DOMINICAN REPUBLIC: An Introduction to Real Estate & Tourism

Legal Trends in Real Estate and Tourism in the Dominican Republic

The Dominican Republic has remained active, driven by economic growth, increased foreign investment, and a robust tourism sector. It is recognised as a resilient destination and was one of the most popular places to visit in 2024 worldwide. In general terms, the country was projected as a leader in economic growth for the region at the end of 2024, as reflected in its GDP expansion rhythm.

During January–September 2024, the Dominican GDP recorded an accumulated interannual growth of 5.1%. According to the Central Bank of the Dominican Republic, this performance took place in an environment of price stability determined by the implementation of appropriate monetary and fiscal policies, which have made it possible to overcome appropriate risk factors faced by the Dominican economy. For 2025, the leading economic activities in terms of added value include financial services, hospitality, transportation, real estate and construction, communications, energy, and manufacturing (including free zones) – all of which have experienced significant growth.

Specifically, in the tourism and real estate sectors, the jurisdiction has experienced significant favourable behaviour as a result of a combination of factors, including:

• strategic and natural advantages that have consolidated the country as a benchmark in the tourist industry;
• the development and strengthening of infrastructure;
• diversification of the offer; and
• promotion in the international markets.

Furthermore, the expansion of air and maritime connectivity – along with the geographical position of the country in the Caribbean and a propitious climate for foreign investment – have contributed to strengthening these sectors, which are key to the national economy. Key investors and allies traditionally come from Canada, Mexico and the USA; however, other countries have shown an increase in participation, such as France, Brazil, Germany, Panama, Italy, and the UK.

Trends in development structures

Foreign investment transaction data evidence positive and sustainable growth. Since 2022, the most significant sectors and activities in the Dominican Republic’s real estate landscape are:

• tourism and hospitality, with the acquisition and development of new hotels, resorts, and vacation properties;
• residential development, with new luxury and high-end residential properties (eg, gated communities, villas and condominiums); and
• commercial real estate, including the acquisition and development of office spaces, shopping malls, and mixed-use developments.

Also worthy of note are industrial real estate investments, with the development and acquisition of industrial parks, warehouses, and logistics centres driven by the growth in manufacturing and internationalised services. Most of these projects have a common interest in sustainability and ESG elements, as investors are increasingly looking at the long-term impact of their acquisitions, focusing on sustainable development and eco-friendly practices and promoting sustainable construction standards.

As one of the top Caribbean destinations, the Dominican Republic has emerged as a key opportunity market where international hotel chains and investment groups have been actively acquiring and merging with local entities to expand their presence. By the end of 2024, the tourism industry generated a total of USD4.5 billion in direct investment, including a significant increase in tourism activities, the construction of new hotel developments, and real estate investment opportunities – attracting 11,192,047 non-resident visitors during this period. In 2025, the Dominican government will prioritise attracting investment into new touristic destinations such as Miches, Samaná, Costa del Ambar and Punta Bergantín in Puerto Plata, as well as Santiago. Meanwhile, tourism and real estate investments continue to grow in well-known destinations such as Punta Cana.

At the same time, the residential real estate sector (particularly luxury and high-end properties) has shown significant activity. High net worth individuals and real estate development companies have been acquiring prime properties.

An emerging trend during the past few years has been the creation of real estate trusts. The real estate trust has become the ideal vehicle to facilitate negotiations between land contributors, promoters, and other stakeholders that participate in the investment – mitigating the risk of administration of the investors’ resources when they are deposited in the trust accounts, while also mitigating the financial entities' risk, thus facilitating credit management. There are also tax exemptions and special treatments, based on the structure created. By May 2024, there were 1,662 registered trusts – of which, around 79% were in real estate and real estate development.

On the other hand, it is very important to highlight the increasing interest in the development of PPPs. In 2021, there were only 13 initiatives for this model of investment. Since the incorporation of Law 47-20, which created the General Directorate of Public-Private Partnerships, there have been more than 26 projects presented – 21 of which have come from the private sector. Current projects in real estate and tourism include the construction of Duarte Port and touristic facilities in Arroyo Barril and the Cabo Rojo development currently in progress in Pedernales, which includes a maritime port, an airport, residences and new hotels, as well as general infrastructure.

Regulatory updates

As part of the policies of modernisation, the Dominican Republic continues to improve its legal framework, so as to enhance warranties and legal security in areas as important as real estate and tourism. It is crucial to highlight the increasing focus on the development of PPPs, initiated under the scope of Law 47-20 on PPPs and its implementing regulations.

As the real estate sector continues to grow, particularly in respect of tourism and commercial properties, there has been increasing interest from local and international investors in developing REITs, prompting ongoing discussions around new regulations. Meanwhile, the introduction of Law No 163-21 to promote the placement and marketing of publicly offered securities in the stock market of the Dominican Republic aims to remove barriers and enhance securities market dynamics through incentives.

With regard to real estate contracts and transactions, with Resolution 788-2022, the National Direction of Registry of Titles allowed – where signing does not require a witness or formal notarisation – that the signatures of the parties and officials involved can be carried out in digital format if such signatures comply with the local standards and registration regulations.

There are currently new legislative initiatives and projects in discussion at Congress, including the incorporation of real estate brokerage regulation and a modernised law for property lease and tenancy.

As the growing trend towards sustainability and ESG factors in real estate and tourism investments continues, the Dominican government works on environmental normative and tax incentives through the National Plan for Adaptation to Climate Change and the National Development Strategy 2030.

Outlook

The outlook for real estate and tourism in the Dominican Republic is positive, with continued interest from international investors, particularly in the tourism, free-trade zones, industrial, and residential sectors. As the global economy keeps working on its stability, more transactions are expected, especially in sectors that are aligned with the country’s economic growth strategies.

The country’s real estate market has demonstrated resilience and adaptability, making it a significant focus area for activity in the Latin America and Caribbean region. Studies say that by 2030 the Dominican Republic will project itself as the leading Caribbean country, thanks to a multiple-destination focus based on inclusive and sustainable tourism, which promotes the preservation of natural resources and the touristic culture of its residents.