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Considering buying real estate in Puerto Plata? You're not alone!
Many people are captivated by Puerto Plata's Caribbean allure and dream of owning a beachfront villa or a modern condo with ocean views there.
Would it be a profitable investment, though? Are property prices increasing in Puerto Plata? How much does it cost? Is it better to invest in the city center or Playa Dorada? What are the taxes? Where can you get a rental yield above 7%?
We have the answers.
At TheLatinvestor, we've thoroughly explored this market. Actually, we have condensed all our findings in a pack. Get it now.
In this article, we're happy to share useful information with you.
How is the real estate market in Puerto Plata?
Is the property market showing growth or decline? Let's analyze the latest data and statistics.
Types of properties
In Puerto Plata, you can find a variety of properties for sale.
The available properties range from beachfront condos with stunning ocean views and cozy villas nestled in lush tropical surroundings, to charming townhouses in quaint neighborhoods, and spacious homes with private gardens.
Whether you're seeking a relaxing retreat or an investment opportunity, Puerto Plata offers a range of real estate options to suit different preferences and budgets.
Buying or renting?
(If you're keeping it for yourself and not renting it)
Whether you've already made Puerto Plata your home or are contemplating it for the future, you might be considering whether to buy or rent a property in this Dominican coastal city.
Usually, buying is better than renting in Puerto Plata due to the long-term investment opportunity and potential appreciation of property values.
Still, if flexibility is key, consider going for renting.
Property prices in Puerto Plata
On average, according to the updated data from Central Bank of the Dominican Republic, purchasing a property in Puerto Plata should cost you around $2,200 per square meter.
Obviously, there are some big differences. The value of a square meter for a beachfront property in Puerto Plata might differ from a condo in Cofresi. You'll get a more detailed in our pack for buying property in Puerto Plata and in the Dominican Republic.
To put things in perspective, it means that, instead of buying an apartment in New York, you can get around 6 properties in Puerto Plata.
However, housing prices in Puerto Plata are slightly higher (5%) than in Punta Cana.
The most expensive neighbourhoods in Puerto Plata are probably Sosua and Cabarete, while the cheapest are likely to be Imbert and Montellano.
First and foremost, we have to acknowledge that the Dominican Republic offers, today, a stable political and economic climate. The last Fragile State Index that has been reported for this place is 62.8.
Don't overlook this while weighing the pros and cons of buying a property in Puerto Plata.
If we look at the IMF’s forecasts, we can see that the Dominican Republic's economy is expected to soar by 21.7% in the coming 5 years, resulting in an average GDP growth rate of 4.3%.
If you intend to invest in real estate in Puerto Plata it's a good thing because when the economy grows, people often experience an increase in wealth, it typically translates to a surge in housing costs.
Also, in the Dominican Republic, the average GDP per capita has changed by 10.6% over the last 5 years. It's far beyond the global average.
This trend can lead to a rise of property prices in Puerto Plata over the course of 2024 and also later on.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in the Dominican Republic right now.
Buying property in Puerto Plata
Buying real estate in Puerto Plata can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Puerto Plata and in the Dominican Republic.
In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.
Now, we're giving you a more straightforward version to help you grasp the information more easily.
This is the step-by-step process to purchase a property in Puerto Plata:
- Research the Puerto Plata real estate market and available properties, considering factors like location, amenities, and legal requirements.
- Hire a local real estate agent familiar with Puerto Plata's regulations and property market.
- View potential properties and narrow down options based on your preferences and budget.
- Conduct a thorough inspection of the chosen property, looking for any potential issues or damages.
- Verify the property's legal status and ownership by checking the "Certificado de Titulo" (Title Certificate) at the local Property Registry.
- Negotiate the purchase price and terms with the seller, considering property taxes and fees.
- Sign a purchase agreement (Contrato de Compraventa) and provide a deposit (typically 10% of the property price).
- Hire a lawyer specialized in real estate transactions in Puerto Plata to handle the legal paperwork, including the "Contrato de Compraventa."
- Obtain financing from a local bank or arrange for payment if paying in cash.
- Complete the necessary paperwork and obtain the title transfer (Escritura de Traspaso) signed before a Notary Public.
- Pay the required taxes and fees, including the 3% transfer tax (Impuesto de Transferencia de Bienes Inmuebles) and notary fees.
- Finalize the transaction by registering the title deed at the Property Registry and take possession of the property.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in the Dominican Republic.
Make a profitable investment in Puerto Plata
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Where to find a property
If you're searching for properties in Puerto Plata, take a look at these websites:
- Point 2 - A real estate marketplace offering homes, apartments, and commercial properties for sale and rent in the Dominican Republic and other countries.
- Select Caribbean Properties - With 22 years of experience on the North Coast of the Dominican Republic, Select Caribbean Properties is an independent realtor.
- Dominican Realty Group - A specialized real estate agency in the Dominican Republic that focuses on apartments, villas, lots, farms, and building proposals.
- 7th Heaven Properties - Offering an extensive array of real estate listings in the Dominican Republic, including both residential and commercial properties.
- Coldwell Banker Prime Realty - Providing a comprehensive selection of condos, homes, and luxury properties, supported by the expertise of the Coldwell Banker brand.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in the Dominican Republic.
Which properties for which budget?
As mentioned before, the average price per sqm in Puerto Plata is $2,200. A one-bedroom property with an area of 60 square meters would cost around $132,000, and a two-bedroom property with an area of 85 square meters would be around $187,000.
However, the cost of properties will fluctuate depending on both their characteristics and their location.
Top neighborhoods in Puerto Plata typically come with higher price tags. If you're considering Playa Dorada, an apartment might cost around $250,000, but a condominium in Costambar could be priced at $230,000.
Certainly, certain areas are more affordable. You may find a property in San Marcos for $100,000, or a property in Sabaneta priced only at $80,000.
Find a more detailed price list in our full pack for buying property in the Dominican Republic.
Here are the main pitfalls specific to buying a property in Puerto Plata, Dominican Republic:
- Coastal regulations: Strict laws governing properties near the coast can limit construction and development options.
- Ownership disputes: Historical land disputes may resurface, leading to legal complications.
- Property taxes: Understanding and navigating the complex tax system is essential for foreign buyers.
- Infrastructure challenges: Some areas may lack consistent water supply or electricity, affecting property value.
- Cultural differences: Familiarize yourself with local customs and practices to avoid misunderstandings with sellers.
- Hurricane risks: Coastal properties are susceptible to hurricanes, necessitating comprehensive insurance coverage.
- Language barrier: Communication issues may arise with locals or legal representatives, necessitating translation assistance.
- Tourism impact: Properties heavily reliant on tourism may experience fluctuations in rental demand and income.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Dominican Republic Property Pack
Living in Puerto Plata
Living in Puerto Plata is an idyllic experience, with its beautiful beaches, lush mountains, and lively culture, making it an ideal place to purchase a property.
Cost of living
The cost of living in Puerto Plata is generally lower than in other parts of the Dominican Republic. Rent, food, and other basic necessities are much more affordable than in cities like Santo Domingo and Santiago.
Here are some examples to better understand the cost of living in Puerto Plata, Dominican Republic:
- Presidente beer (local Dominican beer): $2 for a 0.33L bottle at a beachside bar.
- Rent for a one-bedroom apartment in Costambar neighborhood: $600/month.
- La Bandera (Dominican national dish) for two at a local eatery: $30.
- 1.5-liter bottle of Brugal rum: $10 at a supermarket.
- Electricity bill for an 85m² apartment using Edenorte: $80/month.
- Monthly membership at Gold's Gym in Puerto Plata: $45.
- Ticket to a movie at Sambil Puerto Plata: $7.
- Café Santo Domingo coffee (500g) at Supermercado Pola: $6.
We want to show information in a way that is easy to understand. So, we made a table that summarizes the different areas in Puerto Plata. For yields, prices and rents, check our property pack.
El Batey is a lively neighborhood known for its vibrant nightlife and proximity to popular beaches. It offers a wide range of restaurants, bars, and entertainment options.
Great nightlife, close to beaches, diverse dining options.
Noisy at night, crowded during peak tourist seasons.
Costambar is a tranquil residential area with a beautiful beach and a golf course. It's perfect for those seeking a peaceful atmosphere away from the hustle and bustle.
Serene environment, beach access, golfing opportunities.
Limited shopping and dining options, farther from the city center.
Los Charamicos is a traditional neighborhood known for its artisanal shops and local eateries. It offers an authentic Dominican experience and is close to the city's main attractions.
Cultural experience, local crafts, proximity to tourist spots.
Basic infrastructure, occasional noise, limited luxury amenities.
Playa Dorada is a resort area with beautiful beaches and all-inclusive hotels. It's a great choice for those seeking a luxurious and convenient vacation.
Luxury resorts, pristine beaches, various leisure activities.
Isolated from local culture, higher prices, crowded during peak seasons.
Playa Bergantin offers a more secluded and less crowded beach experience compared to other areas. It's a great spot for relaxation and water sports.
Quiet beach, water activities, scenic views.
Limited accommodation options, fewer dining choices.
Cofresi is known for its upscale resorts and beautiful ocean views. It's an excellent choice for a luxurious and serene escape.
Luxury resorts, stunning coastal scenery, peaceful ambiance.
Higher prices, limited budget accommodations.
Sosua is a popular expat community with beautiful beaches and a vibrant nightlife scene. It's a diverse area with various international dining options.
Expat-friendly, lively nightlife, international restaurants.
Can be crowded, traffic congestion.
Cabarete is a paradise for water sports enthusiasts, especially kiteboarding and windsurfing. It's a lively and laid-back town with a bohemian atmosphere.
Water sports opportunities, vibrant atmosphere, beachfront bars.
Noisy at night, limited shopping options.
Puerto Plata City Center
The city center of Puerto Plata offers a blend of history, culture, and modern amenities. It's home to historic landmarks, shops, and local markets.
Cultural attractions, shopping opportunities, diverse dining.
Traffic congestion, limited green spaces.
Life in Puerto Plata
The economy of Puerto Plata is largely driven by tourism, with the majority of the population employed in the hospitality industry. Many of the city's businesses also depend on the export of agricultural products, such as coffee and sugar cane.
What expats usually like the most in Puerto Plata is the beautiful beaches, resorts, and golf courses, as well as the vibrant nightlife and cultural activities.
Access to healthcare in Puerto Plata is generally adequate, with both public and private options available.
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Renting out in Puerto Plata
This section is for you if you're interested in purchasing property not for personal residence, but rather for the purpose of renting it out to generate rental income.
Tenant Profiles in Puerto Plata
If you decide to buy and rent out to long-term tenants, you should target retirees looking to enjoy the Caribbean lifestyle, as well as young professionals and families seeking a quieter atmosphere. Short-term rental tenants may be more interested in the resort towns and beaches that Puerto Plata has to offer.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Condo in Puerto Plata
Beachfront location, amenities
$800 - $1500
Villa in Puerto Plata
Private pool, scenic views
$1500 - $3000
Apartment in Puerto Plata
Working professionals, students
Proximity to amenities, transport
$500 - $1000
Studio in Puerto Plata
Solo travelers, budget-conscious
Affordable, convenient location
$300 - $600
Beachfront Property in Puerto Plata
Luxury travelers, honeymooners
Exclusive access to the beach
$1500 - $4000
Golf Community Home in Puerto Plata
Golf enthusiasts, retirees
Close to golf courses, amenities
$1200 - $2500
Resort Apartment in Puerto Plata
$1000 - $2200
Nowadays, Puerto Plata offers some opportunities in terms of rental yields. Actually, you can easily achieve 7 or 8% due to the relatively low cost of real estate in the area.
In Puerto Plata, rental yields are typically highest for properties located near popular tourist attractions, such as the Malecon boardwalk and the beaches of Sosua and Cabarete, as these areas tend to have high demand for rental accommodation. Properties located in gated communities and with access to amenities such as swimming pools also tend to have higher rental yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
You could also decide to rent short-term to vacationers looking for an affordable beach getaway or business travelers attending conferences or events in the area. Puerto Plata is also a popular destination for cruise ship passengers, making them a potential target for short-term rental.
If you decide to go with that option, look for properties in the Sosua and Cabarete areas, which are popular with tourists and offer a wide range of amenities and activities. Additionally, the Playa Dorada area is also a great spot to look for rental properties.
Currently, there are approximately 2,070 active Airbnb listings in Puerto Plata, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $90.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Puerto Plata can make around $1200 per month. Also, the average occupancy rate is estimated at 62%.
Is it worth buying real estate in Puerto Plata then?
Buying a property in Puerto Plata can be a smart move if you're seeking a long-term investment with potential for property value appreciation. The Dominican Republic's stable political and economic climate, coupled with forecasted GDP growth, suggests that real estate here could yield profitable returns.
Additionally, Puerto Plata's alluring beaches and vibrant culture make it an ideal location for a retirement or vacation home, allowing you to enjoy the Caribbean lifestyle. Moreover, if you plan to generate rental income, this coastal city offers opportunities for both long-term and short-term rentals. The relatively affordable real estate prices make it feasible to achieve rental yields of 7% or more, serving as a lucrative source of income.
With a variety of real estate options available to match different budgets and preferences, Puerto Plata is an attractive destination for property buyers looking to invest in paradise.
However, it's not all sunshine and beaches. Buying property in Puerto Plata can be risky if you lack reliable information or local expertise. The absence of up-to-date data and potential ownership disputes can lead to complications. Strict coastal regulations may limit your development plans, and infrastructure challenges in certain areas could affect your property's value and your quality of life.
Moreover, cultural differences and language barriers may pose hurdles, requiring translation assistance and cultural sensitivity. Additionally, if your property heavily relies on tourism, you might face income fluctuations based on tourism trends.
Therefore, while Puerto Plata offers promising real estate opportunities, it's crucial to conduct thorough research, seek local guidance, and carefully assess the specific circumstances before diving into property investment in this Caribbean gem.
Make sure you understand the real estate market in Puerto Plata
Don't rush into buying the wrong property in the Dominican Republic. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.