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The Dominican Republic housing market continues its strong performance in 2025, with apartment prices rising 10.7% year-on-year and house prices climbing 11.6%.
As of September 2025, the Dominican Republic residential market shows remarkable momentum driven by foreign investment and tourism demand. Coastal areas like Punta Cana, Cabarete, and Las Terrenas are experiencing the fastest price growth, while rental yields remain among the highest globally at 7.48% on average. The market offers compelling opportunities across all budget ranges, from under-$150,000 condos in tourist zones to luxury oceanfront properties exceeding $500,000 in premium gated communities.
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 property market is experiencing sustained growth with double-digit price increases and high rental yields.
Tourist coastal areas dominate performance while urban centers offer stable long-term rental opportunities.
| Market Metric | Current Status (Sep 2025) | 12-Month Change |
|---|---|---|
| Average Apartment Price | US$2,200/m² | +10.7% |
| Average House Price | US$1,760/m² | +11.6% |
| National Rental Yield | 7.48% | Stable/Improving |
| Tourist Area Occupancy | 70-85% (high season) | +5-8% |
| Fastest Growing Region | Cabarete/Sosúa | +8-10% |
| Best Entry Budget | Under $150,000 | Punta Cana condos |
| Resale Timeline | 3-12 months | Prime locations faster |
How have property prices changed in the Dominican Republic over the past year?
Dominican Republic property prices surged significantly in the past 12 months, with apartments rising 10.7% year-on-year to approximately US$2,200 per square meter as of September 2025.
Houses experienced even stronger growth at 11.6%, reaching an average of US$1,760 per square meter. These increases represent real gains of 6.6% for apartments and 7.5% for houses after adjusting for inflation.
The price momentum has accelerated compared to 2024, primarily driven by increased demand from foreign buyers and the recovering tourism sector. Coastal tourist areas are leading this growth, with some regions seeing even higher appreciation rates than the national average.
Current median prices stand at approximately DOP 132,801 per square meter for apartments and DOP 107,182 per square meter for houses, though individual regions show significant variation from these national averages.
Which areas are experiencing the fastest price growth right now?
Punta Cana leads the Dominican Republic's fastest-growing markets with annual price increases of 7-8%, currently averaging US$1,980 per square meter.
Cabarete and Sosúa are experiencing the strongest growth rates at 8-10% annually, with prices reaching up to US$2,700 per square meter in premium locations. Las Terrenas follows closely with 4-8% annual growth and prices ranging from US$2,000-2,500 per square meter.
Santo Domingo, the capital city, shows steady growth of 5-7% annually with more affordable prices around US$1,475 per square meter. These urban markets benefit from strong local demand and infrastructure improvements.
In contrast, Puerto Plata shows slower growth at 3-5% annually as it represents a more mature market with limited upside potential. Interior and rural regions are experiencing stagnation or even declining values due to limited tourism and economic activity.
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What's the short-term outlook for the next 6-12 months?
Dominican Republic residential prices are forecast to increase 7-12% by the end of 2025, with tourist and coastal markets leading this growth trajectory.
Tourist zones are expected to see 5-8% annual appreciation, particularly around airport areas and new transport hubs that improve accessibility. The strong tourism recovery and increasing foreign investment continue to drive demand in these prime locations.
Property inventory remains tight in the most sought-after markets, which supports continued price appreciation. Transaction volumes are expected to rise moderately as new supply comes online and foreign interest continues to strengthen.
As of September 2025, the momentum shows no signs of slowing, with pre-sales of new developments in Punta Cana and Cabarete indicating sustained buyer confidence through early 2026.
What does the medium-term forecast look like for 2-3 years?
The Dominican Republic real estate market is projected to maintain stable demand with 3-7% average yearly appreciation in prime locations through 2027-2028.
Key infrastructure projects including new highways, airport expansions, and digital infrastructure upgrades will particularly boost property values in Punta Cana, Las Terrenas, Cabarete, and Sosúa. Record foreign direct investment levels support this positive outlook.
New eco-resorts and tourism developments are planned across the North Coast and eastern regions, creating additional demand for both investment and residential properties. The government's focus on sustainable tourism development provides a stable foundation for growth.
Potential risks include regulatory changes affecting foreign ownership and possible delays in infrastructure project delivery, which could impact certain speculative zones. However, the overall trajectory remains positive given the country's tourism-dependent economy and increasing expat migration.
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How does the long-term perspective look for the next 5-10 years?
The Dominican Republic property market outlook for 2030 projects 25-35% cumulative price growth in prime areas, supported by sustained tourism demand and expat migration.
Market stability appears very favorable relative to the region, with a strong currency, active lending environment, and stable government providing a solid foundation for long-term investment. The country's position as a preferred Caribbean destination continues to strengthen.
Infrastructure investments in renewable energy, transportation, and digital connectivity will likely create new growth corridors beyond current hotspots. Climate change adaptation measures and sustainable development initiatives should enhance long-term property values.
Potential risks include new short-term rental regulations that could affect Airbnb income and increasing hurricane insurance costs due to climate change. However, the overall fundamentals remain strong for sustained appreciation through 2030 and beyond.
What are the current rental yields across different property types?
The Dominican Republic offers exceptional rental yields averaging 7.48% gross nationally, ranking among the highest globally for residential properties.
| Location | Property Type | Rental Yield Range |
|---|---|---|
| Punta Cana | Tourist Condos | 8-12% |
| Cabarete/Sosúa | Beachfront Properties | 6-11% |
| Las Terrenas | Vacation Rentals | 7-10% |
| Santo Domingo | Long-term Rentals | 5-8% |
| Bávaro | Resort Condos | 9-13% |
Prime zones on the North Coast including Cabarete and Sosúa, along with Punta Cana, consistently yield 6-12% annually. These areas benefit from strong tourist demand and limited supply.
Compared to last year, yields are steady to improving due to rising tourism numbers, though high inflation modestly compresses real returns. The market remains attractive for income-focused investors seeking strong cash flow.
How strong is rental demand in tourist areas versus cities?
Tourist areas in the Dominican Republic show robust seasonal demand with occupancy rates of 70-85% during high season and 50-65% during low season.
Cities like Santo Domingo maintain exceptionally high occupancy rates of 95%+ for quality long-term rentals, driven by local professionals, students, and corporate contracts. Urban rental markets offer more stability but lower yields than tourist areas.
Demand drivers in tourist zones include vacationers, digital nomads, retirees, and corporate groups, particularly in expat-friendly coastal towns. The growing remote work trend has increased demand for longer-term tourist rentals.
Cabarete and Sosúa lead tourist rental demand due to their established expat communities and excellent amenities, while Punta Cana benefits from proximity to the international airport and resort infrastructure.
What's the breakdown between condos, villas, and land investments?
Condominiums dominate sales activity and offer the highest liquidity in prime tourist markets like Punta Cana, Bávaro, Sosúa, and Cabarete, making them ideal for buy-to-rent and Airbnb strategies.
Villas are popular in the North Coast and Las Terrenas, requiring higher budgets starting at $250,000+ but offering strong rental potential and resale appreciation. These properties appeal to affluent tourists and long-term expat residents.
Land investments are best suited for medium to long-term capital appreciation, particularly near future infrastructure projects. Raw land offers the highest potential returns but requires more development expertise and longer holding periods.
Pre-construction condos in Cabarete and Punta Cana currently lead for rental returns and appreciation potential, with developers offering attractive payment plans and guaranteed rental programs.
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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.
Which regions are best for different investment strategies?
For living permanently, Las Terrenas offers the best expat community and infrastructure, while Cabarete provides an active lifestyle with excellent restaurants and beaches.
Santo Domingo appeals to those preferring urban amenities, cultural attractions, and business opportunities. The capital offers the most comprehensive healthcare, education, and professional services.
For rental income, Punta Cana, Bávaro, Sosúa, and Cabarete dominate due to high tourist visitor rates and established short-term rental markets. These areas benefit from international airport access and resort infrastructure.
For short-term resale appreciation, Punta Cana, Cap Cana, Las Terrenas, and Cabarete offer the fastest price growth and highest liquidity. These markets have proven track records for quick property turnover.
Puerto Plata suits buyers seeking value and longer-term appreciation, while rural mountain areas appeal to those wanting privacy and lower costs but with limited rental or resale potential.
What are the best options for budgets under $150,000?
Condominiums in Bávaro, Punta Cana, and Las Terrenas offer the best value for budgets under $150,000, providing access to tourist rental markets and established infrastructure.
These areas feature numerous new developments with amenities like pools, security, and management services that support rental operations. Pre-construction options often provide better pricing and payment terms.
Bávaro condos typically start around $120,000-140,000 for one-bedroom units near the beach, while Punta Cana offers similar pricing with airport proximity advantages.
Las Terrenas provides a more boutique market with condos in the $130,000-150,000 range that appeal to European tourists and long-term renters seeking a quieter environment.
Studio and one-bedroom units in these markets consistently generate strong rental yields and have proven resale markets, making them ideal entry-level investments.
What opportunities exist for budgets above $500,000?
Luxury villas and premium oceanfront condominiums dominate the $500,000+ market, concentrated in Cap Cana, select Las Terrenas neighborhoods, and exclusive Cabarete developments.
Cap Cana offers ultra-luxury gated communities with golf courses, marinas, and private beaches, with properties ranging from $750,000 to several million dollars. These developments target high-net-worth individuals and provide exceptional amenities.
Las Terrenas features boutique villa developments and luxury condos with European aesthetics, typically priced between $500,000-1,200,000. The area attracts affluent European buyers seeking sophisticated tropical lifestyles.
Cabarete's premium market includes luxury beachfront villas and exclusive condo developments starting around $600,000, popular with kitesurfing enthusiasts and adventure tourism clientele.
These high-end properties often include professional management services, private pools, and direct beach access, generating premium rental rates from affluent tourists and corporate clients.
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How liquid is the Dominican Republic property market?
Dominican Republic property resale typically takes 3-12 months depending on location and property type, with prime tourist markets showing the fastest turnover.
Well-priced properties in established markets like Punta Cana, Cabarete, and Las Terrenas often sell near asking price with discounts of less than 5-10% for motivated sales. These areas benefit from active buyer pools and established real estate networks.
Rural, overpriced, or less desirable properties require longer marketing periods and may need deeper discounts of 10-15% to attract buyers. Properties lacking proper documentation or in remote locations face the greatest liquidity challenges.
The most liquid properties include beachfront condos, tourist rentals with proven income history, and properties in gated communities with established management. These typically sell within 3-6 months at market prices.
Foreign buyer interest provides strong support for liquidity in prime markets, while local buyer activity focuses mainly on Santo Domingo and secondary urban centers.
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 property market continues to deliver exceptional returns for investors willing to focus on the right locations and property types.
With double-digit price growth, world-class rental yields, and strong tourism fundamentals, the market offers compelling opportunities across all budget ranges for both investors and residents.
Sources
- Global Property Guide - Dominican Republic Price History
- International Investment - Dominican Republic Real Estate Market
- Properstar - Dominican Republic House Prices
- The LatinVestor - Dominican Price Forecasts
- Blue Sail Realty - Dominican Republic Real Estate 2025
- Global Property Guide - Rental Yields
- Real Estate Las Terrenas - Rental Potential Evaluation
- Own Dominican - Best Places to Buy Property 2025