DOMINICAN REPUBLIC: An Introduction to Real Estate & Tourism
A Country on the Rise – Dominican Republic Real Estate Market Overview: Growth, Investment and Sustainability
The Dominican Republic continues to stand out as the fastest-growing economy in the Caribbean. With a population of 11.23 million and a 2024 GDP of about USD127.8 billion, it ranks as the seventh-largest economy in Latin America and the largest in the Caribbean.
Decades of economic diversification have reshaped the country’s economic landscape, with services – especially tourism, telecommunications and finance – making up nearly 60% of GDP. Strong growth in construction, agriculture, finance, healthcare, hospitality, transportation and local manufacturing persisted through 2024, alongside stable inflation. International trade has also seen consistent expansion, with major partners including the USA, China, Haiti, Mexico, Colombia, Spain, Brazil, and several European and Caribbean nations.
Coastal Real Estate in High Demand
Tourism is fuelling a major shift in real estate demand, especially in coastal regions. Both residential and commercial properties are seeing heightened interest due to increased tourist activity and a surge in foreign investors. Areas such as Punta Cana, Samana, Miches, Puerto Plata, Santo Domingo, and the south-west provinces of Pedernales, Barahona and Peravia have become key targets for development. Many large-scale projects in these regions are already under way or operational, led by international developers capitalising on strong market momentum.
At the same time, the growing local middle class – supported by economic growth and improved access to credit – is driving increased demand for affordable housing across urban areas.
Rise of Luxury and Eco-Friendly Developments
Luxury real estate is booming. The Dominican Republic has become a prime destination for high net worth individuals seeking vacation homes and investment properties. Since the COVID-19 pandemic, the volume of luxury property transactions has surged, particularly in beach communities and resort zones.
Sustainability is becoming a priority in new developments. More projects are incorporating green building practices, such as solar energy systems, rainwater harvesting and green roofs. These features are increasingly appealing to environmentally conscious buyers and investors, reflecting a broader global trend towards sustainable living.
Rentals and Investment Hotspots
A significant trend in the investment space is the purchase of properties for rental income. Tourist-heavy areas such as Punta Cana, Puerto Plata, Las Terrenas and select districts of Santo Domingo have developed strong short-term rental markets. These areas attract seasonal visitors who prefer to rent rather than buy, offering investors reliable income streams and high occupancy rates.
Public-Private Partnerships and Regional Development
Strategic public-private partnerships are expanding the country’s tourism map. In the south-western region, virgin coastal areas such as Cabo Rojo and Bahía de las Águilas in Pedernales are being developed with an eco-friendly approach. Planned infrastructure includes hotels, residential communities and a new international airport, with an emphasis on sustainable tourism and conservation.
In Santo Domingo, the Ciudad Juan Bosch initiative represents one of the country’s largest housing projects – over 12,000 homes built through a partnership where the government provided land and infrastructure while the private sector handled construction. The project targets low-income families and addresses urban housing shortages.
Meanwhile, in the eastern region, the newly launched Hotel and Tourism Association of El Seibo and Miches (PROMICHES) is working to position Miches as a model for responsible tourism. With USD1.18 billion in projected investment, PROMICHES plans to add 3,400 hotel rooms and 1,400 residential units while promoting environmental stewardship and cultural inclusion.
Impact of Disruptive Technologies on Real Estate
Disruptive technologies are reshaping the real estate industry in the Dominican Republic, unlocking new efficiencies and opportunities across the value chain. Key technologies driving change include augmented reality (AR), drones, artificial intelligence (AI), instant communication tools, social media, big data and the expanding 5G network.
AR and drone technology have seen the fastest adoption. They are widely used for property surveys, neighbourhood scans and immersive virtual tours – transforming how properties are marketed and experienced. The fast-paced nature of real estate has also made instant messaging platforms and social media indispensable for client communication, lead generation and property promotion.
AI is gaining traction in customer relationship management and smart listings, though the industry has yet to fully capitalise on the potential of big data. That is expected to shift as more platforms integrate AI-powered analytics and predictive modelling.
The rollout of 5G, prioritised by the Dominican government, is set to further accelerate digital transformation. It will impact everything from smart building design to the integration of internet of things (IoT) devices in real estate, enabling real-time monitoring and enhanced building automation. Smart buildings have already become standard in many new developments across the country.
Looking ahead, blockchain is expected to play a growing role. Promoted for its security, transparency and efficiency in handling high-value transactions, blockchain could redefine how deals are executed and recorded in the Dominican property market.
Regulatory Developments in Real Estate
The Dominican Republic is steadily modernising its legal framework to create a more transparent, efficient and secure environment for real estate transactions – especially to attract and protect foreign investment. Key improvements include streamlining the processes for acquiring title insurance and registering property – both critical steps for buyers. The government has introduced or updated several regulatory instruments, including:
- general regulations for real estate courts;
- title registration procedures;
- cadastral measurement and land demarcation standards; and
- proposed reforms to the general bill on real estate rentals and evictions, currently under review in Congress.
In 2024, government policy continued to prioritise infrastructure development alongside regulatory updates. Major projects have included road expansions, airport upgrades and the refurbishment of cruise ship ports, all aimed at supporting tourism and broader economic growth.
A significant shift is expected following President Luis Abinader’s August 2024 inauguration for his second term, during which he confirmed plans to implement a fiscal reform package. Backed by recommendations from the International Monetary Fund (IMF), the reform is expected to impact taxation and public spending – factors that could influence both real estate development and investment strategies moving forward.
Foreign Investment in the Dominican Republic
Over the past two decades, the Dominican Republic has positioned itself as the leading destination for foreign investment in the Caribbean. A combination of investor-friendly policies, legal stability and economic openness has helped create a highly attractive environment for international capital. The Dominican Constitution guarantees equal treatment for foreign and local investors. Foreign individuals and entities are subject to the same laws and regulations as domestic investors, with full rights to own real estate, participate in joint ventures and hold equity in local businesses.
There are no major restrictions on foreign ownership, and investors are free to repatriate both profits and capital. These protections, combined with ongoing legal reforms and infrastructure development, continue to reinforce the country’s reputation as a secure and profitable market for international real estate and business investments.
Income Convergence and Economic Outlook
The Dominican Republic is making significant strides in income convergence, rapidly narrowing the gap with the United States. According to a recent IMF report, the country is on a path that could see it reach advanced economy status within the next 40 years – a rare and ambitious trajectory in the region. During the opening remarks of the IMF’s XVIII CAPDR Regional Conference on 29 July 2024, Deputy Managing Director Kenji Okamura emphasised the country’s performance:
“This year, Central America, Panama and the Dominican Republic outperformed the rest of Latin America and other emerging markets with stronger growth and lower inflation. In the medium-term, we project growth in these countries to be about double that of the Latin American and Caribbean region – more in line with other emerging market economies.”
This projection underscores the Dominican Republic’s long-term macroeconomic potential and reinforces investor confidence in the country’s continued development, particularly in sectors such as real estate, infrastructure, tourism and technology.