DR Real Estate Market

Tourism has increased whether you want to credit covid relief, more people from other tourist areas(Mexico) and many people from Venezuela, Columbia, and Europe visiting. Flights to DR have been very expensive and have not come down for slow season.

- @DRVisitor

@larisaschiesser would love to see a Brazilian style house.  No idea what it looks like

And now it really looks like an Ad!

- @planner

@sberger50 If you are asking me. Her office is in Bella Vista, but she manages properties all over DR. and I do mean all over DR. !

And why am I thinking of that old joke about boat owners......"the two best days in a boat owner's life are the day they buy a boat and the day they sell it".

The same goes for real estate here.

- @RockyM

@Tippj I have dealt with a few in DR until I got the one I currently have and have had for the last 5 years. My cost is a flat 10% of monthly rent collected as has been with the previous property managers I had in the past also. Which to me is super low cost for the work they do for me.

Any updates on the real estate market, specifically in Las Terrenas?  It seems like pre-construction properties are still selling well.  For example, I believe The Reef project is pretty much sold out, and the new Silver Beach by the same developer is doing well.

Still considering buying a property there, was just hoping to get some thoughts on the state of the current market.

No cooling off like it is here in Canada?

I don't think the market is "hot" or anything.

Can't say for las terrenas, but for punta cana it's definitely normal/slow (due to increase in prices.)

Example, I bought a pre built 1.5 years ago, getting delivered next month, same company that is building the reef, I'm trying to re sell it right now at breakeven and there's zero interest at all, so probably will turn it into a airbnb and hope for the best!

My feeling is most prebuilt get solds easier due to no tax / money laundering in DR. Most get turn into bnb's/rental. I think the real estate boom from last year is over and back to normal (you buy a property and sell at breakeven!)

@jeanchris101

Did you originally buy it for reasons to be a flip?

@Yralinoska Have you found a home? Im building in Puerto Plata. In a gated area called La Estancia. My villa will be ready in August. The builder has another villa next to mine under construction. He has built 2 and then these 2. He lives down the block in a very nice estate. Everything is as per plans. He has an architect that does a professional job. His homes are all green. Solar panels on the roof. each villa has a nice swimming pool. He has 2 more lots on the other side of my villa. I’m not trying to sell for him. I say you wanted what I have found. I would be glad to put you in direct touch with him. He is Dominican and worked in Canada. He is bi lingual. As of the last time I talked a 3 bedroom, 2 level villa with a large terrace. Nice size family pool. Is currently under construction. 365,000$ US.

@jeanchris101 what is the property you are trying to sell? Send me a message with details please.

This is a great discussion. How is the market looking now amd what do you expect for 2023 / 2024? 

@lovethedr hey can I give you my information so I can let you see the apartment I selling and car ***

We don't permit sharing of personal contact information. Please post in the classifieds!

I am ALWAYS interested in a "RE market update" for the DR!! However, I wonder it if might belong in a new/different thread, so we can keep 2022 and 2023 separated in our heads and expat.com annals.

Either way, here's a modest input regarding rentals:

• Compared to our "DR Grand Tour" in 2022, this year we're not really investigating anything to buy...at least not seriously.
• I've posted a separate thread about expat living in a modest middle-class Dominican-majority community...which actually has been rather pleasant.

What is noteworthy to us in 2023 compared to 2022, is that the rental prices of Airbnb units have dropped SIGNIFICANTLY year-over-year.

• The lower half of the rental market is down modestly...perhaps 10%.
• But the upper half units -- not including any of the ultra-luxury units, since we don't travel in those circles -- are generally offering discounts of 15% to 32% compared to last year...when it seemed like the nicer units were going faster than we could request the bookings on Airbnb.
• This year, it's VERY easy to find very nice units, even on short notice, with significant discounts.

That's the rental market as we see it in 2023, What I don't know is how that is translating to the sales market.

• But, I would guess that we're one obvious indicator of the market re-positioning...as we were in the market in Spring 2022 and felt that the price increases has been absolutely overdone and were at unsustainable levels.
• So, we simply withdrew from the market...as I suspect many others have, as well.
• And meanwhile, in the US and Canada, the RE markets are definitely on a steep decline.
• I've heard long-time, experienced Dominican RE agents state that slowdowns in DR sales occur 9-18 months after the North American markets cool down.
• And other Dominican agents swear on Bibles that there is absolutely no connection between NA and DR RE markets...and the DR is easily able to sustain an upward price trend, no matter what is happening in NA.
• I'm not seeing that at all...but hey, I could be wrong.

Personally, I'm thinking 2023 is a "hold your fire" period, and 2024 will be far more amenable to more favorable offers by buyers, because sellers will be finding they aren't getting the crazy over-asking price offers of 2022 any more.

I must, of course reserve the privilege of being absolutely, completely 100% wrong on that prediction.

• I'm old enough to have caught some major deals just before market explosions, making plenty of money...
• ...and also managed to buy some RE at top-dollar, only to have to live through several years of falling value/prices on that "sure-thing" property we bought when all the market indicators pointed upward!!
• Maybe I'm right, maybe I'm wrong. Time will tell. And we can stand to wait, either way.

Whichever way the rental and sales markets may trend...I hope each expat here on expat.com is able to find/create the living situation that works best for them.

Best,

Jim

ExpatRusher

@ExpatRusher thanks. I was thinking something very similar. Mortgage rates are a disaster across the globe now compared to the last couple of years. Cost of living crisis in NA and EU wouldnprobably have an impact on markets like DR. There seems to be lot of building as well. The only thing what supports prices better this time is the significant inflation. We did not have that in recent bubbles....

Jim, I Iike your suggestion. Please copy and paste the 2023 portion to a new thread honey!  Keeps it easy to find.  Others will weigh in! 

@mrbreal55

I would be interested to get information about your builder.