The Dominican Republic Real Estate Market
Note that this information is outdated.
Referred to as ‘the diamond in the rough’ of international property investment, the Dominican Republic real estate market has shown impressive growth over the past few years. According to an article in Global Property Guide, this recent interest and investment flow has put the island nation in the spotlight of the luxury real estate market. The government has enacted laws that protect the rights of international property owners and investors in recent years. Foreigners can now purchase real estate without having to worry as much about the safety of their investments. And, unlike some other Caribbean countries, an investor doesn’t have to be a citizen or a resident to purchase property in the Dominican Republic. This simplifies and reduces the hassle factor of the complex bureaucracy that is usually associated with cross-border transactions. Although there are no restrictions on foreigners purchasing property, international buyers may find it challenging to acquire the finances needed to fund their mortgages. According a May, 2008 article in Property Wire, a global real estate news service, the mortgages offered by local lending companies can be prohibitively expensive. However, there already companies looking to fill that service gap. The biggest thing the Dominican Republic property market has going for it is affordability. Global Property Guide’s investment analysis confirms this in its March 2008 survey of Caribbean real estate prices. Bermuda, Grand Bahama, and Barbados came in first at $7,861, second at $7,020 and third at $6,728 respectively with the most expensive prices per square meter while the Dominican Republic came in at $1,324 as the most affordable market among the twenty Caribbean countries assessed. Dominican Republic still offers some of the most affordable real estate in the entire Caribbean and this is especially true for middle class buyers…many other jurisdictions have become so pricey that only the wealthy can afford.