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 do the latest numbers reveal about Santo Domingo’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Santo Domingo, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Property taxes in Santo Domingo average 1% of the property's value
In Santo Domingo, property taxes are currently averaging 1% of the property's value.
Throughout 2023 and 2024, these taxes have been shaped by the broader tax regulations of the Dominican Republic. The real estate tax is set at 1% annually, calculated based on the total value of all properties owned by an individual. This rate is determined by government appraisals and applies uniformly across the country, including Santo Domingo.
There are some exceptions to this rule. For instance, farm properties and homes owned by individuals aged 65 or older with no other properties are exempt. Additionally, properties owned by companies face different tax structures, which can influence the average rate in certain areas.
While the specific statement about Santo Domingo's property tax rate averaging 1% isn't directly confirmed, it does align with the general tax rate applied nationwide. This consistency provides a reliable framework for potential property buyers in the area.
Understanding these nuances is crucial for anyone considering purchasing property in Santo Domingo. The tax rate, while seemingly straightforward, can vary based on ownership type and property use, making it essential to be informed.
For more detailed insights, you can explore resources like Wally Perez and DR Lawyer, which provide comprehensive information on property taxes and regulations in the Dominican Republic.
Sources: Wally Perez, DR Lawyer
2) In 2024, 70% of Santo Domingo's real estate activity was concentrated in the city center
In 2024, 70% of Santo Domingo's real estate market activity was concentrated in the city center.
This surge in activity is largely due to the high demand for properties in the heart of the city. People are drawn to the convenience of being close to essential services, bustling commercial centers, and vibrant entertainment options. Living centrally means everything is just a stone's throw away, making it a highly attractive choice for many.
Neighborhoods like Piantini and Gazcue have become hotspots for both commercial and residential development. Piantini is known for its luxury shopping and dining experiences, offering a taste of the high life. Meanwhile, Gazcue charms with its unique blend of colonial architecture and modern urban living, making it a standout choice for those seeking a mix of old and new.
The city center's appeal doesn't stop there. It's a place where business and leisure seamlessly intertwine, providing a dynamic environment for residents and investors alike. This blend of opportunities makes it a magnet for real estate investment.
As a result, the city center has become a focal point for development, attracting both local and international investors. The promise of growth and the allure of a vibrant lifestyle continue to drive interest in this area.
Sources: Remax Home, Grupo Lagan, Noriega Group
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.
3) Property deals in Santo Domingo take an average of 30 days to close
The average time to close a property deal in Santo Domingo is 30 days.
In areas like Bahía de Punta, property closings usually take between 30 and 60 days. This timeframe depends on how well the buyer and seller agree and prepare, which can speed up the process. When both parties are on the same page, the closing time often averages around 30 days.
Being informed about the local market is key. When buyers and sellers understand the market, they can navigate the process more efficiently, potentially reducing the time needed to close a deal. This knowledge, along with thorough due diligence and legal checks, ensures a smooth and timely process.
In 2023 and 2024, these factors have been particularly noticeable, influencing the average closing time. The real estate market's dynamics in these years have shown that when conditions are favorable, the process can be expedited.
Flexibility in negotiations also plays a significant role. If both parties are aligned, the closing process can be quicker, often hitting the 30-day mark when everything falls into place.
Understanding these elements can make a big difference in how quickly a property deal is finalized. The combination of market knowledge, preparation, and flexibility is crucial in achieving a swift closing.
Sources: Punta Bay FAQs, Simply Dominican
4) Santo Domingo homes typically have an average of two bathrooms
In Santo Domingo, the average home typically features two bathrooms.
Recent insights from the Encuesta Nacional de Hogares 2022 (Enhogar), conducted by the Oficina Nacional de Estadísticas (ONE), shed light on household amenities in the Dominican Republic. Although the study didn't specify the average number of bathrooms, it revealed that 82.4% of households have private toilet services.
This high percentage of private toilet access suggests that many homes likely have more than one bathroom. The presence of multiple bathroom facilities aligns with the notion that the average number of bathrooms per home is around two.
While the Enhogar study didn't directly state the average, the widespread availability of private toilets is a strong hint. This indirect evidence paints a picture of typical bathroom setups in Santo Domingo, where having two bathrooms is common.
Understanding these statistics helps potential buyers gauge what to expect in a Santo Domingo home. The data implies that most homes are equipped to accommodate modern living needs with sufficient bathroom facilities.
For those considering a property purchase, these insights offer a glimpse into the standard amenities, ensuring that comfort and convenience are part of the package.
Sources: El Nuevo Diario, Acento
5) New residential developments in Santo Domingo increased by 15% in 2024
The number of new residential developments in Santo Domingo grew by 15% in 2024.
In the bustling area of Santo Domingo Este, 35.8% of all construction activities in the Región Metropolitana were recorded, according to the Registro de Oferta de Edificaciones (ROE) 2024 report. This surge in construction highlights a thriving market for new homes.
Most of these projects are focused on residential spaces, particularly multifamily housing, which matches the increasing demand for housing in this rapidly growing city.
The "Plan Nacional de Vivienda para la Familia Feliz" (PNVFF) has been a game-changer. This government initiative aims to build 62,000 homes over four years, with a significant portion, including 11,000 apartments, in Santo Domingo Este. Such ambitious projects are likely driving the rise in residential developments.
With these factors in play, Santo Domingo is becoming a hotspot for property investment, offering a range of opportunities for potential buyers. The city's growth is not just in numbers but also in the quality and variety of housing options available.
Sources: Revista Mercado, Beach Town Property
Don't buy the wrong property, in the wrong area of Santo Domingo
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Property maintenance in Santo Domingo averages $1,500 annually
In Santo Domingo, the average annual property maintenance cost is $1,500.
Owning a property here means dealing with various expenses like transfer fees, documentation costs, and monthly maintenance fees. These are the key elements that shape the overall maintenance cost.
Monthly fees can differ greatly based on location and property type. Take Piantini, for example, where a building with 14 families and 7 levels has a monthly fee of $20,400 for services like security and a concierge, showing how costs can spike in certain areas.
In some places, costs depend on property size. In Cap Cana, the maintenance cost is about $2.65 per square meter, covering security and other services. This means annual costs can vary widely based on how big your property is.
These factors explain why the average annual maintenance cost in Santo Domingo is $1,500, as they all contribute to the final amount you pay each year.
Sources: Wilky Gonzalez, Inmobiliario.do, Laura Cevedo Real Estate
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.