In May 2024, the average price of apartments increased by 7% year-on-year to $1,980 per square meter, and houses by 5% to $1,569 per square meter.
Before the pandemic, the Dominican Republic's real estate market was moving up rapidly due to the steady growth of tourism, the emergence of luxury international hotels and the country's good economic performance. In 2020, sales plummeted due to the Covid-19 quarantine. Now the indicators have returned to their previous high level. According to realtors, foreigners come to the Dominican Republic "for surfing and windsurfing, and many of them end up buying houses here."
Foreigners can purchase real estate in the country without any restrictions. In addition, the authorities encourage investors with tax preferences:
- Tax-free receipt of pension income from foreign sources.
- 50% real estate tax relief for foreigners.
- Exemption from taxes on dividends and interest income earned domestically or abroad.
- Exemption from tax on household and personal items.
- Tax exemption for the transfer of property.
- Partial exemption from vehicle tax.
According to local experts, the activity of foreign investors leads to an increase in prices by an average of 10% annually. Today, prices for apartments with ocean views start at about $140,000.
A two-bedroom apartment in Santo Domingo is available for rent for about $1,400, Punta Cana for $1,500 per month. Rental yields range from 6.26% to 9.82% in Santo Domingo and from 3.87% to 7.92% in Punta Cana.
This year, the Dominican Republic's tourism sector continues to grow rapidly. In the first four months of 2024, the number of flights increased by 10.2% compared to the same period last year, exceeding 3 million, and the number of cruise flights increased by 12.8% to 1.1 million.
Source: Global Property Guide
