Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
What will happen in Santiago de los Caballeros’ real estate market? Will prices go up or down? Is this city still a hotspot for foreign investors? How is the Dominican Republic’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Santiago de los Caballeros, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Foreign investors will target short-term rentals as tourism increases in Santiago de los Caballeros
Foreign investors are eyeing short-term rental properties in Santiago de los Caballeros, thanks to a tourism boom.
In 2024, the Dominican Republic welcomed over 5 million tourists in just the first five months, showing a 12% jump from 2023 and a 49% increase from 2022. This surge underscores the region's growing allure as a travel hotspot.
Adding to the appeal, Santiago de los Caballeros has become more accessible with an increase in international flights. The local airport now offers non-stop flights to major cities like Madrid, Miami, and New York City. Airlines such as American Airlines and JetBlue ensure a steady stream of visitors year-round.
Short-term rental platforms like Airbnb are thriving here, with 2.7K properties available. These rentals are favored for their prime locations, cleanliness, and amenities, often starting at budget-friendly prices. Some properties even fetch over $1,000 per night, highlighting their profitability.
Occupancy rates for these rentals are high, reflecting the strong demand. This trend is a clear indicator of the lucrative opportunities for investors looking to capitalize on the tourism wave.
Sources: Aviacionline, Flight Connections, Airbnb
2) Property prices in Santiago de los Caballeros will keep rising because land is scarce
Santiago de los Caballeros is seeing a boom in its population, with more people flocking to the city every year.
By 2022, the city had around 771,748 residents, most of whom live in urban areas. This surge in population is pushing up the demand for housing, which in turn is driving property prices higher.
The city spans an urban area of 89.88 km², but with 63.45 km² already developed, there's not much room left for new construction. This scarcity of land is a big reason why property prices are climbing.
Looking at the past, property prices in Santiago de los Caballeros have been on a steady rise. For example, by January 2025, the median price for an apartment hit DOP 95,855/m². Local real estate reports back up this trend, showing prices are only going up.
With limited land available and a growing population, it's no surprise that property prices are expected to keep rising. The city's charm and opportunities are drawing more people in, but the space to accommodate them is shrinking.
Sources: Properstar, City Population, FazWaz
We have made this infographic to give you a quick and clear snapshot of the property market in the Dominican Republic. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Foreign buyer interest will grow as new international flights make the city more accessible
Santiago de los Caballeros is now easier to reach for international travelers.
With its airport offering non-stop flights to 12 destinations in 6 countries, Santiago is becoming a hub for major airlines like Air Europa, American Airlines, Delta, JetBlue, and United Airlines. These airlines provide year-round service to popular cities such as Madrid, Miami, New York City, and Orlando, making it a breeze for travelers to visit.
The increase in flight options has led to a boom in foreign tourism to the Dominican Republic. In just the first five months of 2024, the country welcomed over 5 million visitors, which is a 12% jump from the same period in 2023. This surge shows a growing international interest in the region, making it a hot spot for tourists.
Foreign real estate investments in the Dominican Republic, especially in the tourism sector, are on the rise. From 2022 to 2023, these investments grew from US$1,050 million to US$1,182.1 million. This trend indicates that as Santiago becomes more accessible, it will likely attract more foreign buyers looking for Caribbean properties.
For those considering buying property in Santiago, the city's newfound accessibility and the uptick in tourism make it an attractive option. The combination of increased flight connectivity and rising tourism suggests a promising future for real estate investments in the area.
With Santiago de los Caballeros becoming a more accessible destination, the city is poised to see a rise in foreign buyers. The new international flights are making it easier for people from around the world to explore and invest in this vibrant city.
Sources: Flight Connections, Aviacionline, Dominican Today
4) Tech-savvy buyers will be drawn to new developments featuring standard smart home technology
Smart home technology is quickly becoming a must-have in new property developments, especially for tech-savvy buyers.
In recent years, particularly in 2023 and 2024, there has been a noticeable increase in the adoption of smart home devices. By 2025, it's anticipated that 35% of homes in the Dominican Republic will be equipped with these technologies. This isn't just a local trend; in the U.S., about 60% of consumers are expected to embrace smart home technology by the same year.
People are increasingly seeking homes with integrated technology. A significant 70% of home buyers are on the lookout for smart homes, driven by the perks of convenience, time savings, and enhanced security. Renters are also on board, with 82% wanting at least one smart device in their living spaces. This trend is particularly strong among younger buyers, with a whopping 75% of smart home consumers under 55.
The smart home market has been on a steady rise since 2020, with global consumer spending projected to hit $170 billion by 2025. This growth is fueled by government incentives and policies that promote energy-efficient and smart technologies in housing. The rollout of 5G technology is also making it easier for homes to adopt these systems.
In the Dominican Republic, the push for smart homes is not just about luxury but also about practicality. With the government's focus on improving internet infrastructure, more homes are becoming capable of supporting smart systems. This makes the country an attractive option for those looking to invest in tech-forward properties.
As smart home technology becomes more accessible and affordable, it's expected to become a standard feature in new developments, drawing in buyers who value modern conveniences and efficiency.
Sources: Exploding Topics, Crestron
5) Interest in luxury villas will grow as wealthy buyers look for privacy and exclusivity
Luxury villas are gaining popularity among affluent buyers seeking privacy and exclusivity.
In Santiago de los Caballeros, the demand for luxury real estate is on the rise, with the median sales price for villas hitting around RD$21,400,000. This trend highlights a growing interest in high-end properties. The Dominican Republic's economic growth has been impressive, with per capita income reaching 32% of the United States' in 2022. This boost in wealth is attracting high-net-worth individuals to invest in luxury villas.
The shift towards hybrid workspaces is another factor driving this trend. Affluent buyers now have the flexibility to choose properties in more secluded areas, making luxury villas even more appealing. In Santiago de los Caballeros, there are currently 27 villas for sale, indicating a vibrant market for luxury properties.
New developments are springing up to meet this demand. Projects like Residencial Roble, Las Carmelitas, and La Castellana Residences are specifically designed to offer exclusive living spaces. These developments cater to those who value privacy and a high standard of living.
As the Dominican Republic continues to grow economically, the luxury real estate market is expected to expand further. The combination of increased wealth and the desire for exclusive living spaces is a powerful driver for this trend. With more people seeking privacy and luxury, the demand for high-end villas is likely to keep rising.
Get to know the market before you buy a property in Santiago de los Caballeros
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Foreign buyer interest will drop in the city due to more complex purchase regulations
Santiago de los Caballeros is becoming a tougher market for foreign property buyers due to new regulations.
Foreign buyers now face the challenge of registering with the Dominican Tax Authority, which adds a layer of complexity to the buying process. This requirement means understanding and adhering to specific tax rules, which can be a bit overwhelming if you're not familiar with the local system.
On top of that, the legal process for buying property in the Dominican Republic has become more complicated. Buyers need to handle detailed documentation and registration at the Title Registry Office. This can be quite daunting, especially if you're not used to the local laws and procedures.
Another hurdle is the rising costs associated with compliance. For instance, obtaining a Certificate of Title is not just a bureaucratic step but also a financial burden. These added expenses can make the whole process feel like a heavy lift.
There have also been reports of delays in property transactions. The need to register with the tax authority and secure a Certificate of Title can slow down the process, which might put off foreign buyers looking for a quick and easy investment.
These changes are likely to lead to a decline in foreign buyers as the new regulations make purchases more complex and less appealing.
Source: The Agency DR
7) Property prices in Santiago de los Caballeros will drop moderately as new developments temporarily exceed demand
In 2023 and 2024, Santiago de los Caballeros experienced a boom in new housing developments.
According to FazWaz.com.do, this surge included over 30 new houses for sale in the city. This rapid construction pace suggests that there might be more homes available than buyers, at least for now. Imagine walking through neighborhoods with shiny new homes, yet some remain eerily quiet, waiting for owners.
There's also talk of unsold properties, like a 112 SqM apartment lingering on the market since 2022. This scenario hints at a buildup of unsold homes, which can lead to price drops as sellers try to attract more interest. Picture sellers getting anxious, offering deals to entice potential buyers.
Meanwhile, the population growth in Santiago de los Caballeros has been steady, with only a 1.29% increase in 2025 compared to 2024. This slower growth means there might not be enough new residents to fill all these new homes. It's like having a party with more seats than guests.
When the number of new homes outpaces the number of new buyers, it can lead to a temporary decline in property prices. This is a classic case of supply outstripping demand, where sellers might need to lower prices to close deals.
For those considering buying property, this could be an opportunity to snag a deal. With more homes than buyers, the market might favor buyers for a while, offering a chance to negotiate better terms.
Sources: FazWaz.com.do, FazWaz.com.do, MacroTrends
8) Property prices in Santiago de los Caballeros will stabilize as the market adapts to new economic conditions
Santiago de los Caballeros is buzzing with real estate activity, making it an exciting time for potential buyers.
In the heart of Santiago, property sales have surged, reflecting a strong demand that bodes well for market stability. For instance, FazWaz.com.do lists 130 properties for sale, offering a range of prices and amenities to suit various buyers.
The construction scene is booming, with the number of companies almost doubling from 329 to 654 between 2016 and 2021. This growth has pushed the sector's value to 305,804 billion pesos, making up 11.1% of the industry's GDP. Such a vibrant construction market means more housing options, helping to keep the market balanced.
On the economic front, Santiago's urban area has expanded by 42.72 square kilometers, signaling economic growth that supports stable property prices. This expansion creates a favorable environment for both buyers and sellers.
Adding to the mix, Santiago is home to 0.6 million foreigners, indicating a steady stream of potential buyers. This influx helps maintain demand, contributing to the stabilization of property prices.
With these dynamics at play, Santiago's real estate market is poised for a period of stability as it adjusts to new economic conditions.
Sources: FazWaz, Dominican Today
We made this infographic to show you how property prices in the Dominican Republic compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Virtual reality tours will transform property viewings, simplifying the process for remote buyers
Virtual reality tours are changing how people buy property, especially if they're not nearby.
Back in 2023, the real estate world was buzzing about VR, with its market value expected to hit $2.6 billion by 2025. This shows how VR is becoming a must-have tool, letting buyers check out homes from anywhere. Imagine sitting on your couch and exploring a house miles away, feeling like you're actually there. That's the magic of VR.
Buyers love the comfort and ease of VR tours. A while ago, 67% of home buyers wanted virtual tours when browsing listings, and more than half wouldn't even look at a property without one. This trend is growing because VR gives a more real and engaging experience than just photos or videos. It's like walking through the house without leaving your home.
Think about the time and hassle saved with VR tours. You can check out several properties without stepping outside, which speeds up decisions and opens up the market to more people. Whether you're in a different city or country, VR makes it easy to be part of the property market.
The real estate industry is going digital, with VR and AI leading the way in marketing and sales. Real estate firms are teaming up with VR companies to make property viewing better and more accessible. This partnership is a game-changer for remote buyers, offering a seamless experience.
Sources: PhotoUp, EZ Real Estate Tools, Walkly
10) Property values will rise in areas once at risk due to flood prevention efforts
Flood prevention initiatives can significantly boost property values in areas that were previously at risk of flooding.
Take Japan, for instance. In the Komatsugawa District, a high-standard embankment project led to a 34% increase in land value over eight years. This was much higher than the 17% increase in areas not protected by the embankment, showing how effective these measures can be.
In Boulder County, Colorado, property prices initially dipped after a major flood, but they bounced back within a few years. This rebound highlights that while there might be an initial drop, properties in flood-safe areas can appreciate over time. Buyers generally prefer these areas due to the reduced risk of damage and a greater sense of security.
Government investments in flood prevention, like those in California, not only reduce the risk of flooding but also lower insurance premiums. This makes properties more attractive to buyers, further boosting their value. Additionally, flood prevention projects often lead to increased commercial development, transforming neighborhoods into more appealing living environments.
In Japan, these efforts have turned neighborhoods into more attractive places to live, thanks to the added security and improved infrastructure. This kind of development can make a big difference in how a community grows and prospers.
So, if you're considering buying property, looking into areas with strong flood prevention measures could be a smart move. Not only do you get peace of mind, but you might also see a nice boost in property value over time.
Sources: Case Studies in Integrated Urban Flood Risk Management in Japan, The 2024-25 Budget: Flood Management Proposals, Bipartisan Infrastructure Law | Home - USDA
11) Price growth in Bella Vista will slow down because of too many new apartments
Bella Vista is seeing a boom in new apartment construction, with a noticeable uptick in permits issued for 2023 and 2024.
This construction frenzy means more apartments are popping up than there are renters to fill them, leading to rising vacancy rates in these new complexes.
In areas with such high building activity, it's common for landlords to lower prices to attract tenants, which can slow down price growth.
Real estate agencies are also pointing out a surplus of available units, a clear sign of oversupply in the market.
When too many apartments are up for grabs, sellers often compete fiercely to attract buyers, which can drive prices down.
All these factors suggest that Bella Vista's property market might cool off as the oversupply issue persists.
Sources: CRE Daily
Buying real estate in Santiago de los Caballeros can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Property values in Las Colinas will drop as crime rates rise
Las Colinas in Santiago de los Caballeros is grappling with rising crime rates, which is a growing concern for potential property buyers.
In the city, the crime rate is alarmingly high at 73.37 out of 100, making safety a significant issue. Residents are particularly worried about being mugged or robbed, while home break-ins and thefts are also a concern, albeit to a lesser extent.
Local news often highlights the increase in theft and violence, with property crimes like vandalism and theft being notably high. Violent crimes, including assault and armed robbery, add to the anxiety, painting a picture of a neighborhood struggling with safety issues.
Real estate experts note that high crime rates deter potential buyers, leading to a drop in property values. Agents find it challenging to sell homes in such areas, reinforcing the idea that safety concerns are impacting the market.
When you look at nearby areas with lower crime rates, property values there are stable or even rising. This stark difference underscores how crucial safety is in determining property values in Las Colinas.
13) Property prices in La Zurza will rise as new cultural attractions attract more visitors
The government is investing 250 million pesos to boost Santiago de los Caballeros as a tourist hotspot.
Part of this hefty investment is earmarked for sprucing up the Historic Center, including the charming area of La Zurza. This kind of financial backing usually sparks interest and development, making the area more appealing to visitors and potential property buyers.
Santiago's top cultural spots, like the Monumento a los Héroes de la Restauración and Centro León, are pulling in more tourists. As these places get busier, La Zurza is seeing a spillover effect, drawing in tourists eager to dive deeper into local culture.
The Minister of Tourism is showcasing Santiago at international fairs, boosting its profile. This increased visibility is likely to attract more visitors, raising the demand for properties in La Zurza as people discover its cultural gems.
Historically, areas with new cultural attractions often see property prices rise. While specific data for La Zurza isn't available, similar trends have been noted in other parts of Santiago, where modern homes have appreciated significantly.
With these developments, La Zurza is poised for a property price boost as new cultural attractions draw more visitors.
Sources: FazWaz, DR Motorides, Dominican Today
14) Rents will rise in areas attracting young renters with new cultural and entertainment venues
Rents are climbing in areas with new cultural and entertainment venues, especially in Santiago de los Caballeros.
Young renters are flocking to places like Santiago, drawn by its vibrant cultural scene and modern attractions. This city is becoming a hotspot for young professionals, particularly those aged 20 to 34, who are in their prime renting years and love urban living.
Expect rents to rise in 2025 and 2026 as new apartment supplies get absorbed, according to CoStar Group. This will reverse the lower prices seen recently due to the post-COVID supply glut.
Events like the ADN BACHATA WORLD FESTIVAL 2025 and the Cigar Family Celebration 2025 are not just fun; they boost the local economy and housing demand. These events attract both tourists and locals, making the area even more appealing.
Investing in cultural venues often leads to property value appreciation. This trend is well-documented and suggests that areas with such investments will see a rise in rents.
In Santiago, the mix of rich cultural heritage and modern attractions is a magnet for young renters, driving up demand and, consequently, rents.
Sources: Rental Housing Journal, Buildium, Eventbrite
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.