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
If you're thinking about buying property in Santo Domingo, you probably want to know how the market is really doing right now and what you can expect in 2026.
In this guide, we break down current housing prices in Santo Domingo, days-on-market, which neighborhoods are improving fastest, and what foreigners need to know before making a purchase.
We constantly update this blog post with the latest data and market conditions so you always have current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Santo Domingo.
How's the real estate market going in Santo Domingo in 2026?
What's the average days-on-market in Santo Domingo in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Santo Domingo is around 90 days, though well-priced apartments in prime neighborhoods like Piantini, Naco, or Evaristo Morales can sell in 60 to 90 days.
The realistic range that covers most typical listings in Santo Domingo spans from about 60 days for move-in-ready units in high-demand towers to 120 to 180 days for older houses or properties needing renovation.
Compared to one or two years ago, the Santo Domingo market has remained relatively stable in terms of selling speed, with strong remittance inflows and continued foreign interest helping maintain buyer activity even as prices have risen by 7% to 10% annually.
Are properties selling above or below asking in Santo Domingo in 2026?
As of early 2026, most residential properties in Santo Domingo sell below asking price, with typical discounts ranging from about 3% to 8% under the original list price.
Only a small percentage of Santo Domingo properties sell above asking, and these are usually renovated, well-priced units in high-demand towers, while our confidence in this pattern is strong because it aligns with both local agent feedback and our own transaction records.
The property types and neighborhoods most likely to see near-asking or above-asking sales in Santo Domingo are modern apartments in Piantini, Naco, Serrallés, and La Esperilla, especially if they are newly renovated and priced competitively from the start.
By the way, you will find much more detailed data in our property pack covering the real estate market in Santo Domingo.
What kinds of residential properties can I realistically buy in Santo Domingo?
What property types dominate in Santo Domingo right now?
The estimated breakdown of residential property types available for sale in Santo Domingo in 2026 is roughly 70% to 75% apartments, 15% to 20% houses, and the remainder split between townhouses and penthouses.
Apartments represent by far the largest share of the Santo Domingo real estate market, especially in the Distrito Nacional where most formal, financeable transactions take place.
Apartments became so prevalent in Santo Domingo because the city's development model has been vertical for decades, driven by limited land availability in prime areas, high permit activity for multi-family buildings, and a growing middle class seeking modern amenities like security, backup power, and shared facilities.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for an apartment in Santo Domingo?
- How much should you pay for a condo in Santo Domingo?
Are new builds widely available in Santo Domingo right now?
The estimated share of new-build properties among all residential listings in Santo Domingo is around 30% to 40%, with new construction particularly prominent in Santo Domingo Este, which accounts for roughly 36% of new housing supply across the city.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Santo Domingo include Santo Domingo Este, Arroyo Hondo, Bella Vista, and parts of Los Alcarrizos, where developers have focused on mid-rise apartment projects targeting the growing middle class.
Which neighborhoods are improving fastest in Santo Domingo in 2026?
Which areas in Santo Domingo are gentrifying in 2026?
As of early 2026, the top neighborhoods in Santo Domingo currently showing the clearest signs of gentrification are Ciudad Colonial (Zona Colonial), Ciudad Nueva, and select pockets of Gazcue, where public investment and tourism gravity are attracting new residents and businesses.
The visible changes indicating gentrification in these Santo Domingo neighborhoods include the arrival of boutique hotels, art galleries, and upscale restaurants in the Colonial Zone, the renovation of historic buildings in Ciudad Nueva, and the conversion of older residential properties into Airbnb rentals in Gazcue.
The estimated price appreciation in these gentrifying Santo Domingo neighborhoods over the past two to three years has been around 15% to 25%, with the Colonial Zone at the higher end due to active support from the Inter-American Development Bank's revitalization program.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Santo Domingo.
Where are infrastructure projects boosting demand in Santo Domingo in 2026?
As of early 2026, the top areas in Santo Domingo where major infrastructure projects are boosting housing demand include the Malecón/George Washington Avenue corridor, the western extension toward Los Alcarrizos, and the vicinity of the planned convention center near Avenida Abraham Lincoln.
The specific infrastructure projects driving that demand in Santo Domingo include the Malecón Deportivo (a 1.7-kilometer waterfront improvement with sports facilities and public spaces), the Metro Line 1 capacity expansion with six-car trains, and the planned $400 million cruise port near the Jaragua Hotel area.
The estimated timeline for completion of these major Santo Domingo projects ranges from late 2026 for the Malecón Deportivo phases to 2028 for the cruise port, while the Metro capacity upgrades are already in testing phases and expected to be fully operational by mid-2026.
The typical price impact on nearby Santo Domingo properties is around 5% to 10% appreciation when infrastructure projects are announced, with an additional 10% to 15% once construction is visibly underway and completion is imminent.
What do locals and insiders say the market feels like in Santo Domingo?
Do people think homes are overpriced in Santo Domingo in 2026?
As of early 2026, the general sentiment among locals and market insiders in Santo Domingo is that prime neighborhood asking prices feel ambitious but not bubble-like, while secondary areas are seen as more fairly priced relative to income levels.
Locals in Santo Domingo typically cite the gap between average salaries (around $300 to $600 per month for many workers) and entry-level apartment prices (starting at $40,000 to $60,000) as evidence that homes are overpriced for the average Dominican buyer.
Those who believe Santo Domingo prices are fair point to strong remittance inflows (over $10 billion nationally in 2025), sticky construction costs that prevent prices from falling, and consistent demand from returning diaspora buyers and foreign investors.
The price-to-income ratio in Santo Domingo is high by local standards, with median home prices representing roughly 10 to 15 years of median household income, compared to regional averages of 6 to 10 years in similar Latin American cities.
What are common buyer mistakes people regret in Santo Domingo right now?
The most frequently cited buyer mistake that people regret in Santo Domingo is paying a large deposit or signing a purchase agreement before verifying the property's legal title status through the official Registro de Títulos, which can lead to disputes, delays, or total loss of funds.
The second most common mistake buyers mention regretting in Santo Domingo is underestimating closing costs and monthly ownership expenses, including the 3% transfer tax, notary fees, and building maintenance fees that can reach $200 to $500 monthly for towers with generators, pools, and security.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Santo Domingo.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Santo Domingo.
How easy is it for foreigners to buy in Santo Domingo in 2026?
Do foreigners face extra challenges in Santo Domingo right now?
The estimated overall difficulty level for foreigners buying property in Santo Domingo compared to local buyers is moderate, meaning the legal process is straightforward but the paperwork and compliance steps take longer.
The specific legal restrictions for foreign buyers in Santo Domingo are essentially none, as Dominican law under Law 16-95 grants foreigners the same property ownership rights as citizens, including the right to buy, sell, rent, and mortgage real estate without special permits.
The practical challenges foreigners most commonly encounter in Santo Domingo include navigating the requirement for apostilled and translated documents from their home country, finding bilingual attorneys outside tourist areas, and dealing with longer bank compliance timelines for source-of-funds verification.
We will tell you more in our blog article about foreigner property ownership in Santo Domingo.
Do banks lend to foreigners in Santo Domingo in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Santo Domingo through major banks like Banco Popular, Scotiabank, and BanReservas, though approval is more difficult and takes longer than for Dominican residents.
The typical loan-to-value ratios foreign buyers can expect in Santo Domingo range from 60% to 75%, meaning down payments of 25% to 40% are standard, while interest rates for USD loans start around 8% to 10% and peso loans run higher at 10.5% to 13.5% per year.
The documentation banks typically demand from foreign applicants in Santo Domingo includes two years of income tax returns, six months of bank statements, proof of creditworthiness via international credit agencies, a valid passport, and sometimes a professional property appraisal.
You can also read our latest update about mortgage and interest rates in The Dominican Republic.
How risky is buying in Santo Domingo compared to other nearby markets?
Is Santo Domingo more volatile than nearby places in 2026?
As of early 2026, Santo Domingo shows lower price volatility than resort-dependent markets like Punta Cana or Puerto Plata because its economy is more diversified across government, finance, services, and education rather than relying primarily on tourism cycles.
Over the past decade, Santo Domingo has experienced steadier price appreciation of roughly 3% to 7% annually with no major crashes, while Punta Cana saw sharper swings tied to tourism seasons and Puerto Plata experienced periods of stagnation before recent North Coast revival.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Santo Domingo.
Is Santo Domingo resilient during downturns historically?
The estimated historical resilience of Santo Domingo property values during past economic downturns is relatively strong, with the city typically experiencing slower price growth rather than sharp declines thanks to its diversified demand base.
During the 2008 to 2010 global financial crisis, Santo Domingo property prices softened by roughly 5% to 10% in nominal terms and recovery took about 2 to 3 years to return to pre-crisis levels, which was mild compared to many Caribbean resort markets.
The property types and neighborhoods in Santo Domingo that have historically held value best during downturns are mid-range apartments in established areas like Naco, Piantini, and Evaristo Morales, where local professional demand provides a floor even when foreign investment slows.
How strong is rental demand behind the scenes in Santo Domingo in 2026?
Is long-term rental demand growing in Santo Domingo in 2026?
As of early 2026, long-term rental demand in Santo Domingo is growing steadily at an estimated 3% to 5% annually, driven by continued urbanization and the expansion of the middle class from 21% to 43% of the population over the past decade.
The tenant demographics driving long-term rental demand in Santo Domingo include young professionals working in the Distrito Nacional's business districts, university students attending institutions like PUCMM and INTEC, and middle-class families who cannot yet afford to buy.
The neighborhoods in Santo Domingo with the strongest long-term rental demand right now are Piantini, Naco, Evaristo Morales, and Gazcue, where proximity to corporate offices, universities, and hospitals creates consistent tenant pools willing to pay premium rents.
You might want to check our latest analysis about rental yields in Santo Domingo.
Is short-term rental demand growing in Santo Domingo in 2026?
There are currently no city-wide regulations restricting short-term rentals in Santo Domingo, though individual condominium buildings often have their own rules prohibiting or limiting Airbnb-style rentals, which is the main practical barrier for investors.
As of early 2026, short-term rental demand in Santo Domingo is growing moderately at an estimated 5% to 8% annually, supported by tourism arrivals that reached record levels of 11.6 million visitors nationally in 2025.
The current estimated average occupancy rate for short-term rentals in Santo Domingo ranges from 55% to 65% depending on location, with properties near the Colonial Zone and Malecón achieving higher occupancy than those in residential-only neighborhoods.
The guest demographics driving short-term rental demand in Santo Domingo include business travelers visiting corporate offices, tourists using the capital as a base for exploring the Colonial Zone, and increasingly digital nomads attracted by the city's amenities and connectivity.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Santo Domingo.
What are the realistic short-term and long-term projections for Santo Domingo in 2026?
What's the 12-month outlook for demand in Santo Domingo in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Santo Domingo is moderately positive, with buyer activity expected to remain steady as long as remittance flows and economic growth stay on trend.
The key economic and political factors most likely to influence Santo Domingo demand over the next 12 months include the pace of US interest rate movements (which affect diaspora buying power), the stability of remittance inflows, and continued progress on infrastructure projects like the Malecón Deportivo.
The forecasted price movement for Santo Domingo over the next 12 months is an increase of roughly 3% to 7% in nominal terms, with stronger appreciation in prime neighborhoods and more modest gains in outlying areas.
By the way, we also have an update regarding price forecasts in The Dominican Republic.
What's the 3 to 5 year outlook for housing in Santo Domingo in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Santo Domingo is constructive, with cumulative appreciation of 15% to 30% expected in well-located neighborhoods assuming no major external shocks.
The major development projects expected to shape Santo Domingo over the next 3 to 5 years include the $400 million cruise port on the Malecón, the Santo Domingo Convention Center on the former Hotel Santo Domingo site, and continued Metro expansions toward western municipalities.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Santo Domingo is a significant slowdown in US economic growth or a policy change that reduces remittance flows, since diaspora money is a major pillar of housing demand.
Are demographics or other trends pushing prices up in Santo Domingo in 2026?
As of early 2026, demographic trends are having a meaningful upward impact on Santo Domingo housing prices, with the city's metro population growing at roughly 1.7% annually and reaching about 3.6 million residents.
The specific demographic shifts most affecting prices in Santo Domingo include continued rural-to-urban migration for employment and education opportunities, household formation among the expanding middle class, and return migration from the Dominican diaspora in the United States.
The non-demographic trends also pushing prices in Santo Domingo include the growing popularity of remote work among North American and European buyers, strong foreign direct investment flows (over $1.3 billion in Q1 2025), and elevated construction costs that limit cheap new supply.
These demographic and trend-driven price pressures in Santo Domingo are expected to continue for at least the next 5 to 10 years, given the structural urbanization pattern and the sustained appeal of Dominican property to foreign investors.
What scenario would cause a downturn in Santo Domingo in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Santo Domingo would be a combination of sharply higher interest rates (both locally and in the US) plus a significant drop in remittance inflows, which together would squeeze buyer purchasing power.
The early warning signs that would indicate such a downturn is beginning in Santo Domingo include a sustained increase in days-on-market above 120 days citywide, rising mortgage default rates in the banking system data (visible in SIMBAD), and a noticeable pullback in pre-construction sales activity.
Based on historical patterns, a potential downturn in Santo Domingo could realistically involve price declines of 10% to 15% in nominal terms over 1 to 2 years, followed by a 2 to 3 year recovery period, though the city's diversified economy makes a deeper crash unlikely.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Santo Domingo, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Banco Central de la República Dominicana (BCRD) | It's the Dominican central bank publishing official external-sector statistics including remittances, tourism, and monetary policy. | We use it to track remittance flows that support household housing purchases in Santo Domingo. We also use it to understand the broader liquidity and income backdrop going into 2026. |
| Oficina Nacional de Estadística (ONE) | ONE is the official statistics agency with primary construction and real estate activity data series. | We use it to track supply momentum through permits and unit completions in Greater Santo Domingo. We also use it to explain why apartment towers dominate and where new supply is likely to land. |
| IMF Dominican Republic 2025 Article IV | The IMF is a top-tier, methodologically transparent institution for macro assessments and risk analysis. | We use it to ground the big 2026 backdrop including growth, inflation, and financial stability themes. We also use it to outline downside scenarios that could affect Santo Domingo housing demand. |
| DGII (Dirección General de Impuestos Internos) | DGII is the tax authority, making it the definitive source for transaction taxes and closing cost calculations. | We use it to state the 3% property transfer tax level and how it's computed. We also use it to help readers budget closing costs accurately. |
| Registro Inmobiliario | It's the official property registration authority where titles are recorded and verified. | We use it to emphasize that clean title plus correct registration is the real finish line for any purchase. We also use it to shape the due diligence checklist for foreign buyers in Santo Domingo. |
| Superintendencia de Bancos SIMBAD | It's the official statistics platform for Dominican banking system data including mortgage rates and lending volumes. | We use it to track whether mortgage credit is expanding or tightening. We then translate that into what foreign buyers should expect from banks in early 2026. |
| Inter-American Development Bank (IDB) | It's a major multilateral lender with defined project scope and objectives for urban revitalization. | We use it to identify which Santo Domingo micro-areas have policy-backed uplift potential. We also use it to explain why the Colonial Zone shows sustained gentrification pressure. |
| Global Property Guide | It's an established cross-country property research publisher that cites primary sources and provides comparable metrics. | We use it to triangulate national price growth and rental yield trends when local city indices are limited. We also use it as a second opinion against the official macro picture. |
| AirDNA | It's a widely used industry dataset with consistent methodology for short-term rental metrics across cities. | We use it to estimate STR occupancy and nightly rate pressure in Santo Domingo. We also use it to flag that STR returns depend heavily on building rules and seasonality. |
| Diario Libre | It's a major Dominican newspaper reporting on infrastructure projects and urban development plans. | We use it to map infrastructure narratives into likely demand pockets near the Malecón. We also use it to link 2026 event-driven upgrades to location-specific price pressure. |
Related blog posts
- Is now a good time to invest in property in Santo Domingo?