Dominican real estate market overview

The Dominican Republic is located in the eastern part of the island of Haiti and on several coastal islands surrounded by the Caribbean Sea. According to 2020 data, about 10 million people live here, most of whom speak Spanish, the official language of the country. The republic got its name from the name of the capital - Santo Domingo, whose patron saint is Saint Dominic. The island of Haiti was discovered by Christopher Columbus, then these lands began to belong to the Spaniards, who did not always successfully defend their rights as a colonizer in battles with Great Britain and France. In 1844, the independence of the Republic was proclaimed, but later the United States took over the country, successfully capturing it in 1916 for eight years. But in the end, the Dominican Republic, which has experienced a rich history of independence, has now become a country that many now dream of as their second home.

Dominicana is a wonderful year-round resort, known for its endless beaches, beautiful nature, good ecology, where a visa is not required for citizens of Russia and CIS countries. The political situation is stable here and stable economic growth is observed. In addition, in the Dominican Republic it is quite simple to obtain the status of a resident of the country, and eventually citizenship. Many foreigners like not only the characteristics of the country itself, but also the attitude of residents to visitors: both in the form of friendly communication, and in the form of loyal laws towards citizens of other states. That's why so many foreigners move here, especially those who have established a remote work option in order to work productively and relax without wasting time moving around the world.

Land and real estate prices

In this Caribbean cradle of Western civilization, real estate can now be purchased by any foreigner who has a valid passport for at least three months from the date of the start of the trip. From an investment point of view, the Dominican Republic is a very attractive option, where real estate prices, although growing by an average of 30-40% annually, still remain more affordable than in Europe and other Caribbean countries. This is largely due to inexpensive land: for example, in the city you can buy a plot on a hill at a cost of $ 45 per sq.m. The territory located closer to the sea will be more expensive, but still available for purchase: you can find plots near the shore at $ 30-50 per sq.m, however, it is worth considering that here we are talking about the purchase of significant spaces - from 10,000 sq.m. Land on the first line will cost 200-400 dollars per square meter. The most affordable land prices can be found on plots in the mountains.

On average, a square meter of housing in an apartment in the Dominican Republic is usually a little more expensive than in individual houses and is about $ 1,900. A small one-bedroom apartment in the Dominican Republic can be purchased for $ 50,000, but here it is worth understanding that in most cases you will have to get to the shore within half an hour by car. Small studios with a similar distance from the water are sold for $20,000-$30,000. The cost of a two-bedroom apartment in a building located on the second or third line from the sea with a swimming pool and local infrastructure will be about $ 100,000.

Both in the primary and in the secondary market of Dominican housing (depends on the specific location) it is quite realistic to buy a three-bedroom house in a gated community for $ 170,000, located 20 minutes walk from the sea. At the same time, the house will definitely have a swimming pool and a plot of 800 sq.m. The Dominican Republic is famous for its villas, which can be bought for $ 150,000, while the object will not be very far from the ocean. Fans of the colonial architectural style here can find an object for $ 500,000, located near the shore.

Where to buy real estate in the Dominican Republic

Dominicana is good because almost any corner of it is perfect for living, especially if you get your own car, so the field of choice increases significantly. Most often, foreigners purchase affordable houses and apartments in Bavaro, Cabarete, Punta Cana, Sosua. At the same time, you can not only profitably buy housing here, but also successfully rent it to tourists, since these picturesque resorts are very popular among vacationers.

Purchase of real estate by foreigners and taxes

In the Dominican Republic since 1998, foreigners have equal rights and obligations with local citizens in the matter of buying, owning and selling real estate. Usually, the future buyer first applies to a real estate agency operating in the republic. The company's lawyer draws up the necessary list of documents for the transaction. When the buyer arrives in the Dominican Republic and passes the necessary papers, the lawyer makes sure of their originality. After the object for purchase is determined, and the lawyer has checked the seller for the presence of unpaid credit funds, court encumbrances, a notary enters into an agreement of intent. After that, the object is reserved and a deposit of up to 10% of the transaction amount is made.

Then a contract of sale is drawn up (this can also be done remotely if the buyer issues a power of attorney at the nearest consulate of the Dominican Republic), a payment schedule is prescribed, after which the lawyer sends the papers to the registration authority for a change of ownership of the property. These services will cost 1% of the transaction value, and the buyer will also need to pay 3% for the procedure of reissuing the rights to own the objects of sale, and the services of the realtor are paid by the seller. It should be noted that taxes are calculated not from the price specified in the final contract of sale, as is done in many countries, but from the cadastral value of the property, established by the results of the assessment made by the tax authorities.

Thank you for your help in preparing the material Irina Kuziv, an expert of the company ServiBrokers Realty Consultants