-9% for foreigners | Stable through 2026 |
| Rental Yields | 6-10% in tourist areas | Strong demand continues |
| Best Locations | Punta Cana, Cap Cana, Samaná | 25-35% growth by 2030 |
| Property Tax | 1% annually (exemptions apply) | CONFOTUR incentives available |
What is the current real estate market trend in the Dominican Republic?
The Dominican Republic real estate market is experiencing a significant growth phase as of September 2025.
Property demand remains strong from both domestic and foreign buyers, with the luxury and tourist-focused segments leading the charge. Tourist destinations like Punta Cana, Cap Cana, Cabarete, and the Samaná Peninsula are seeing the fastest appreciation rates in the market.
The market continues to benefit from robust tourism infrastructure investments and government policies that actively encourage foreign property investment. Major international hotel chains and resort developers are expanding their presence, creating additional demand for both residential and commercial properties in key coastal areas.
Compared to other Caribbean destinations, the Dominican Republic remains competitively priced, with properties still trading 20-30% below comparable markets in Puerto Rico or Jamaica. However, this price gap is steadily closing due to consistent appreciation across all property segments.
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Are property prices in the Dominican Republic rising or falling?
Property prices in the Dominican Republic are definitively rising across all major markets as of September 2025.
Average apartment prices have reached $1,980 per square meter, representing a 7% year-over-year increase, while house prices average $1,569 per square meter with a 5% annual growth rate. These figures reflect consistent upward pressure on real estate values throughout the country.
The luxury segment in prime tourist areas is experiencing even stronger price appreciation, with some beachfront properties in Cap Cana and Punta Cana seeing double-digit annual growth. Properties in emerging areas like Las Terrenas and Cabarete are also benefiting from improved infrastructure and increased international attention.
Market analysts project continued price growth of 5-8% annually in key tourist areas and 3-5% annual growth in urban centers like Santo Domingo. This sustained appreciation is driven by limited high-quality inventory, growing foreign demand, and ongoing infrastructure improvements.
The pricing trend shows no signs of reversing, with forecasts indicating cumulative property value gains of 25-35% by 2030 in prime locations.
How is the economy performing in the Dominican Republic right now?
The Dominican Republic's economy is performing exceptionally well as of September 2025, significantly outpacing regional peers.
GDP growth is projected at 4-5% for 2025, making it one of the strongest-performing economies in the Caribbean and Latin America. This robust economic performance is primarily driven by a thriving tourism sector that contributes over $21 billion annually and employs nearly 18% of the national workforce.
Economic stability is further reinforced by comprehensive government reforms and substantial public investment in infrastructure projects including new airports, highway expansions, and digital connectivity improvements. These investments are creating positive spillover effects across multiple sectors, including real estate.
The country's financial sector remains healthy with stable banking institutions offering competitive lending rates and expanding credit availability for both residents and foreign investors. Foreign direct investment continues to flow into various sectors, with real estate being a primary beneficiary.
Inflation remains manageable, and the peso has maintained relative stability against the US dollar, providing additional confidence for international property investors.
Is there any government policy or incentive to attract foreign property buyers?
| Incentive Program | Benefits | Duration |
|---|---|---|
| CONFOTUR Law | Exempt from 1% annual property tax | 10-15 years |
| CONFOTUR Transfer Tax | Exempt from 3% transfer tax | At purchase |
| Senior Citizen Exemption | Property tax exemption for retirees over 65 | Permanent (no residency required) |
| No Ownership Restrictions | Foreigners can own property without limitations | Permanent |
| Tourism Zone Benefits | Additional tax advantages in designated areas | Varies by zone |
| Investment Residency | Residency pathway for property investors | Renewable |
| Repatriation Rights | Full repatriation of investment and profits | Permanent |
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What is the forecast for interest rates in the Dominican Republic?
Interest rates for foreign property buyers in the Dominican Republic are expected to remain relatively stable through 2026.
Current mortgage rates for foreigners typically range from 6-9% for property loans, with loan terms extending up to 20-25 years and down payment requirements of 20-50% of the property value. These rates are competitive compared to other Caribbean markets and reflect the country's stable banking sector.
Local banks including Scotiabank, Banco Popular, and others have developed specialized programs specifically for non-resident buyers, though the approval process requires comprehensive documentation including proof of income, employment verification, and substantial financial reserves.
Banking sector analysts predict only minor fluctuations in interest rates over the next 18-24 months, with any changes likely to be in response to broader regional economic trends rather than local monetary policy shifts. The Central Bank's conservative approach to monetary policy supports this stability.
Financing remains accessible for qualified foreign buyers, with some lenders offering preferential rates for properties in government-designated tourism zones or for buyers making larger down payments.
Are there specific areas in the Dominican Republic with higher potential for growth?
Several specific regions in the Dominican Republic demonstrate exceptional growth potential for property investors as of September 2025.
- Cap Cana: This ultra-luxury resort area continues to attract high-net-worth international buyers and is projected to see 30-40% property value appreciation by 2030.
- Punta Cana: The country's most established tourist destination offers consistent rental yields of 8-12% annually with strong infrastructure and international airport connectivity.
- Samaná Peninsula (Las Terrenas): An emerging luxury market benefiting from new airport construction and increasing European buyer interest, with properties appreciating 15-20% annually.
- Cabarete: Popular with water sports enthusiasts and digital nomads, offering excellent rental potential and growing property values in the beachfront sector.
- Puerto Plata: Benefiting from cruise ship tourism growth and new marina developments, making it attractive for both residential and commercial investment.
- La Romana (Casa de Campo area): Established luxury market with golf courses and marina facilities, showing steady appreciation and strong rental demand.
- Sosúa: Affordable entry point for foreign buyers with growing expat community and improving infrastructure connections.
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What is the demand like for rental properties in the Dominican Republic?
Rental property demand in the Dominican Republic is exceptionally strong across multiple market segments as of September 2025.
Tourist areas are experiencing particularly robust demand, with short-term rental properties on platforms like Airbnb and VRBO generating rental yields of 6-10% annually, among the highest in the Caribbean region. Beach destinations like Punta Cana, Cap Cana, and Cabarete are especially lucrative for vacation rental investors.
The long-term rental market is also thriving, driven by growing numbers of remote workers, digital nomads, and expatriates choosing the Dominican Republic as their base. Cities like Santo Domingo are seeing increased demand for modern apartments and houses from international professionals and local residents with rising incomes.
Luxury rental properties in gated communities and beachfront locations command premium rates, particularly during peak tourist seasons from December through April. Properties with amenities like pools, security, and proximity to golf courses or beaches achieve the highest occupancy rates and rental income.
The government's promotion of the country as a digital nomad destination and retirement haven continues to fuel demand across all rental property categories.
How easy is it to get a mortgage or financing as a foreigner in the Dominican Republic?
Obtaining mortgage financing as a foreigner in the Dominican Republic is achievable but requires thorough preparation and documentation.
Major local banks including Scotiabank, Banco Popular, and BanReservas offer specialized mortgage programs for non-residents, with approval rates varying based on income verification, credit history, and down payment capacity. The process typically takes 60-90 days from application to approval.
Required documentation includes proof of income for the past 24-36 months, employment verification letters, bank statements, credit reports from your home country, and substantial financial reserves beyond the down payment. Most lenders require borrowers to maintain a Dominican bank account throughout the loan term.
Down payment requirements range from 20-50% of the property value, with larger down payments often securing better interest rates and loan terms. Some lenders offer more favorable conditions for properties in government-designated tourism zones or for borrowers with significant asset portfolios.
Alternative financing options include developer financing programs, which some major resort and residential projects offer directly to international buyers with more flexible terms than traditional bank mortgages.
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 there any risks associated with buying property in the Dominican Republic?
While the Dominican Republic offers attractive investment opportunities, several risks require careful consideration and mitigation strategies.
- Natural Disaster Risk: The country is susceptible to hurricanes and tropical storms, particularly between June and November, which can damage properties and disrupt tourism-dependent rental income.
- Title and Legal Issues: Occasional irregularities in property titles, incomplete documentation, or disputes over land ownership can create legal complications for unwary buyers.
- Developer Risk: Some developments may face construction delays, quality issues, or financial difficulties, particularly in emerging markets or with lesser-known developers.
- Market Volatility: Tourism-dependent areas can experience rental income fluctuations based on global economic conditions, travel restrictions, or geopolitical events.
- Currency Risk: Properties priced in US dollars provide some protection, but local operating costs in Dominican pesos can be affected by exchange rate fluctuations.
- Bureaucratic Challenges: Processing permits, licenses, and tax compliance can be time-consuming and complex without proper local legal representation.
- Infrastructure Dependencies: Some emerging areas may lack reliable utilities, internet connectivity, or transportation links necessary for successful property operations.
What are the long-term prospects for the Dominican Republic's real estate market?
The long-term outlook for the Dominican Republic's real estate market is highly positive, supported by strong fundamental drivers.
Market analysts project continued annual price growth of 5-8% in key tourist areas and 3-5% in urban centers through 2030, driven by limited high-quality inventory, growing foreign demand, and ongoing infrastructure investments. The government's commitment to tourism development and foreign investment attraction provides a stable policy framework for sustained growth.
The country's positioning as a premier Caribbean destination for both tourism and expatriate living continues to strengthen, with new resort developments, improved transportation infrastructure, and expanding international flight connectivity enhancing market accessibility. Major hotel chains and international developers are making long-term commitments to the market.
Demographic trends favor continued real estate demand, with growing numbers of North American and European retirees choosing the Dominican Republic, increasing remote work adoption driving relocation decisions, and a rising local middle class expanding domestic demand for quality housing.
The market's resilience during global economic uncertainties, combined with its relatively affordable entry points compared to other Caribbean destinations, positions it favorably for sustained long-term appreciation.
It's something we develop in our Dominican Republic property pack.
How stable is the political environment in the Dominican Republic?
The political environment in the Dominican Republic is considered stable and supportive of foreign investment as of September 2025.
The current government maintains pro-business policies and has consistently supported foreign direct investment, particularly in tourism and real estate sectors. Democratic institutions function effectively, and peaceful transfers of power have been the norm, providing confidence for long-term property investors.
Economic policies remain focused on maintaining macroeconomic stability, controlling inflation, and promoting sustainable growth through infrastructure development and foreign investment attraction. The government's commitment to the CONFOTUR law and other foreign investor incentives demonstrates policy continuity across different administrations.
International relations are stable, with strong ties to the United States, European Union, and regional neighbors. The country maintains membership in various international trade agreements and economic partnerships that support its market economy orientation.
While economic growth remains subject to external factors such as US economic cycles and global tourism fluctuations, the underlying political framework provides a solid foundation for property investment decisions.
What are the associated taxes and costs of owning property in the Dominican Republic?
| Tax/Cost Type | Rate/Amount | Notes |
|---|---|---|
| Property Transfer Tax | 3% of sale price | Exemptions available under CONFOTUR |
| Annual Property Tax (IPI) | 1% of assessed value | Only on properties exceeding ~$166,000 USD |
| Legal/Closing Fees | 1.5-2.5% of purchase price | For legal and administrative costs |
| Retiree Tax Exemption | 0% property tax | For owners over 65 (no residency required) |
| CONFOTUR Exemption | 0% property tax for 10-15 years | Tourism-related properties only |
| HOA/Condo Fees | Variable | Depends on amenities and location |
| Rental Income Tax | 25% on net income | For non-residents |
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.
September 2025 represents an opportune time to invest in Dominican Republic real estate, with property prices rising steadily, government incentives supporting foreign buyers, and strong rental demand across key tourist areas.
The combination of economic stability, attractive financing options, and projected long-term appreciation makes the Dominican Republic one of the Caribbean's most compelling property investment destinations for both residential and investment purposes.
Sources
- AreaVista - Dominican Republic Real Estate Investment Growth
- The LatinVestor - Dominican Property Investment Guide
- Connect International - Dominican Tourism Real Estate
- Fitch Solutions - Dominican Republic Economic Outlook
- World Bank - Dominican Republic Overview
- Simply Dominican - Tax Incentives for Investors
- Chambers Practice Guide - Dominican Real Estate
- RealtorDR - Property Tax Guide