Attractive investment conditions for foreign buyers
A total of more than 1,000 kilometres of beaches, an attractive climate all year round, picturesque villages and a hospitable local population make the island state between the Atlantic and the Caribbean a desirable holiday destination. Over the last decade in particular, the country has evolved from being solely a tourist destination into a sought-after market for second homes – due to numerous investments in its infrastructure. Thanks to good flight connections, the Dominican Republic can be reached from many cities around the world with absolute convenience.
Political stability, a constantly growing economy and favourable legislation make for very attrac-tive conditions for investment. Flourishing sectors such as tourism, mining, construction, insurance and the energy industry are attracting increasing numbers of foreign investors, which in turn is giving an additional boost to the Dominican property market. International buyers dominate with a share of around 70 percent of the market. Enquiries for prestigious second homes are received from around the world, and are particularly popular amongst buyers for private residency from the United States, Canada and Europe. Yet more interested parties originate from Asia, South America and Russia. Besides native Dominicans, the investor demographic on the market tends to be dominated by US Americans, Canadians, Spaniards, Russians and Venezuelans.
The most desirable locations for second homes include Punta Cana, Samaná, Juan Dolio, Puerto Plata and in particular the exclusive Casa de Campo, which is also known as “the Hamptons of the Dominican Republic”. Villa properties directly by the ocean are in particularly high demand here. Resorts are also a very popular option, offering high-class real estate as well as an excellent all-round service and first-class golf courses. Exclusive estates in premium locations can reach top prices in the Dominican Republic of up to 13 million euros (approx. 10.9 million pounds). In the capital Santo Domingo too, numerous prime locations have emerged that can testify to stable re-turns and are therefore particularly sought-after amongst investors. For freehold apartments in very good locations, buyers are willing to pay as much as 1,700 euros (approx. 1,400 pounds) per square metre. For first-class apartments in a prime location with a modern interior standard, monthly rent of up to 10 euros (approx. 8,50 pounds) per square metre can be charged. Rental investments are a popular form of investment as increasing numbers of people are coming to the Dominican Republic for professional reasons and making it their home for a limited period of time. Engel & Völkers Santo Domingo is witnessing this trend increasingly with smaller sized apartments. This development can be attributed in particular to family structures becoming ever smaller.