The Dominican Republic is an ideal destination for investment, where investors can obtain a rental property of high quality, profitability and capital appreciation, without requiring a high down payment and non-residents or foreigners have access to local bank financing.
A country with zero restrictions for foreigners to invest, with incentive of residency for real estate acquisition; with a large portfolio of properties and tax exemptions.
During the 2016 and 2018 periods, the flow of tourists to the country had grown.
Did you know that since 2019, Dominican Republic, and in particular Punta Cana, has seen strong growth in the segment of tourists who prefer to stay in fully equipped luxury condominiums, rather than hotels or resorts?
According to the Central Bank of the Dominican Republic, 6% of tourists who visited the country in the first 9 months of 2019 preferred to choose to stay in “other accommodation”, registering an increase of 10.6% during said period.
In Punta Cana, the Airbnb platform for the year 2019 recorded 3,382 properties intended for the reservation of active tourist rental accommodation with an average occupancy of 82% per year.
The average short-term rental price in Punta Cana is US$108 per day in one-bedroom units; and has quarterly growth of 3%, according to data from AirDNA, a market research firm specializing in Airbnb. Based on current rental trends, market average rental rates and expected occupancy returns of 12% to 15% net can be achieved.
Now imagine the possibility of creating a real estate portfolio in a location with high annual occupancy and promising growth without needing all the acquisition capital.
When can we talk about this possibility, to start now?
Itís nearly impossible to find well-informed people for this topic, but you seem like you know what youíre talking about! Thanks