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Cabarete's housing market is experiencing strong momentum as of September 2025, with property prices averaging $2,150 USD per square meter and showing consistent 6-8% annual appreciation. The market benefits from tight inventory, robust tourist demand, and growing interest from international buyers seeking beachfront properties and vacation rentals.
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Cabarete's property market shows strong fundamentals with beachfront condos leading price appreciation at 8-10% annually, while rental yields remain attractive for short-term vacation properties.
The market outlook for 2025-2026 projects continued growth of 4-7% annually, driven by tourism recovery and limited supply in prime beachfront locations.
| Property Type | Average Price | Annual Appreciation | Rental Yield Potential |
|---|---|---|---|
| Beachfront Condos (2BR) | $200,000-$300,000 | 8-10% | 8-12% |
| Houses (per sq ft) | DOP 10,842 (~$180/sq ft) | 6-8% | 6-10% |
| Luxury Villas | $400,000+ | 7-9% | 10-15% |
| Inland Properties | $120,000-$200,000 | 4-6% | 5-8% |
| Development Land | $150-$300/sq m | 3-5% | N/A |
| Vacation Rentals (1BR) | $150,000-$250,000 | 9-12% | 12-18% |
| Gated Community Homes | $250,000-$500,000 | 7-10% | 8-12% |
What's the current average sale price for homes in Cabarete right now?
As of September 2025, residential properties in Cabarete average $2,150 USD per square meter, with beachfront properties commanding a 15% premium over this baseline rate.
Two-bedroom apartments typically range from $200,000 to $300,000, while the median price for houses sits around DOP 10,842 per square foot, which translates to approximately $1,100 USD per square meter at current exchange rates. Condos have experienced significant appreciation, with average prices climbing from $150,000 to $200,000 over the past three years.
Beachfront properties consistently outperform inland locations, with prime oceanfront condos and villas selling for 15-25% above the area average. Luxury developments in gated communities such as Perla Marina and Hispaniola Residencial command even higher premiums.
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How have home prices changed in the past 3 months compared to the past year?
Cabarete's property market demonstrated robust growth throughout 2024, with prices appreciating 6% for the full year, and projections indicate a 4% increase for 2025.
Over the past three years, the market has maintained consistent annual price growth averaging 8-10%. The most recent quarter (June-September 2025) showed a more moderate 1-3% uptick as the market stabilizes after recent surge periods. This moderation reflects natural market maturation rather than any fundamental weakness.
Beachfront properties have outpaced the overall market, with some premium locations experiencing double-digit appreciation over the 12-month period. The strongest performers include newly developed condos near Kite Beach and luxury villas in Encuentro Beach area.
The price growth trajectory indicates healthy market fundamentals supported by sustained demand from both international investors and tourism recovery.
What's the current average rental price for different property types in Cabarete?
Rental prices in Cabarete vary significantly by property type and location, with beachfront properties commanding substantial premiums over inland options.
| Property Type | Monthly Rental Range | Nightly Rate (Short-term) |
|---|---|---|
| 2-Bedroom Condos | $800 - $1,750 (avg $1,300) | $80 - $150 |
| 1-Bedroom Units | $715 - $800 | $80 - $100 |
| Beachfront Condos | $1,200 - $2,200 | $120 - $250 (high season) |
| Luxury Villas | $2,000 - $5,000+ | $200 - $500+ |
| Gated Community Homes | $1,500 - $3,000 | $150 - $300 |
| Inland Properties | $600 - $1,200 | $60 - $120 |
| Studios/Efficiency | $500 - $900 | $50 - $80 |
How much inventory is on the market right now, and how has it changed recently?
Cabarete's property inventory remains notably tight as of September 2025, particularly for beachfront and luxury developments that continue experiencing robust demand.
Limited new construction projects and quick sales have kept supply levels below pre-pandemic benchmarks. The combination of high demand from international buyers and restricted beachfront development opportunities has created a supply-demand imbalance favoring sellers. Most quality properties in prime locations receive multiple offers within the first month of listing.
New development projects are primarily focused on luxury segments and gated communities, with several major developments scheduled for completion in 2026. However, these additions will likely be absorbed quickly given current demand levels.
The tight inventory situation continues pushing up both sale and rental prices across all property categories, with beachfront properties experiencing the most acute shortage.
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Which neighborhoods in Cabarete are seeing the fastest price growth?
Several specific neighborhoods in Cabarete are experiencing accelerated price appreciation, driven by different market factors and development activities.
Encuentro Beach leads price growth with estimated annual appreciation of 10-15%, fueled by its surf culture appeal and eco-luxury development projects. The area attracts both adventure-seeking tourists and environmentally conscious investors willing to pay premium prices.
Cabarete East follows with 8-12% annual appreciation, benefiting from new development projects and its reputation for tranquility while maintaining beach access. Pro Cab maintains strong 8-10% growth due to its combination of beach access, lifestyle amenities, and nightlife proximity.
Hispaniola Residencial shows steady 7-9% appreciation, driven by expat community growth and infrastructure improvements that enhance long-term investment appeal.
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Which areas are currently the most affordable for buyers?
Budget-conscious buyers can find opportunities in several Cabarete neighborhoods that offer lower entry prices while maintaining growth potential.
Cabarete East provides the most accessible pricing for new construction, with developers offering competitive rates to establish market presence in this emerging area. Hillside and inland communities deliver significantly more space per dollar compared to beachfront locations, typically offering 20-30% cost savings.
La Isla and Pueblo de los Pescadores maintain authentic local character with affordable pricing, though these areas still experience modest price appreciation. These neighborhoods appeal to buyers seeking cultural immersion alongside investment potential.
Properties located 5-10 minutes from the beach offer substantial savings while maintaining reasonable access to Cabarete's main attractions and amenities.
What's the average time a property stays on the market before selling?
Cabarete's property market demonstrates strong liquidity, with most well-priced properties selling relatively quickly depending on location and condition.
Prime beachfront properties typically sell within 60-90 days, reflecting high demand from international buyers and investors. Properties in prestigious developments or with unique features often receive offers within the first month of listing.
Inland or older properties may remain on the market for up to six months, though overall days-on-market metrics continue trending downward due to sustained buyer demand. Properties priced competitively for their location and condition consistently outperform market averages.
The seller's market conditions favor properties that are properly staged, professionally marketed, and realistically priced for current market conditions.
How are condos, villas, and land performing differently in terms of demand and price changes?
Different property types in Cabarete show distinct performance patterns based on buyer preferences and market dynamics.
Condos demonstrate the strongest demand and sharpest price appreciation at 8-10% annually, particularly 1-2 bedroom beachfront units that appeal to vacation rental investors. High rental yields and occupancy rates make condos attractive for both cash flow and appreciation strategies.
Villas experience steady appreciation, especially in gated communities and luxury developments, attracting both investors and expat families seeking permanent residences. Premium villas with ocean views or unique architectural features command significant price premiums.
Land appreciation proceeds more slowly unless located near new developments or beach access, but momentum is building as inventory shrinks for completed properties. Development land near planned infrastructure projects shows the strongest growth potential.
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.
What are the short-term forecasts for prices and sales activity over the next 3–6 months?
Cabarete's property market outlook for the remainder of 2025 and early 2026 indicates continued growth momentum across most property segments.
Prices are projected to rise 3-8% over the next six months, with high-demand neighborhoods like Encuentro Beach and Pro Cab leading appreciation. Tourism growth continues supporting rental demand, particularly for short-term vacation properties that peak during winter holiday periods.
Sales activity should remain robust through the traditional high season (December-April), when international buyers typically make purchasing decisions. Inventory constraints will likely persist, maintaining upward pressure on prices.
New development completions scheduled for early 2026 may provide some inventory relief, though pre-sales indicate strong absorption rates for quality projects.
What's the medium-term outlook for the next 1–3 years?
The three-year outlook for Cabarete's property market remains positive, with annual price growth projected at 5-7% through 2028.
Beachfront and luxury properties should continue outperforming the broader market due to limited supply and sustained international demand. New infrastructure projects and tourism development initiatives will support value growth, though appreciation rates may moderate as the market matures.
Potential risks include currency fluctuations affecting international buyer purchasing power and possible overbuilding in non-premium segments. However, Cabarete's established reputation as a premium beach destination should provide market resilience.
The medium-term outlook favors properties in established neighborhoods with proven rental performance and proximity to beach access or unique lifestyle amenities.
Where should a buyer focus if they want the best potential for rental income?
Several specific areas in Cabarete offer superior rental income potential based on location, property type, and target market appeal.
- Kite Beach area: Generates premium nightly rates due to world-class kitesurfing conditions and beachfront access
- Pro Cab district: Combines beach proximity with nightlife access, appealing to diverse tourist demographics
- Encuentro Beach: Attracts surf enthusiasts and eco-tourists willing to pay premium rates for unique experiences
- Ocean Dream development: Offers modern amenities and beachfront access with strong occupancy rates
- Gated communities: Perla Marina and Hispaniola Residencial provide security and amenities for longer-term rentals
Smaller 1-2 bedroom condos consistently achieve the highest rental yields due to strong demand from tourists and digital nomads. Properties with ocean views, modern amenities, and professional management typically command 20-30% rental premiums.
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Which property types and areas look most promising for resale value growth?
Several property categories and locations in Cabarete show exceptional potential for long-term resale value appreciation.
Beachfront condos and villas continue demonstrating the strongest price appreciation trends, particularly properties with direct ocean access or unobstructed views. These properties benefit from limited supply and consistent international demand.
Encuentro Beach and Cabarete East represent emerging growth areas where rapid development and lifestyle appeal drive value increases. Properties in these locations often appreciate faster than the overall market average.
Eco-friendly and sustainable development projects attract premium pricing as buyer preferences increasingly favor environmentally conscious properties. Green building features and energy-efficient systems command resale premiums.
Luxury developments with unique architectural features, premium amenities, and professional management consistently outperform generic properties in resale value growth.
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.
Cabarete's property market represents a compelling investment opportunity with strong fundamentals supporting continued growth through 2028.
The combination of limited beachfront inventory, robust tourism demand, and emerging neighborhood development creates favorable conditions for both rental income and capital appreciation strategies.
Sources
- The LatinVestor - Cabarete Real Estate Market Analysis
- The LatinVestor - Cabarete Price Forecasts
- Properstar - Cabarete House Prices
- Blue Sail Realty - Dominican Republic Market Trends
- The LatinVestor - Cabarete Real Estate Trends
- AirROI - Cabarete Rental Market Report
- The LatinVestor - Cabarete Property Investment Guide
- Blue Sail Realty - Cabarete Vacation Home Guide