Popularity of Dominican Republic Property is Rising

There are just so many popular property markets in the Caribbean that it can be difficult for an investor to know which islands and nations to target for possible price appreciation, good value real estate, the potential for healthy yields and gains as well as an ongoing active resale market.  Those at Amberlamb who have been doing their own research on the Caribbean property scene have noticed that the popularity of Dominican Republic property is rising sharply.

In this feature we take a look at what’s driving up the appeal of property in the Dominican Republic, whether the market has much more room for significant price growth and whether there are any potential issues that a buyer should be aware of before committing to buy.

In 2003 the economy of the Dominican Republic took such a hit just at the point where serious investment interest was focused on the Caribbean country that it has remained out of the property investment limelight ever since which is unfair really because it turned its economic fortunes around by 2004 and has since managed to increase tourism traffic and significantly develop its future development prospects with the ratification of the Central America-Dominican Republic Free Trade Agreement.

Now that the Dominican Republic has a stable and mature government in power, its currency has stabilized and a great deal of the poorly constructed and ill thought out property developments that were thrown up in the early years of tourism interest have been renovated or razed, the social, economic and physical landscape is changing.

The key to Caribbean property success in the Dominican Republic lies largely in the nation’s continued tourism appeal.  Fortunately there is nothing to suggest that governmental focus will be taken away from tourism even though the Dominican Republic is attempting to diversify its economy to secure its long term success and to balance income inequality and reduce inflation.  According to extensive research from the World Travel and Tourism Council the Dominican Republic is well placed for continued economic growth in the travel and tourism sector until at least 2016 with annualized growth of over 4% possible for the next ten years or so.

American, Canadian, British and European interest in holidaying in the Dominican Republic is driving the success of the tourism market and the Dominican Republic is considered to be one of the more desirable Caribbean countries meaning that there is room for significant property price appreciation as the profile of the country rises.  Financial commitment has been given to the development of a number of luxury and high end tourism facilities and now real estate developments as well and this is having a positive knock on effect for the whole real estate market place.

Significant gains have been made in recent months but there is still room for price expansion for the short term with strong yields possible based on tourism rental demand for the foreseeable future.  The Dominican Republic makes particular sense for investors who want an investment in a location where they will holiday at least once a year as this will give the buyer the chance to keep a regular eye on their real estate asset.

In terms of issues to watch out for and factors to consider when buying a property in the Dominican Republic buyers should be aware that bills for property taxes and related rates and fees that are due annually are not usually sent to a property and therefore the payment of such debts are often overlooked.  When it comes time to sell a given property the back taxes are counted up, a fine added on top and the vendor has to clear down their liability before they can sell the property – it is sometimes the case when buying an older, resale property that the vendor cannot afford to pay their fines and taxes and cannot therefore sell the property!  There are of course ways around this – the buyer can pay off the debts and take a subsequent amount of the buying price - but be aware that this issue could present itself and if possible ask to see proof of tax payments before agreeing a buying price.

As always check the validity of title deeds, ask to see the most recent tax assessment of the property so that you can ensure what is being offered for sale to you is actually what is included under the title for the property in question and make sure there are no debts or outstanding claims against the home.  Do not even think of proceeding without taking legal advice!

Special Reports: Property News for Caribbean

Caribbean Guide for Real Estate Investors
A guide to which Caribbean islands offer real estate buyers the ultimate in property investment opportunity.

Caribbean Real Estate Buying Guide
Real estate buying processes differ throughout the Caribbean region and an investor should proceed only when fully informed of protocol

Caribbean Real Estate Investment Potential
Each island and country in the Caribbean region offers a real estate investor a wealth of diverse and exciting opportunity.