With 2017 now well underway, we are seeing some trends emerge that are likely to signal what buyers, sellers and developers in the Dominican Republic’s real estate market can expect over the remainder of the year. If you own real estate in the Dominican Republic or are thinking about buying property (whether in a resort location like Punta Cana or Puerto Plata, or on the mainland), here are the top five real estate trends we think you will see in 2017:
1. Foreign Nationals Will Continue to Buy in the Dominican Republic
Unlike many other countries, the Dominican Republic does not place restrictions on domestic real estate purchases by foreign nationals. In fact, Dominican law provides tax exemptions and other incentives designed to attract investors and homebuyers from overseas. With a low entry point and several luxury properties available, the Dominican Republic’s real estate market will continue to be attractive to foreign buyers in 2017.
2. The Luxury Home Market Will Continue to Rebound
Fueled by both foreign and domestic buyers, the Dominican Republic’s luxury home market may be uniquely poised for growth in 2017. The country’s ease of access, developing infrastructure and tourist-friendly economy are all favorable conditions for wealthy individuals and families seeking to settle down or vacation in the Caribbean.
3. Rentals Will Offer High-Yield Investment Opportunities
The Dominican Republic’s beaches have long been a top tourist destination, and this is something that we do not expect to change anytime soon. Along with beachfront hotels and high-end resorts, rental properties – particularly in coastal locations – continue to be in high demand. In 2017, real estate investors who focus on the vacation rental market could very well see significant returns.
4. Tourism Will Continue to Support New Construction
Tourism will continue to support new construction in the commercial and residential sectors. Major construction projects in resort areas will provide new jobs, and vacationers who decide to buy in the Dominican Republic will bolster the new home construction industry across the island.
5. Construction Costs Will Remain Steady
While property values in the Dominican Republic have been gradually rising, the costs of construction have remained relatively constant in recent years. We expect this trend to continue in 2017. This means that real estate developers may find investing in the Dominican Republic to be particularly profitable. Of course, each project will present its own unique challenges, and anyone considering a real estate investment in the Dominican Republic should seek financial and legal advice from experienced local professionals.
Talk to a Real Estate Lawyer at The Del Carpio Office
The attorneys at The Del Carpio Office bring decades of experience to representing clients in real estate transactions in the Dominican Republic. With offices in Santo Domingo, the firm represents local residents, foreign nationals and corporate clients. If you have questions about buying, selling or developing real estate in the Dominican Republic, we encourage you to contact us online to discuss your legal needs.