Is it worth it buying property in Santo Domingo in 2025?

Authored by the expert who managed and guided the team behind the The Dominican Republic Property Pack

Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack

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THELATINVESTOR

A team specialized in real estate investing in Latin America countries (Dominican Republic, Mexico, Colombia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Dominican Republic. If you'd like to learn more about us, you can check our presentation page.

What kind of properties can you actually buy in Santo Domingo in 2025—are we talking apartments, houses, new developments, or fixer-uppers?

Santo Domingo's property market offers a diverse range of options for buyers in 2025, with apartments being the most popular choice among both locals and foreigners.

Modern apartments dominate the market, particularly in upscale neighborhoods like Piantini and Naco, where new high-rise developments feature luxury amenities including gyms, pools, and 24-hour security. These apartment complexes typically range from studios to spacious three-bedroom units, with many offering panoramic city views and premium finishes.

Houses and villas are available primarily in residential neighborhoods such as Arroyo Hondo, Los Ríos, and Bella Vista, ranging from colonial-style homes in Gazcue to modern family residences in gated communities. New developments are particularly concentrated in Santo Domingo Norte and the Colonial Zone, where urban renewal projects are creating fresh inventory for investors and residents.

Fixer-upper properties exist but represent a smaller segment of the market, as most buyers prefer move-in ready properties with modern amenities and energy-efficient features. The trend toward smart home technology and sustainable living has made older properties less desirable unless they're located in prime areas like the historic Colonial Zone.

As of June 2025, the construction boom continues with numerous mixed-use developments combining residential and commercial spaces, particularly in central areas where developers are responding to strong demand from professionals and expatriates seeking urban convenience.

How do current property prices compare to a few years ago, and what are they forecasted to do in the next year or two?

Property prices in Santo Domingo have experienced steady growth over recent years, with apartments showing stronger appreciation than houses in most neighborhoods.

In May 2024, apartment prices rose 7% year-over-year to DOP 118,304 (approximately $1,980 USD) per square meter, while house prices increased 5% to DOP 93,763 ($1,569 USD) per square meter. This moderate growth reflects the city's economic expansion and increasing urbanization, driven by infrastructure improvements and foreign investment.

Some neighborhoods have seen dramatic increases, with certain suburbs experiencing up to 74% price jumps over recent years, though most central areas have maintained more sustainable growth rates of 3-7% annually. Premium areas like Piantini and Naco command higher prices, with properties ranging from $2,000-$2,800 per square meter in prime locations.

Forecasts for 2025-2026 predict continued moderate appreciation of 3-5% annually, supported by ongoing infrastructure development including metro system expansions and new transportation projects. The increase in new developments is helping stabilize prices in some areas, creating more of a buyer's market where negotiation is possible.

Experts anticipate that price growth will remain steady rather than explosive, making Santo Domingo an attractive option for long-term investment without the speculative bubbles seen in other Caribbean markets.

Is it smarter to buy or rent in Santo Domingo right now, especially if you're staying medium to long term?

For medium to long-term stays in Santo Domingo, buying generally proves more advantageous than renting, particularly given the current market conditions and rental yield potential.

Buying makes financial sense if you plan to stay for more than 3-5 years, as you'll build equity while benefiting from property appreciation and potential rental income. The relatively affordable purchase prices compared to other Caribbean capitals, combined with favorable financing options and no restrictions on foreign ownership, make buying accessible for international buyers.

Rental costs in Santo Domingo range from $300 to over $2,000 per month depending on location and amenities, with prime areas like Piantini and Naco commanding premium rents that often exceed mortgage payments for similar properties. The strong rental demand means property owners can generate income of 6-10% annually in desirable areas.

Renting remains better for those seeking maximum flexibility, uncertain about long-term plans, or preferring to avoid maintenance responsibilities and property taxes averaging 1% of property value annually. However, rising rental costs due to high demand and limited supply are making purchase more attractive for stable residents.

As we reach mid-2025, the combination of stable economic growth, improving infrastructure, and strong tourism supporting rental demand creates favorable conditions for property ownership over renting for those with medium to long-term commitments to the city.

What are the latest real estate market trends in the city—are prices rising, stable, or cooling off?

Santo Domingo's real estate market in 2025 shows characteristics of a transitioning market with moderate price increases tempered by increased supply from new developments.

Prices continue rising but at a more controlled pace than previous years, with sales volume decreasing from 1.9% to 0.5% in early 2023, creating more negotiation opportunities for buyers. This slower sales pace means the market has shifted toward buyers, with many sellers willing to negotiate on both price and terms.

New construction activity remains robust, particularly in central neighborhoods like Piantini and Gazcue, where mixed-use developments are adding both residential and commercial inventory. The government's $90 million investment in Colonial Zone revitalization is driving renewed interest in historic properties.

Foreign investment continues flowing into the market, attracted by tax incentives including 50% property tax discounts and no capital gains tax for many buyers. The tourism sector's strength, with over 10 million visitors annually, supports vacation rental demand and property values in tourist-adjacent areas.

It's something we develop in our Dominican Republic property pack.

Current trends favor energy-efficient properties and smart home features, with buyers increasingly seeking modern amenities, reliable utilities, and proximity to shopping and transportation. The market shows signs of maturation with more selective buyers and realistic pricing expectations from sellers.

Which neighborhoods are considered the best to buy in—like affordable zones, upcoming areas with growth potential, and premium upscale spots?

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How does the buying process actually work step by step for foreigners—what documents do you need, and how long does it usually take?

The property buying process in Santo Domingo for foreigners follows a straightforward legal framework that treats international buyers equally to Dominican citizens.

Step one involves property search and selection using local real estate agents, online platforms like Properstar or Encuentra24, or developer sales offices. Once you identify a suitable property, you make an offer through your agent or directly to the seller, which leads to price and terms negotiation.

Step two requires signing a "Contrato de Promesa de Venta" (Promise of Sale contract) with a 10% deposit held in escrow. This legally binding document must be prepared by a licensed attorney or notary public and includes detailed property descriptions, payment terms, and delivery dates.

Step three involves due diligence, where your lawyer verifies clear title, checks for liens or legal issues, and confirms the property complies with all local regulations. This process typically takes 2-3 weeks and includes title searches at the Registry Office and property boundary surveys.

Required documents include your passport, Dominican tax identification number (RNC), proof of funds or financing pre-approval, and the notarized purchase agreement. Banks may require additional financial documentation if you're obtaining a mortgage.

Final steps include paying the remaining balance at closing, signing the deed of sale, and registering the property in your name at the Title Registry Office. You'll also pay a 3% property transfer tax, though certain developments may offer exemptions. The entire process typically takes 30-60 days from offer to closing, assuming no complications arise during due diligence.

What kind of properties can you get depending on your budget—say, under $100K, around $150K, or $250K+?

Where do you go to actually find properties—what are the trusted agencies, platforms, or contacts?

Finding properties in Santo Domingo involves multiple channels, with online platforms and established real estate agencies being the most reliable starting points for foreign buyers.

Major online platforms include Properstar Dominican Republic, which offers detailed listings with photos and neighborhood information, Encuentra24 for both Spanish and English searches, and Arkadia.com for international property listings. These platforms allow filtering by price, location, and property type while providing market comparisons.

Established real estate agencies with strong reputations include Blue Sail Realty, which specializes in Caribbean properties and offers comprehensive buyer services, Dominican Properties for luxury and investment properties, and Christie's International Real Estate for high-end markets. Local agencies like EXP Dominican Republic provide on-ground expertise and local market knowledge.

Direct developer sales are increasingly popular for new construction, with major developers maintaining sales offices in premium locations and offering pre-construction discounts of 20-30%. Many developments in Piantini and Naco market directly to international buyers with bilingual sales teams.

Word-of-mouth through expat communities remains valuable, with Facebook groups like "Santo Domingo Expats" and "DR Property Investors" offering insider knowledge and private listings. Local attorneys who specialize in real estate often maintain networks of trusted agents and can provide referrals.

Real estate exhibitions and international property shows, particularly those focused on Caribbean investments, provide opportunities to meet multiple agents and developers in person while comparing options across different neighborhoods and price ranges.

What are some common mistakes people make when buying property in Santo Domingo, and how can you avoid them?

The most critical mistake foreign buyers make is skipping proper legal due diligence, which can result in purchasing properties with unclear titles, outstanding liens, or boundary disputes.

Always hire a reputable local attorney who specializes in real estate transactions to verify ownership, check for legal encumbrances, and ensure proper "deslinde" (boundary survey) documentation. Never rely solely on seller representations or assume that attractive properties are free of legal issues.

Many buyers make decisions without visiting the property or neighborhood in person, relying only on online photos and descriptions. Physical inspection reveals critical factors like noise levels, traffic patterns, flood risks, and actual neighborhood conditions that photos cannot convey.

Payment mistakes include sending money directly to sellers or agents instead of using proper escrow services, paying large amounts before securing clear title, or making payments without proper legal documentation. Always use licensed escrow services and ensure payments are tied to specific performance milestones.

It's something we develop in our Dominican Republic property pack.

Budget miscalculations often occur when buyers focus only on purchase price without considering ongoing costs like property taxes (1% annually), maintenance fees that can range from $1,500-$20,400 annually depending on location and amenities, utility costs, and potential special assessments for building improvements.

Location errors include buying in areas prone to flooding (particularly relevant in Piantini during heavy rains), choosing properties with poor transportation access, or purchasing in neighborhoods without proper security or basic services.

What's the cost of living like in Santo Domingo in 2025—especially if you own property there?

Santo Domingo offers a significantly lower cost of living compared to North American and European cities, making it attractive for property owners and expatriates seeking Caribbean lifestyle affordability.

Housing costs for property owners include annual property taxes averaging 1% of assessed value, maintenance fees ranging from $2,000-$20,400 annually depending on building amenities and location, and utility costs that remain reasonable by international standards. Premium buildings in Piantini may charge higher maintenance fees for services like 24-hour security and concierge services.

Daily living expenses remain affordable with local meals available from $3-15, international cuisine ranging $15-40 per person, and groceries costing substantially less than North American prices. Transportation costs are minimal with efficient metro system, affordable taxis, and Uber services available throughout the city.

Healthcare in Santo Domingo provides excellent value with numerous private hospitals and clinics offering high-quality services at fraction of US costs. Many expatriates find comprehensive health insurance and medical services very affordable while maintaining international standards.

Entertainment and social costs reflect the city's vibrant culture with affordable concerts, theater, nightlife, and cultural events. Golf club memberships, beach club access, and leisure activities remain reasonably priced compared to other Caribbean destinations.

Property owners benefit from no capital gains tax in many cases, favorable exchange rates for USD income earners, and overall purchasing power that extends much further than comparable North American or European cities.

How's life as an expat in Santo Domingo—what's the lifestyle, safety, infrastructure, and community like?

Expat life in Santo Domingo offers a vibrant urban Caribbean experience with strong cultural attractions, improving infrastructure, and well-established international communities.

The lifestyle combines cosmopolitan city living with Caribbean relaxation, featuring excellent dining from street food to high-end restaurants, active nightlife in areas like Piantini and Naco, and rich cultural offerings including museums, historic sites, and the scenic Malecón waterfront. The city provides urban sophistication while maintaining affordable costs and warm climate year-round.

Safety varies significantly by neighborhood, with upscale areas like Piantini, Naco, and Bella Vista generally considered safe for walking and normal activities, while other areas require more caution, particularly at night. Most expats live in secure buildings with 24-hour security and maintain standard urban safety practices.

Infrastructure continues improving with metro system expansions, new road projects, and reliable utilities in most areas. High-speed internet, modern telecommunications, and banking services meet international standards. The city offers easy access to Las Américas International Airport for travel throughout the Caribbean and North America.

The expat community is large and diverse, particularly concentrated in Piantini, Naco, and the Colonial Zone, with numerous social groups, business networks, and cultural organizations. English-speaking services are readily available including international schools, healthcare providers, and professional services.

Healthcare facilities include modern hospitals and clinics with international accreditation, many doctors trained abroad, and comprehensive medical services at affordable costs. The city provides access to specialist care and emergency services comparable to developed countries.

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.

If you plan to rent out long-term, which areas are best for that, what kind of tenants will you get, what are they looking for, and how much rental income and yield can you expect?

Long-term rental success in Santo Domingo depends heavily on location, with central, safe, and well-connected neighborhoods providing the highest demand and most reliable tenants.

Prime rental areas include Piantini and Naco for their proximity to business districts, shopping, and restaurants, attracting expat professionals, business travelers, and affluent locals seeking modern amenities. Gazcue appeals to families and professionals seeking quieter residential atmosphere while maintaining city access.

Typical long-term tenants include expatriate business professionals working for international companies, embassy staff and NGO workers, affluent Dominican professionals, and students attending nearby universities. These tenants generally seek reliable utilities, security, parking, and proximity to work or study locations.

Tenant preferences focus on modern apartments with air conditioning, reliable internet, security features including 24-hour guards or gated communities, parking spaces, and proximity to supermarkets, restaurants, and transportation. Furnished options command premium rents but require higher initial investment and ongoing maintenance.

Rental yields in Santo Domingo range from 6-10% annually in prime areas, with Piantini and Naco achieving higher yields due to demand from expat professionals. Average rental rates vary from $800-2,500 monthly depending on size, location, and amenities.

Successful rental properties typically feature 1-3 bedrooms, modern finishes, reliable utilities, and building amenities like gyms or pools. Properties near international schools, business centers, or tourist attractions maintain higher occupancy rates and rental premiums throughout the year.

What about short-term rentals—what are the best zones, what kind of guests usually come, what are the legal rules in 2025, and how much can you realistically make?

Short-term rentals in Santo Domingo benefit from the city's position as both a business travel hub and tourist destination, with the Colonial Zone and central neighborhoods offering the highest earning potential.

The Colonial Zone represents the premium short-term rental market, attracting cultural tourists, history enthusiasts, and visitors seeking authentic Caribbean experiences. Properties near UNESCO sites, museums, and the Malecón command premium nightly rates due to unique historical atmosphere and walkable attractions.

Piantini and Naco appeal to business travelers, expat visitors, and tourists seeking modern amenities with easy access to restaurants, shopping, and nightlife. These areas provide reliable occupancy from corporate travelers, short-term work assignments, and affluent tourists preferring urban sophistication.

Typical guests include business travelers on short assignments, tourists exploring Dominican history and culture, expatriates house-hunting or transitioning to the city, and regional travelers using Santo Domingo as a Caribbean gateway. Medical tourism also drives demand from visitors seeking quality healthcare services.

Legal regulations for short-term rentals remain relatively straightforward in 2025, requiring basic business registration and tax compliance, though hosts should verify current municipal requirements and tourism tax obligations. Most areas allow short-term rentals without special permits, though some upscale buildings may have restrictions.

Revenue potential varies significantly by location and property quality, with Colonial Zone properties averaging $80-150 per night during peak seasons, while modern apartments in Piantini range $60-120 nightly. Annual occupancy rates of 50-70% are achievable in well-managed properties with professional hosting.

It's something we develop in our Dominican Republic property pack.

Based on all that, is it worth buying a property in Santo Domingo in 2025—for living there, renting it out, or flipping it for profit later?

Buying property in Santo Domingo in 2025 represents a solid investment opportunity across multiple strategies, with particularly strong fundamentals for long-term ownership and rental income generation.

For personal residence, Santo Domingo offers excellent value compared to other Caribbean capitals, with modern amenities, established expat communities, and significantly lower costs than comparable international cities. The combination of urban sophistication, cultural richness, and affordable living makes it attractive for both working professionals and retirees seeking Caribbean lifestyle without beach resort prices.

Rental investment prospects appear strong given consistent demand from business travelers, expatriate professionals, and growing tourism sector that brought over 10 million visitors to the country in 2024. Rental yields of 6-10% in prime areas exceed returns available in many developed markets, while the stable legal framework and favorable tax treatment enhance investment attractiveness.

Property flipping potential exists but requires careful market timing and neighborhood selection, with highest opportunities in emerging areas like Santo Domingo Norte or properties benefiting from the Colonial Zone's $90 million revitalization program. The moderate 3-5% annual appreciation means flipping success depends more on value-adding renovations than rapid market appreciation.

Market conditions in 2025 favor buyers with increased inventory, negotiation opportunities, and stable economic fundamentals supporting long-term growth. The government's infrastructure investments, continued foreign investment attraction, and strategic Caribbean location provide positive outlook for property values and rental demand.

Overall assessment suggests Santo Domingo property investment works best for buyers seeking stable returns through rental income or long-term appreciation rather than quick profits, with particularly strong opportunities for those planning to live in or regularly visit their properties.

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.

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