The market finally indicates stability and future belief in Dominican Republic Real Estate

West Indies Real Estate encouraged by latest trends

In recent months, West Indies Real Estate has found that the Dominican Republic property market has enjoyed an upturn in serious enquiries.  Of course, there are always nervous clients, which are to be expected as people like the idea of a tropical home but, in truth, are not ready to commit.  However, it does appear that over three quarters of those intending to purchase second homes plan to buy within the next year or so.

Change of lifestyle and owning a vacation home feature high in the reasons for buying, but there has also been a very steady build-up, in the last couple of months, of investors scanning the market again.

Retirees are still buying, but are proving a little more cautious in committing to an overseas home in the Dominican Republic. For the second home purchaser, more so than ever, the appeal of good potential rental revenue is a key factor.  Oceanfront and ocean view properties are, as always, in high demand.  However, retirees to the north coast of the Dominican Republic are keen to take advantage of the noticeably lower prices of hillside properties, which are still only a five to ten minutes drive to the beach. With retirees in mind, the addition of many spa and excellent medical facilities has added to the allure of this Caribbean hub.

Eco-friendly homes, whilst usually of interest, have not figured so highly in the requirements of our purchasers.  However, eco-friendly land for organic produce is of great interest to many farm owners from North America and demand for land for bio-fuels is increasing.

Sports, such as golf, remain a strong attraction to second home purchasers and the north of the island has shown a noticeable interest in the renovation of existing courses to higher standards of late, improving choices for golfers.

Encouraging North American purchasers to look beyond their own country for a second home has always been a challenge, with most buyers choosing to stay within 1,000 miles from their home. However, with the benefits of a larger airport and heavier traffic reported this year, the Dominican Republic as a second base is becoming a very appealing alternative.

Without a doubt, a 2 bedroom/2 bathroom condo within a short walk of the beach remains the most popular choice for purchasers over here, with many budgets nowadays starting from around US$100,000+.  Tropical villas as single-family homes with a good-sized lot and private pool, on average costing around US$250,000, are also very popular.  We are finding that most clients do not require financing, cash usually being available to make the purchase.

Despite the world economic situation, the fact that the Dominican Republic is a ‘destination’ has meant that prices, to some degree, have remained fairly stable; although there have been a few exceptions, with owners willing to negotiate considerably, dependent on their situation.

The future is starting to look good.

 _{^{Judith Fox-Hogg}}                                                                                                

Broker,

West Indies Real Estate