December is a time for summaries, so I decided to recap what happened over the past twelve months and present to you what properties our clients chose most frequently. I must admit it was a very interesting period, which as an agent of the only such real estate company in Poland, I can consider successful.
The year 2023 can safely be called groundbreaking. Why? Because we can now say that the Dominican Republic was visited by a record number of travelers. 10,000,000 people arrived in 2023, and this is a spectacular new result for Dominican tourism. This goal was set by the Ministry of Tourism at the beginning of the year. November closed with 9,105,043 visitors, representing 91% of the set target. As you can see, the “anticovid” policy from the pandemic period and intensive government actions are bringing the intended benefits. There’s no hiding it—the Dominican Republic knows perfectly well how to leverage its potential.
TOURISM
Returning to the matter of tourists, the above-mentioned number should naturally be divided into people who arrived by ship and those who arrived by plane. This is important because people traveling by air use apartments and more infrastructure. In this case, a total of 8,072,598 travelers flew to the Dominican Republic. Here, the key importance of the airport in Punta Cana should be emphasized, which received over half of this number—4,219,238 passengers.
As for Poles, by the end of November, 55,343 of our compatriots had arrived. Assuming that approximately 10,000 people flew to the Dominican Republic in December, the counter should stop at around 65,000. This is less than last year, but it may be due to other countries opening up after the pandemic. This does not change the fact that we are a nation that ranks 7th in Europe, and apart from a few months of high season, we do not have direct flights from Poland to the Dominican Republic.
ECONOMY
Tourism undoubtedly has a major impact on the Dominican economy. It is precisely because of such great interest from tourists that foreign companies decide to invest in this country. Despite the fact that the local GDP is the lowest since 2015, it stands at 2.5%. Nevertheless, foreign direct investment (FDI) has not fallen below $3 billion USD. The Dominican Republic remains on the list of attractive investment destinations. A stable economy, tax breaks, and various incentives attract companies that decide to place their capital in the Caribbean.
REAL ESTATE
You are probably reading this article while thinking about purchasing property abroad. When considering various destinations, the Dominican Republic is one where the choice does not end with one or two apartment complexes. In 2023, many investments were announced in the Dominican Republic. There are at least 12 worth stopping at. One can assume that this is one development project announced per month. Is this a lot or a little? I don’t want to compare the Dominican Republic to other countries, because Central American countries can be completely different (except perhaps compared to Mexico), and countries such as Spain, Dubai, Turkey, and Cyprus have completely different characteristics. In the Dominican Republic, the temperature is stable throughout the year. In Spain, unfortunately, we cannot swim in the sea/ocean in winter, and in Dubai, summer temperatures reach very high levels. In some Central American countries, there is no possibility of purchasing beachfront property or at all. This is precisely where the Dominican Republic, in my opinion, surpasses the aforementioned countries.
There are several regions in which one can invest, but one stands out the most. This refers to the east coast and the probably well-known Punta Cana. This is what we colloquially call the east coast region. This includes places such as Bavaro, Cap Cana, and Bayahibe. These are precisely the locations our clients choose. This is primarily due to the infrastructure this area has, proximity to the airport, and potential return on property.
If someone is looking for other investment regions that are not as popular as Punta Cana, and they are not primarily concerned with the rate of return or significant property value growth, they can look at regions such as the Samaná Peninsula—extremely attractive in terms of nature, Miches—which in 10 years may be an alternative to Punta Cana, Puerto Plata, Cabarete, or the Pedernales Peninsula—the apple of the current government’s eye, investing there in infrastructure to attract international partners.
MOST FREQUENTLY CHOSEN APARTMENTS
In this section, I will present the complexes that clients chose this year, dividing them by region. Let’s begin!
Bavaro
- Right by the beach
This is one of the most interesting offers of the year. The excellent location makes this property ideal for rental. If we want to maximize the rate of return and value growth, this will be one of the options to consider. Here, clients could choose apartments with one (62 m2), two (83 m2), and three bedrooms (164 m2). Prices started at $152,000 USD for a one-bedroom apartment. Two bedrooms cost from $204,000 USD, and three bedrooms from $300,000 USD. Due to high demand, just a few months after sales began, the developer decided to raise apartment prices by 5%.
- Unique architectural design
This is a project with a timeless appearance and the only one of its kind in the Caribbean. Without a doubt, this will be an impressive property consisting of 600 apartments. An undeniable advantage will be the range of amenities in the complex. Pools, a restaurant, padel courts, a shopping arcade, and a theater and entertainment area. Despite being slightly farther from the beach, a bus will run to take owners and renters to the city center. It is worth emphasizing that apartments in this complex will be delivered fully furnished. Prices for one bedroom started at $200,000 USD, the most expensive penthouses (two-level) with three bedrooms with an area of up to 200 m2 cost over $500,000 USD.
- Beachfront complex in Bavaro
This is one of the last, if not the last, investments to be built in “old” Bavaro. As is known, beachfront properties are characterized by linear development. This is a property that has a large discrepancy in apartment prices, because units without an ocean view are 72 m2 apartments valued at $260,000 USD. Front-facing apartments with sunrise views of 260 m2 and more started at $795,000 USD. Apartments will be finished in white line, with a fully finished kitchen, bathroom, and an apartment prepared for furnishing.
Bayahibe-Dominicus
- Apartments with Caribbean Sea views
An undeniable top choice when it comes to location. The apartments are located less than 50 meters from the Caribbean Sea beach, where we can admire beautiful sunsets. I am talking about two complexes by the same developer. One of them was sold out at the end of this year, and in February a new project was announced, which will be completed in 2 years. In this case, both property value growth and potential rental income are high. Nothing attracts tourists and investors like beachfront properties. Especially since only 400 meters of coastline remain in the area that can be developed. The rest is a National Park. In the first phase of the investment, one-bedroom apartments of 81 m2 started at $285,000 USD. Two bedrooms (109 m2) cost $378,000 USD. Penthouses with three bedrooms started at $495,000. Apartments on the highest floors have guaranteed views of the picturesque, turquoise waters of the Caribbean Sea.
In Phase II of the complex, a one-bedroom apartment of 62 m2 started at $266,000 USD; the complex does not have apartments larger than two bedrooms. Their area varied, but typically is 125 m2 and costs from $400,000 USD. The property is undoubtedly as attractive as its “older brother.” The complex premiered in February, and at this moment only 6 apartments remain available.
- Italian developer
This is a continuation of the construction of the entire estate on which the investment will be built. The property will be gated as standard, will have a pool, a bar, and owners will be able to use the Country Club located in the center of the estate. The complex will feature apartments with one (63 m2) and two bedrooms (77 m2). Remember that the square footage includes the balcony/terrace. The maintenance cost of such a property is $2 USD/m2. The cost of the smaller apartment is $136,200 USD. Two-bedroom apartments started at $176,000 USD. An additional advantage is the fact that the developer will deliver the apartment fully furnished. Since Bayahibe is a quieter but very charming town, such an apartment will work well as a place for your vacation, overwintering during the autumn-winter period in Poland, or for rental.
- Duplex by the Caribbean Sea
This is an alternative for people looking for a middle ground between a house and an apartment. The developer decided to build an estate of 12 so-called semi-detached houses, in which each will have 3 bedrooms and a house area of 170 m2. Additionally, owners will receive a garden with an average area of 300 m2, which will include a terrace and a pool. All this on an attractive estate, 15 minutes on foot to the beach. This is undoubtedly an alternative for people who want to spend more than a month in the Dominican Republic and achieve an attractive return. There are not many such projects in the Dominican Republic where prices ranged from $280,000 to $300,000 USD. Answering the question: the price depended primarily on the size of the plot on which the duplex was located.
- Apartments across from the beach
The title may indicate that the apartment is on the beachfront. Some agents might classify it under this characteristic, because it is 270 meters on foot to the beach and a 4-minute walk according to Google Maps. The complex will have slightly fewer amenities, but a pool and a barbecue area will be quite sufficient. The apartment building is located on the promenade, where we have plenty of attractions and everyone will find something for themselves. Prices here were very competitive. One bedroom started at $150,000 USD, two bedrooms $247,000 USD, and three bedrooms from $320,000 USD. Personally, I would probably choose such an apartment if I loved Bayahibe and wanted to rent it out and come here from time to time. Low maintenance fees and an excellent location are sufficient to benefit from such an investment.
Cap Cana
- Property in the marina basin
This is a place for people who value peace and quiet. Cap Cana is a gated community—a city where entry requires either a reservation, for example at a restaurant or accommodation rental, or of course owning property here. This makes you feel special here. There is one of the most beautiful golf courses in the Caribbean—Punta Espada, a polo field with a stud farm, the Ojos Indígenas nature reserve (a type of cenote), and a lagoon, which increases the attractiveness of the place. The place itself is developing very dynamically, and many investments have been built here recently. The property will have four floors. Apartments on the top floors will have ocean views. The complex is located in the marina. Phase I is already nearing completion. In Phase II, only the last apartments remain. One-bedroom apartments started at $465,000 USD with an area of 174 m2. Two-bedroom apartments have an area of 187 m2 and cost $540,000 USD. Penthouses have a total area of 354 m2 and cost just under a million—$930,000 USD.
- Property in the Marina
A competitive project just on the other side and closer to the marina, which has infrastructure such as a restaurant, bank, pharmacy, and shops. Here, prices started at $415,000 USD for 138 m2, two bedrooms from $500,000 USD for 163 m2, and three bedrooms from $830,000 USD. The rooftop area, in addition to the solarium—rooftop access of the penthouse apartments—will be designated as a terrace for all owners. The property will of course have a lobby, parking, a pool, and will be gated.
SUMMARY
If we summarize this year, clients most frequently chose apartments that had the greatest investment potential. In second place were so-called hybrid apartments. More and more people are choosing properties that will allow them to spend the autumn-winter period in a warm place, escaping the rainy winter weather in Poland. These were most often beachfront apartments. Why? Because for a month or three, it is an ideal place to relax, and during the owner’s absence, nothing attracts clients like a vacation by the water. Although this is a smaller group of our clients, interest in purchasing houses within gated communities is growing. Such people are primarily interested in placing capital, and the rate of return is just a pleasant addition to the climate of the Dominican Republic in which they are investing. I always say this at meetings: you buy the Dominican Republic for the climate and the place, not just the property itself.
We all like statistics and numbers. This year, the average purchase price of our client was $332,000 USD. Is this a lot? A little? A very good question. However, this is an amount for which we can buy a beachfront apartment with one bedroom or one located 5 minutes from the beach with even three bedrooms. The choice is quite large.
When choosing, an indisputable factor for all clients was location. Napoleon said that three things are needed for war. These were money, money, and money again. At Casa Dominicana, we say that three things are needed for rental: location, location, and location again. Regardless of whether you rent out the property or have it for yourself, it is worth it being in a good location. Who knows if you won’t want to sell it someday?
As for companies, our clients most often chose developers from Italy and Spain. Does this result from the construction style, developer administration, and finishing with equipment from Europe? Yes and no. As I mentioned above, when choosing an apartment, we are most often guided by the location where the complex is situated. Only in second place are the aforementioned amenities that we get “in the package.”
For us as Casa Dominicana, the year was certainly successful. From here, we would like to thank everyone who trusted us. We are very pleased that we help you fulfill your dreams of owning property in the Caribbean. We have expanded in the tourism industry and entered the market with the brand VamosDominicana, in which we organize trips for you. The next step is managing your apartments for owners who want to earn from them. Pelicano Real Estate is our brand responsible for property management and rental management. We can’t wait to see what awaits us in the new year!
Jędrzej Pacak
