Investment in a property in the Dominican Republic
There are many reasons that may prompt the decision to buy properties in the Dominican Republic.
The process of acquiring land or building property has been reduced to its simplest form to encourage real estate purchases. But the most important reason is surely economic. Indeed, the country is in strong economic growth favouring an atmosphere conducive to business affecting all sectors, including real estate. Many clients chose to buy properties which they develop for profitable returns or just wait for the right moment to sell it back with an interesting benefit.
The development of tourism, which is one of the country’s currency providers, is not outdone and the government is now focusing on high-end tourism. This form of tourism requires privative accommodation facilities away from busy hotels. The construction of luxurious homes is an ideal solution for people looking to invest, relax and enjoy an extra passive income.
Why buy a property in the Dominican Republic?
Interests are divided into two parts, either a personal interest or a commercial interest.
As for personal interest, the beaches of the Dominican Republic will delight you.
For those who can afford it, the construction of a luxury home on the Dominican residential neighbourhoods guarantees a dream accommodation.
It is also possible to take advantage by renting the property. And this is the second interest because the Dominican real estate sector is evolving; the real estate gains are constantly increasing, so if a property is destined only for a summer residence, the best way of profitability is to rent it out. And the Dominican government, aware of the investment that could be made by the luxury real estate sector, adopts a proactive policy by setting up areas of settlement for residential areas.
The high season is the Dominican Republic is quite long compare to Europe and other countries where people vacation.
In fact all in all you can count approximately 6 months of high season where rental prices rise by 20 to 50% percent boosting further you chances of profit.
On top of that of a meagre 1% of annual property taxes, expect to pay no taxes on the revenues made from your rentals. Aside from the favourable general conjuncture, you’ll need to consider the location of your future property. Some places are seeing more growth that others…
For example, Punta Cana is one of the hottest spot in the Dominican Republic in terms of real estate investments and growth at the moment.
Successful land development is a complex process that requires a comprehensive and strategic approach that begins with a solid understanding of the residential, commercial and industrial markets.
Once understood, the process requires the analysis and appropriate selection of development sites; proper land planning and building product selection; a recognition and sensitivity to environmental considerations; knowledge of local, state and national regulations; and the ability to successfully navigate through local zoning, site plan approval and community outreach entitlement procedures.
Once the entitlement process is complete, highly technical engineering expertise in such areas as land balancing and infrastructure installation is required to successfully complete the land development process.