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What is happening in Santo Domingo’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling streets of Zona Colonial to the serene neighborhoods of Piantini. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Santo Domingo real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) Investors will show more interest in the Colonial Zone for its historical charm and recent preservation efforts
The Colonial Zone in Santo Domingo is quickly becoming a prime destination for investors due to its rich history and recent preservation efforts.
With a significant investment of US$36 million already injected into the Revitalization Program, Tu Ciudad Colonial, and a total of US$90 million planned, the area is set for a major transformation. This funding, supported by the Inter-American Development Bank and the European Union, highlights strong international backing, making it a compelling opportunity for investors.
As the Colonial Zone undergoes these improvements, property values are expected to rise. While exact figures aren't available, the substantial investment and enhancements suggest a positive trend in property values. The area's growing appeal is likely to attract both tourists and locals, driving demand and making it an attractive prospect for those looking to invest in its growth.
Tourism is booming, with Santo Domingo welcoming over 8.5 million tourists in 2022 and aiming for 9.8 million by 2025. The Colonial Zone, known for its charming 16th-century architecture, is a major attraction, offering museums, restaurants, and boutique hotels. This influx of tourists is fueling demand for new businesses and restaurants, enhancing the area's vibrancy and appeal to investors.
Investors are particularly interested in the Colonial Zone's potential for growth, as the area's historical charm and recent improvements make it a unique and attractive destination. The combination of increased tourism and international support is expected to boost the local economy and create new opportunities for businesses and investors alike.
With its rich history and ongoing revitalization efforts, the Colonial Zone is poised to become a key player in the real estate market, offering a unique blend of cultural heritage and modern amenities that appeal to a wide range of investors.
Source: Travel Pulse
2) Foreign investors will target short-term rentals to benefit from tourism growth
Foreign investors are eyeing Santo Domingo for short-term rental properties, thanks to the booming tourism sector.
In 2024, the Dominican Republic welcomed a record-breaking 8,362,285 visitors, a massive jump from previous years. This surge means there's a strong demand for places to stay, making short-term rentals a hot investment.
Travelers are flocking in by air and sea, with 6,430,400 air travelers and nearly 2 million cruise passengers visiting in 2024. This shows the Dominican Republic is becoming a must-visit destination.
The government is stepping up too, planning to add 1,500 new hotel rooms in Santo Domingo and building a second terminal at Las Américas International Airport. These moves will boost the city's ability to host more tourists, likely increasing the need for short-term rentals.
Tourism is a big deal for the local economy, with $31.4 million spent daily and over $55 billion in taxes collected in 2023. This economic activity highlights the potential profits from investing in short-term rentals.
Sources: Dominican Today, Dominican Today, 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.
3) Santo Domingo’s property prices will rise moderately as demand grows
The residential property market in Santo Domingo is seeing a moderate price increase due to growing demand.
One reason for this trend is the steady population growth. In 2025, Santo Domingo's metro area population hit 3,648,000, a 1.7% rise from the previous year. This ongoing increase means more people need homes, naturally pushing property prices up.
Urbanization is another big factor. By 2022, 35.2% of the country's population lived in Greater Santo Domingo. This high urban concentration shows a strong preference for city living, boosting demand for homes in places like Santo Domingo. The Dominican Republic's stable economy also attracts both local and international investors, making real estate a safe bet.
The real estate market is also benefiting from increased tourism and foreign investment. Santo Domingo, in particular, is seeing growth thanks to infrastructure projects that improve city access, making it more appealing for both living and investing. The rise of short-term rentals, especially through platforms like Airbnb, has led to higher occupancy rates and returns, further driving up demand for residential properties.
Investors are noticing these trends, and the combination of population growth, urbanization, and economic stability is creating a favorable environment for real estate. As more people flock to the city, the need for housing continues to rise, supporting the moderate increase in property prices.
Overall, the residential property market in Santo Domingo is on an upward trajectory, with growing demand fueling price increases. This makes it an attractive option for potential buyers looking to invest in a thriving urban area.
Sources: Macrotrends, Dominican Today, Noriega Group
4) High-rise apartments will become more popular as central land becomes scarce
In Santo Domingo, high-rise apartments are gaining popularity for several compelling reasons.
One major factor is the rising property prices in central areas, which show a strong desire for urban living. In 2023 and 2024, the median price for an apartment in Santo Domingo Province was DOP 116,525 per square meter, while houses were priced at DOP 58,141 per square meter. This indicates a strong demand for housing in these central locations.
Another key reason is the limited availability of undeveloped land in central areas. By 2023, the urban population in the Dominican Republic had grown to over 9.5 million, leading to a significant housing shortage. The government reported a housing deficit of about 2.1 million units, which highlights the lack of land for new constructions in urban areas. This scarcity of land makes high-rise buildings a practical solution to accommodate more people in the same area.
The government is also pushing for urban renewal projects, like the Revitalization Program, Tu Ciudad Colonial, in Santo Domingo's Colonial Zone. These initiatives suggest a shift towards vertical development, meaning building upwards rather than outwards, to make the most of limited space in crowded areas.
Developers are responding to this trend by investing heavily in high-rise infrastructure. This investment is evident in the surge of new developments in Santo Domingo, making it a buyer’s market with competitive pricing and better choices for consumers.
Source: Properstar
5) Central Santo Domingo will see higher rental yields as urban living demand rises
Rental yields in central Santo Domingo are on the rise as more people are drawn to urban living.
In 2024, apartment prices increased by 7% and houses by 5%, showing the growing appeal of the area. The city's population is also booming, with 63,510 new residents last year, and it's expected to hit 4 million by 2030. This surge in population is fueling the demand for housing.
The government is making big moves to improve city life, investing $3.2 billion in urban infrastructure. Projects like the Integrated Transportation System, which includes the Santo Domingo Tram and cable car lines, are making the city more accessible and attractive. These upgrades are a major draw for both locals and newcomers.
Living costs in the suburbs are climbing, pushing people towards the city where they find better amenities and job opportunities. Younger folks, in particular, are flocking to urban areas, adding to the demand for rentals in central Santo Domingo.
As these trends continue, rental yields in central Santo Domingo are expected to climb, driven by the growing demand for urban living.
Sources: Airbtics, World Population Review, Dominican Today
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6) Short-term rental yields will grow as tourism and digital nomadism rise
Santo Domingo is booming with tourists, making it a hotspot for short-term rentals.
In 2024, the city saw a whopping 8 million visitors, a 55% jump from 2019. This influx has naturally spiked the demand for short-term stays, as more people are looking for temporary places to crash.
With air travel up by 45% since 2019, Santo Domingo is now more accessible than ever. This ease of travel is pulling in not just tourists but also digital nomads, who are keen on exploring the city while working remotely.
The Dominican government is pouring money into urban renewal, especially in the Colonial Zone. These efforts are making the city more appealing, which means short-term rentals in these areas are seeing more bookings and higher rates.
For those eyeing property investments, this is a golden opportunity. The combination of increased tourism and government initiatives is setting the stage for higher rental yields in the near future.
As Santo Domingo continues to attract a diverse crowd, from vacationers to remote workers, the short-term rental market is poised for growth. Investing now could mean reaping the benefits as the city’s popularity soars.
Sources: Dominican Today, GlobeNewswire, Dominican Today
7) Affordable housing projects will stabilize prices in specific neighborhoods
Affordable housing projects can stabilize prices in certain neighborhoods by boosting the supply of homes.
In Santo Domingo, the government is pushing affordable housing through initiatives like the "Happy Family National Housing Plan," backed by a $100 million World Bank loan to help low-income families. This makes affordable housing more attractive to developers, encouraging them to build more homes.
As more affordable housing becomes available, price growth can slow down. For instance, real estate agencies noted a drop in sales growth in Santo Domingo from 1.9% to 0.5% in early 2023. This indicates a crowded market with new projects, helping to keep prices steady. The increased housing supply creates a buyer's market, making prices more competitive and less volatile.
Government investments in infrastructure and basic services, like the Nuevo Domingo Savio project, aim to improve life quality in marginalized communities. These efforts can stabilize prices by enhancing living conditions and economic opportunities. As a result, neighborhoods with new affordable housing developments may see improved economic conditions and increased population stability.
In these areas, the influx of affordable housing can lead to a more balanced real estate market. With more options available, buyers have the upper hand, and sellers are encouraged to keep prices reasonable. This shift can make homeownership more accessible to a broader range of people.
Ultimately, the combination of government support and increased housing supply can create a more stable and equitable housing market. This approach not only benefits potential homeowners but also contributes to the overall economic health of the community.
Sources: Cronkite News, Dominican Today
8) Los Cacicazgos will attract retirees seeking quiet, upscale living
Los Cacicazgos is quickly becoming a top choice for retirees seeking a quiet, upscale lifestyle.
Property values in this neighborhood are on the rise, with projected increases of 3.5% in 2023, followed by 3.4% in 2024, and 3.3% in 2025. This steady growth shows a growing interest in the area, making it a smart investment for those planning a luxurious retirement.
Known as one of the most luxurious areas in Santo Domingo, Los Cacicazgos offers high-end amenities and exclusive living spaces. This matches the trend of retirees looking for peaceful and upscale environments. Plus, the neighborhood boasts lower crime rates compared to other parts of Santo Domingo, providing a safer haven for those seeking peace of mind.
Living in Los Cacicazgos means being close to high-end shopping centers like Agora Mall and Blue Mall, along with upscale dining options. This ensures that retirees have easy access to luxury amenities. The neighborhood's proximity to these conveniences adds to its appeal for those who enjoy a refined lifestyle.
Healthcare is another strong point for Los Cacicazgos. With new facilities being developed by MedShare and Solid Rock International, retirees can expect advanced medical services nearby. This focus on health and wellness makes the area even more attractive for those who prioritize their well-being.
For retirees looking for a blend of luxury, safety, and convenience, Los Cacicazgos stands out as a prime location. Its combination of rising property values, exclusive amenities, and healthcare facilities makes it a compelling choice for a serene retirement.
Sources: Everything Punta Cana, Numbeo, MedShare, KMM Realty
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Dominican Republic. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Urbanization will boost demand for city-center properties
Urbanization is driving up demand for city-center properties in places like Santo Domingo.
In recent years, Greater Santo Domingo's population has surged, highlighting a growing need for housing and amenities right in the heart of the city. This trend is part of a larger movement, with 70% of the Dominican Republic's population now living in urban areas. People are flocking to cities for better access to jobs, education, and healthcare, naturally boosting the demand for city-center properties.
The government is also playing a role by investing in urban infrastructure. For instance, the Integrated Transportation System is making city centers more accessible and livable. This kind of development is particularly appealing to younger folks who crave the vibrant lifestyle that city centers offer.
With these changes, city living is becoming more attractive, especially for those who want to be close to the action. The combination of population growth and improved infrastructure is making city-center properties a hot commodity. If you're considering buying property, these factors could make urban areas a smart choice.
Sources: Dominican Today, Land Links, Dominican Today
10) Santo Domingo's luxury market will attract international buyers for its affordability compared to other Caribbean spots
International buyers are flocking to Santo Domingo's luxury market because it offers affordable options compared to other Caribbean hotspots.
In Santo Domingo, you can snag a high-end property for between $250,000 and $600,000, which is a steal compared to places like Barbados. Imagine living in a luxury home without breaking the bank!
Living in Santo Domingo is a breeze financially. A single person can live comfortably on about $480 a month, not counting rent and utilities. This makes it a fantastic spot for those wanting to invest in luxury without the hefty price tag of other Caribbean locales.
The real estate market here is booming, with house prices jumping 5% in the last year. This surge is thanks to international buyers from the U.S., Canada, Europe, and Latin America, all eyeing the Dominican Republic's luxury offerings.
Luxury homes in Santo Domingo come with perks like private beaches, golf clubs, and round-the-clock security. You get more bang for your buck compared to similar properties elsewhere in the Caribbean.
Plus, the property tax situation is a dream for foreign investors. There's no property transfer tax, making these luxury properties even more appealing.
Sources: Simply Dominican, Immigrant Invest, Luxonomy, FazWaz
11) The growing middle class will look for affordable homes in well-connected areas
The middle class in Santo Domingo is on the rise, and they're on the hunt for affordable homes in well-connected areas.
Thanks to the Dominican Republic's booming economy, the middle class has now outgrown the poor population. This shift means better living standards and easier access to essentials like housing and education. In Santo Domingo, the urban population has exploded, reaching over 9.5 million in 2023. This growth is fueled by job opportunities in booming sectors like construction and tourism.
But with this rapid urbanization comes a challenge: a housing shortage of about 2.1 million units. Despite this, the influx of new properties has turned the market into a buyer's paradise. Competitive pricing and a variety of options are making well-connected neighborhoods the go-to choice for many.
The government is stepping up with the Integrated Transportation System (SIT-SD), pouring $3.2 billion into projects like the Santo Domingo Tram and Cable Car Line 3. These initiatives aim to boost mobility and cut down on traffic jams, making these neighborhoods even more appealing. Meanwhile, the real estate market is seeing a slowdown in price growth, which is stabilizing property prices.
This stabilization is a win for the middle class, as it makes finding affordable housing in these well-connected areas much more feasible. The growing middle class is clearly eyeing these neighborhoods, drawn by the promise of better connectivity and stable prices.
Sources: World Bank, Dominican Today, FHFA
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12) Foreign buyers will increasingly target Santo Domingo properties due to favorable exchange rates
Foreign buyers are increasingly eyeing Santo Domingo thanks to favorable exchange rates.
Over the past year, the US Dollar has strengthened against the Dominican Peso, making property purchases in Santo Domingo more appealing. This shift means that those using US Dollars can stretch their money further, getting more bang for their buck when investing in real estate here.
Historically, when exchange rates tilt in favor of foreign currencies, there's a noticeable surge in property purchases by international buyers. In recent times, the Dominican Peso hasn't outperformed the US Dollar, making now a particularly attractive moment for foreign investors to dive into the market.
Real estate agencies in Santo Domingo have noticed a slowdown in price growth, hinting at a more competitive market. This stability, paired with the favorable exchange rates, offers foreign buyers a chance to explore a range of options at competitive prices.
For those considering a move, the current market conditions in Santo Domingo present a unique opportunity. With the exchange rate in their favor, buyers can explore diverse properties without the pressure of rapidly rising prices.
As the market remains stable, foreign investors are likely to find appealing deals in Santo Domingo, making it a prime time to consider purchasing property in this vibrant city.
Sources: Simply Dominican, Exchange Rates, IMF eLibrary
13) Online platforms will simplify property purchases, easing access for foreign investors
Online platforms have transformed how foreign investors buy property, especially in places like Santo Domingo.
In 2023, real estate agents started using 3D animation and virtual tours, letting investors explore properties without leaving home. This tech-savvy approach has become the norm, making it easier for international buyers to get a feel for properties from afar.
The Dominican Republic is a hotspot for real estate, thanks to affordable prices and tax incentives that attract foreign investors. These buyers love the convenience of online platforms, which seamlessly connect them with local real estate agencies. This integration ensures they have access to a wide variety of properties, all through easy-to-use online tools.
Properties offering virtual tours not only sell for 9% more but also close 31% faster. This speed is a win-win, making the buying process quicker and boosting the chances of sealing the deal. With high mobile and internet usage in Santo Domingo, foreign investors can easily tap into the market from anywhere.
Online platforms streamline the property buying process, making it easier for foreign investors.
Sources: Dominican Today, The Agency DR, Airbtics
14) Suburban rental yields will dip slightly as city living becomes more popular
In Santo Domingo, more people are choosing city life over suburban living.
City-center amenities and lifestyle are a big draw. In 2023, over 9.5 million people lived in urban areas in the Dominican Republic, with many moving to cities for better job opportunities in booming sectors like construction and tourism. This shift is changing the housing market as people want to live closer to work and city conveniences.
Public transportation improvements are also making city life more appealing. The 2023 launch of the Integrated Transportation System (SIT-SD) has boosted connectivity in Greater Santo Domingo, making commuting easier and more efficient. This encourages even more people to move to urban areas.
With these changes, suburban rental yields are expected to decline slightly as city living becomes more popular. The convenience of urban life, combined with better transportation, is drawing people away from the suburbs.
In Santo Domingo, the metro area population has been steadily increasing, with a 1.7% growth from 2024 to 2025. This trend highlights the growing preference for urban living over suburban areas.
As more people flock to the city, the demand for urban housing continues to rise, reshaping the real estate landscape. This shift is particularly evident in Santo Domingo, where city life offers unmatched convenience and opportunities.
Sources: Macrotrends, Dominican Today, DR1 Forums
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.
15) Suburban property prices may dip slightly as urban living gains appeal
Urban living in Santo Domingo is becoming increasingly popular, causing some suburban areas to see a slight dip in property prices.
With the urban population in the Dominican Republic now over 9.5 million, city life is drawing more people in. The promise of better job opportunities and lifestyle amenities is making urban areas more attractive, pushing up demand for properties there.
Santo Domingo is buzzing with new developments, both residential and commercial, offering competitive pricing and a variety of choices. This boom is pulling people away from the suburbs, where growth is slower and investment lags.
The government is also investing heavily in urban areas, like the US$90 million Revitalization Program in the Colonial Zone. Supported by international organizations, these projects are making city living even more appealing.
As a result, suburban areas are seeing less investment, which means slower sales and longer market times. This shift is reshaping the property landscape, with urban areas taking the spotlight.
Sources: Dominicana Online, Mobilise Your City
16) Luxury rental yields will stay stable with steady demand from expats and high-income locals
Luxury rental yields in Santo Domingo have stayed stable thanks to steady demand from expatriates and high-income locals.
The city is a magnet for expatriates, offering a unique mix of modern living and rich cultural heritage. This isn't just about numbers; it's about a vibrant lifestyle that draws people globally, turning Santo Domingo into a lively social and cultural hub.
Over the years, the local economy has seen a remarkable transformation. Back in 2003, the GDP per person was $2,460, but by 2023, it had jumped to $11,187. This boost in local purchasing power means more high-income locals are looking for luxury rentals.
Real estate experts note that property values in the luxury market are either holding steady or climbing. Take Punta Cana, for example, where property prices have surged due to luxury developments and attractive rental yields, signaling a strong market.
In Santo Domingo, the luxury rental market benefits from a consistent demand, driven by both expatriates and affluent locals. This demand ensures that rental yields remain stable, making it a reliable investment option.
For those considering buying property in the Dominican Republic, the luxury segment offers a promising opportunity. With a growing expatriate community and rising local wealth, the demand for upscale living continues to thrive.
Sources: Simply Dominican, Moving Countries Guide, The Latin Investor
17) Property values in previously underdeveloped areas will rise due to new infrastructure projects
New infrastructure projects are set to boost property values in areas that were once underdeveloped.
In Santo Domingo, the government is pouring $3.2 billion into the Integrated Transportation System, which includes expanding the Santo Domingo Tram and Cable Car Line 3. This kind of investment typically leads to higher property values because it makes the area more accessible and attractive to potential buyers.
We've seen this happen before. Take Punta Cana, for example. Once a quiet area, it became a bustling tourist hub after similar projects, leading to a boom in residential investments. This is a promising sign for Santo Domingo's Colonial Zone, which is currently being revitalized.
The Colonial Zone is already a magnet for tourists, and this trend is expected to continue. In 2022, Santo Domingo attracted over 8.5 million tourists, and the goal is to hit 9.8 million by 2025. This influx of visitors is likely to increase demand for prime properties, pushing property values even higher.
As more people flock to Santo Domingo, especially the Colonial Zone, the demand for real estate is expected to rise. This increased interest can lead to higher property values as investors look to capitalize on the area's growing popularity.
With these developments, Santo Domingo is on the brink of a transformation, much like Punta Cana experienced. The combination of infrastructure improvements and a steady stream of tourists is a recipe for rising property values.
Sources: Dominican Today, Dominican Today, Caribbean Council
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.