If you’ve been thinking about investing in property abroad, now is the time to take a serious look at the Dominican Republic. From record-breaking tourism to tax incentives and year-round rental demand, the DR is in a unique window of growth — and it’s still early enough for savvy buyers to get in at great value.
After tons of research, conversations with developers, and market deep-dives, here’s why 2025 is such a promising time to invest.
1. Tourism Is Surging — And Driving Demand
Tourism is the engine behind the Dominican real estate market. In 2024, the DR welcomed 11.2 million visitors — a 9% increase from 2023 and a 48% jump since 2019. Most visitors came from the U.S. (46%) and Canada (19%), and those numbers are still climbing.
This rising tide of tourism is fueling demand for vacation rentals, new developments, and second homes — especially in hotspots like Punta Cana, Bávaro, and Las Terrenas.
2. Strong Rental Yields and Appreciation Potential
In key tourist regions, investors are seeing 6–12% annual rental yields, and property prices are climbing at 3–10% per year depending on location.
- Punta Cana: 7–10% yields, 5–7% appreciation
- Bávaro: 6–10% ROI, with high year-round demand
- Las Terrenas: Up to 20% price increases in high-demand pockets
Compared to other Caribbean destinations, property in the DR is still 20–30% more affordable, making it one of the best value markets in the region.
3. CONFOTUR = Massive Tax Savings
The CONFOTUR law offers major incentives for buyers, including:
- No property tax for 15 years
- No title transfer tax at closing
Projects with CONFOTUR approval are typically newer or pre-construction projects, professionally managed, and located in high-demand areas. These exemptions can save you thousands of dollars over time and boost your overall ROI.
4. Foreigners Can Buy — With Full Ownership Rights
There are no restrictions on foreign property ownership in the Dominican Republic. Whether you’re buying a condo, villa, or land, you have the same rights as a local — full title, full resale ability.
5. Infrastructure Is Rapidly Improving
Massive government and private investment is underway:
- Airport upgrades (Punta Cana, El Catey, Santo Domingo)
- New highways connecting coastal towns
- Eco-resorts and green housing developments
- Cruise port expansions in Puerto Plata and Samaná
These upgrades are pushing values higher and making previously hard-to-reach areas more accessible and desirable.
6. The Market Is Still in Early Growth Stages
This is the window.
Unlike markets that are already saturated, many areas in the DR — especially Las Galeras, El Valle, and parts of Las Terrenas — are still in the early stages of their real estate cycle. Prices are low, competition is manageable, and the long-term upside is strong.
7. A Shift Toward Sustainable, Eco-Luxury Real Estate
Buyers — especially from Canada and the USA — are showing growing interest in eco-forward developments with solar energy, rainwater capture, and sustainable construction. Developers are responding, with over $250 million committed to green housing in the past year.
Expect this trend to grow, especially in off-grid destinations like El Valle and Las Galeras.
Areas to Watch (and Why)
| Region | Why It’s Hot |
|---|---|
| Punta Cana | Best for short-term rentals and vacation homes; well-established market |
| Bávaro | Year-round tourist demand; new builds performing strongly |
| Las Terrenas | Fast-growing, boutique vibe, strong appreciation potential |
| Samaná Peninsula | Off-grid luxury, eco-retreats, early-stage pricing |
| Santo Domingo | Urban growth, modern condos, local rental demand |
| Santiago | Young buyers, tech growth, urban lifestyle trends |
A Word of Caution
Not all investments in the DR are created equal. We advise you to be cautious with:
- Rural land without Deslinde (title survey)
- Oversupplied areas like parts of Sosúa and Cabarete
- Remote pre-construction with no infrastructure
- Large outdated homes in outer Santo Domingo
When in doubt, work with someone who knows the terrain. We’re happy to help guide you.
Final Take
There’s no perfect time to buy real estate — but there is a smart time. In the Dominican Republic, 2025 checks every box:
✅ Affordable entry prices
✅ High rental demand
✅ Long-term appreciation
✅ Full ownership rights
✅ Tax incentives through CONFOTUR
✅ Infrastructure improving fast
✅ Growing interest from global investors
Whether you’re looking for lifestyle, income, or a long-term investment, the DR offers all three — and the window is wide open.
Want to explore properties or talk strategy?
Book a free consultation to explore your goal, budget, and options, or download the FREE Buyer’s Guide to learn more about how to buy property in the Dominican Republic as a Canadian or American.
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