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Santo Domingo's property market is showing strong growth momentum heading into 2026, with apartment prices already reaching DOP 12,683 per square foot and construction costs rising 38% since 2020.
Property prices in Santo Domingo are likely to continue increasing in 2026, driven by steady population growth of 1.7% annually, rising foreign investment accounting for up to 40% of luxury transactions, and government infrastructure investments totaling 3.12% of GDP focused on urban development.
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As of September 2025, Santo Domingo's residential property market shows clear upward pressure with apartments averaging DOP 12,683 per square foot and houses at DOP 6,736 per square foot.
With population growth adding 60,000-65,000 new residents annually and foreign buyers representing 40% of luxury purchases, demand continues to outpace supply in this Caribbean capital.
| Market Factor | Current Status (2025) | 2026 Outlook |
|---|---|---|
| Apartment Prices | DOP 12,683/sq ft (US$2,202/sq m) | Expected 6-8% increase |
| House Prices | DOP 6,736/sq ft (US$1,169/sq m) | Expected 4-6% increase |
| Population Growth | 1.7% annually (3.65M residents) | +60K-65K new residents |
| Foreign Investment | 40% of luxury transactions | Continued strong demand |
| Construction Costs | +38% since 2020 | Continued upward pressure |
| Rental Yields (Central) | 6-8% | Rising with urban demand |
| Infrastructure Investment | 3.12% of GDP | Major projects completing |
What's the current average price per square meter for apartments and houses in Santo Domingo in 2025?
As of September 2025, apartments in Santo Domingo average DOP 12,683 per square foot, which translates to approximately US$2,202 per square meter.
Houses in Santo Domingo are currently priced at DOP 6,736 per square foot, equivalent to around US$1,169 per square meter. This represents a significant price difference between apartments and houses, with apartments commanding nearly double the price per square foot.
Premium neighborhoods like Piantini and Naco command higher prices than these averages, particularly for luxury properties. The price gap between apartments and houses reflects the urban density preferences and land scarcity in central Santo Domingo areas.
These prices represent current market rates as property values have been steadily climbing due to increased demand from both local and international buyers.
How much did property prices in Santo Domingo increase each year over the past five years, in percentage terms?
Santo Domingo apartment prices increased by 7% in 2024, following a consistent pattern of 6-10% annual growth in high-demand areas since the pandemic recovery began.
House prices in Santo Domingo grew by 5% in 2024, maintaining a steady growth trajectory of 4-6% annually since 2020. This represents more moderate but consistent appreciation compared to the apartment segment.
The apartment market has consistently outperformed house price growth, driven by urban density preferences and limited land availability in desirable central locations. High-demand neighborhoods have seen the upper end of these growth ranges.
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Post-pandemic recovery has been a key driver of this sustained growth, with international buyer interest significantly contributing to price appreciation.
What's the average household income in Santo Domingo, and how fast is it growing each year?
The average household income in Santo Domingo is reported at DOP 22,123 per month, which equals approximately US$379 monthly as of 2025.
For middle-class and higher-income households, the living wage benchmark sits at DOP 38,451 per month (US$648), which better represents the purchasing power of property buyers in the market.
Household income growth in Santo Domingo has averaged 4-6% annually in recent years, closely tracking the Dominican Republic's GDP growth patterns. This wage growth rate has been relatively consistent, supporting continued property demand.
The income growth rate of 4-6% annually provides some purchasing power support for property buyers, though it hasn't kept pace with the 6-10% annual property price increases in many segments.
This income-to-property price gap explains why cash purchases remain common and why financing terms are increasingly important for market accessibility.
How many new housing units are expected to be built in Santo Domingo in 2025 and 2026?
Santo Domingo faces a significant housing shortage with the Dominican Republic experiencing a deficit of approximately 2.1 million housing units nationwide.
New housing completions in Santo Domingo are expected to remain limited in 2025 due to land scarcity in desirable areas, with development primarily focused on multifamily projects rather than single-family homes.
The 2026 forecast indicates further moderation in new construction volume, as both government and private sector developers are shifting focus toward higher-density builds and urban regeneration projects rather than expanding the housing supply significantly.
This constrained supply situation continues to support upward pressure on property prices, as demand from population growth and foreign investment exceeds the rate of new unit delivery.
Urban regeneration and higher-density development represent the primary strategy to address housing needs within the limited available land in Santo Domingo.
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What's the current population growth rate in Santo Domingo, and how many new residents are projected by 2026?
Santo Domingo's metropolitan area currently has a population of 3,648,000 residents as of 2025, with a steady growth rate of 1.7% per year.
The 2026 projection indicates Santo Domingo will add between 60,000 and 65,000 new residents, bringing the total metropolitan population to approximately 3.71 million by the end of 2026.
This 1.7% annual population growth rate represents consistent demographic expansion that directly drives housing demand in the capital city. The steady influx of new residents creates ongoing pressure on the already limited housing supply.
The population growth combines internal migration from other parts of the Dominican Republic with international immigration, both contributing to sustained property demand.
With new housing construction not keeping pace with population growth, this demographic trend strongly supports continued property value appreciation.
How many mortgage loans were issued in Santo Domingo last year, and what was the average interest rate?
While specific loan volume data for Santo Domingo in 2024 is not publicly available, market reports indicate robust mortgage demand throughout the year.
Average mortgage interest rates in Santo Domingo range from 6.7% to 8.0% for 15-30 year fixed-rate loans as of 2025. Dominican banks typically offer higher rates for foreign buyers compared to local residents.
The mortgage market shows a growing trend toward both traditional bank financing and owner financing arrangements, particularly in higher-end and expat-focused property segments.
Market reports cite strong demand for financing options, with both local buyers and international purchasers increasingly utilizing mortgage products rather than all-cash transactions.
Interest rates in this 6.7-8.0% range reflect the Dominican Republic's monetary policy and risk assessments, with rates varying based on borrower profiles and property types.
What is the current rental yield in central and suburban Santo Domingo, and how has it changed over the last three years?
Central Santo Domingo rental yields currently range from 6-8% in 2025, benefiting from increased demand for city-center living and short-term rental opportunities.
Suburban Santo Domingo rental yields have declined to 5-6% by 2025, as demand increasingly concentrates in urban core areas rather than outlying neighborhoods.
Over the past three years, central area rental yields have been rising modestly as city living gains popularity and tourism recovery supports short-term rental income potential.
Suburban yields have experienced a slight decline during the same period, reflecting the shift in renter preferences toward central locations with better amenities and transportation access.
This yield differential between central and suburban areas reflects the broader urbanization trend and supports higher property values in core Santo Domingo neighborhoods.
How many foreign buyers purchased properties in Santo Domingo last year, and from which countries do they mostly come?
Foreign buyers accounted for up to 40% of luxury property transactions in Santo Domingo during 2024, representing a significant portion of the high-end market segment.
The primary source countries for foreign property buyers include the United States, Canada, Spain, Venezuela, Argentina, and Colombia, reflecting both North American investment interest and regional Latin American migration patterns.
United States and Canadian buyers represent the largest North American contingent, often seeking investment properties or retirement homes in the Caribbean region.
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Venezuelan, Argentine, and Colombian buyers often represent regional migration and investment flows, while Spanish buyers reflect cultural and linguistic connections to the Dominican Republic.
This strong foreign buyer presence, particularly at 40% of luxury transactions, significantly influences market dynamics and supports premium property valuations.
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 percentage of properties are sold in cash versus financed through banks in Santo Domingo?
Cash purchases remain prevalent in Santo Domingo's property market, particularly for small and mid-segment properties where buyers prefer to avoid financing complications.
Financed sales through banks or owner financing arrangements are growing, especially in higher-end properties and transactions involving expat buyers who may have different financing preferences.
Owner-financed deals can complete 2-3 times faster than traditional cash transactions, making them attractive for both buyers and sellers in certain market segments.
The exact cash-to-financing ratio varies by property segment, with luxury properties seeing more financing activity while lower-priced segments maintain higher cash transaction rates.
The growing availability of financing options, including creative owner financing structures, is expanding market accessibility for both local and international buyers.
What's the inflation rate in the Dominican Republic, and how has it affected construction costs per square meter over the last three years?
Construction costs in the Dominican Republic have increased by 38% from 2020 to 2024, representing a significant impact on new property development and renovation costs.
This dramatic 38% increase in construction costs has been driven by rising prices for cement, building materials, and labor throughout the three-year period following the pandemic.
The construction cost inflation directly impacts new property pricing, as developers must account for these higher input costs when setting sales prices for new projects.
Material cost increases affect both new construction and renovation projects, contributing to the overall upward pressure on property values across Santo Domingo.
These elevated construction costs help explain why existing properties have maintained strong value appreciation, as replacement costs continue rising above current property prices.
How many square meters of commercial real estate were added in Santo Domingo last year, and what's projected for 2026?
While specific square meter data for 2024 commercial additions is limited, Santo Domingo experienced sustained growth in Class A office space, retail developments, and tourism-related hospitality projects.
The commercial real estate sector is forecast to grow at 3.9-4% annually through 2029, indicating steady but moderate expansion in the Santo Domingo market.
The 2026 outlook projects continued moderate expansion focused on higher-grade and mixed-use projects rather than massive square footage additions.
Development activity concentrates on quality over quantity, with emphasis on modern office buildings, upscale retail spaces, and integrated mixed-use developments.
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This commercial development supports residential property values by enhancing neighborhood amenities and employment opportunities in key Santo Domingo districts.
What is the government's planned investment in infrastructure projects in Santo Domingo between 2025 and 2026, and how close are they to the main residential areas?
The Dominican Republic government targets infrastructure investment at 3.12% of GDP for Sustainable Development Goals, with significant focus on transportation and energy improvements.
Major infrastructure projects include the US$90 million Colonial Zone Revitalization project, which directly impacts central residential areas and aims to boost livability and property values.
Infrastructure investments concentrate on transport improvements and energy systems that directly benefit residential neighborhoods throughout Santo Domingo's urban core.
These infrastructure projects are strategically located within or adjacent to major residential areas, designed to enhance livability and support property value appreciation.
The Colonial Zone Revitalization and other projects will improve accessibility, amenities, and overall neighborhood quality for existing residential communities.
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.
Santo Domingo's property market shows clear upward momentum for 2026, with multiple factors supporting continued price appreciation including steady population growth, strong foreign investment, and constrained housing supply.
The combination of rising construction costs, infrastructure investments, and demographic pressure creates a compelling case for property value increases in the Dominican Republic's capital city.
Sources
- Properstar - Santo Domingo House Prices
- Global Property Guide - Dominican Republic Price History
- The Latinvestor - Santo Domingo Price Forecasts
- The Latinvestor - Dominican Republic Price Forecasts
- Dominican Today - Family Income Report
- Global Living Wage - Santo Domingo Benchmarks
- MacroTrends - Santo Domingo Population
- DR Properties - Mortgage Financing