Real estate profitability in Dominican Republic, the opportunity you can't afford to miss

The Dominican Republic has established itself as one of the most attractive destinations for real estate investment in the Caribbean. Its sustained economic growth, its political stability and its attractive tourist market make it a profitable option in the short, medium and long term.

Short-term profitability: the holiday rental boom

Tourism in the Dominican Republic continues to rise. In 2024, the country reached a record high of more than 10 million visitors, which has significantly boosted the vacation rental market. Cities such as Punta Cana, Bávaro and Santo Domingo have experienced a growing demand for temporary accommodation, with returns that can reach between 6% and 10% per annum on well-located and managed properties.

The key to short-term profitability lies in optimising occupancy through digital platforms, as well as proper property management to maximise revenue.

Investors acquiring properties in projects with hotel management services can benefit from ongoing passive income without the need to manage the property directly.

Medium-term profitability: capital appreciation and market growth

Property in the Dominican Republic has shown a steady revaluation in recent years, with an average annual increase of 5% to 8% in areas of high tourist and urban interest. This is due to several key factors:

Infrastructure expansion: The government has invested in upgrading airports, roads and utilities, which increases the value of nearby properties.
Economic growth: With GDP on the rise and a steady flow of foreign investment, demand for real estate continues to strengthen.
Increased foreign interest: The country's stability and tax incentives for foreign investors have boosted demand for real estate.
High-end projects: Luxury real estate developments and sustainable projects are attracting both local and international buyers, further boosting property values.

In this scenario, investors can expect significant appreciation of their assets over a period of 5 to 10 years, with the option of selling at a substantial profit or continuing to generate rental income.

Long-term profitability: stability and security of tenure

In the long term, the Dominican real estate market is shaping up to be a solid investment. Beyond property appreciation, factors such as the dollarisation of the real estate market, the growing expatriate community and the steadily improving quality of life make investing in real estate here a safe and sustainable option.

In addition, the country offers tax incentives for foreign investors, such as the Confotur Law, which grants tax exemptions on tourism and hotel projects. This legislation allows investors to maximise their profitability and minimise costs, ensuring greater stability in their returns over time.

For those seeking a retirement strategy or family wealth for the future, purchasing property in strategic locations guarantees a high demand asset that can generate passive income, or serve as a safe haven from global economic fluctuations.

The impact of tourism on real estate investment

Tourism remains the main driver of the Dominican economy, accounting for more than 15% of the country's GDP. This growing industry drives infrastructure development, the construction of hotels, shopping centres and, of course, residential and vacation properties. Real estate investment in tourist destinations such as Punta Cana, La Romana or Samana is directly linked to the expansion of tourism, ensuring high rental demand and a steady appreciation of property values.

The arrival of new airlines and international routes, together with government agreements to promote sustainable tourism, make real estate investment in the Dominican Republic an increasingly attractive opportunity.

Both local and foreign investors find in this market an unusual stability in the region, with solid returns and continuous growth.

Noval Properties: your best option for investing in the Dominican Republic

At Noval Properties, we are leaders in the development of high-end real estate projects in the Dominican Republic. With more than 20 years of experience in the market, we offer our clients strategic investments with high profitability and guaranteed security.

Our projects, located in the best tourist areas such as Punta Cana and Cap Cana, are designed to maximise return on investment. We have luxury options in exclusive communities with access to beaches, golf courses and premium services.