5 Reasons to Buy Dominican Republic Real Estate
The Dominican Republic is one of the few Caribbean real estate markets to have ridden a rollercoaster during the recent financial crisis but that this rollercoaster can be looked upon in a positive light. When the US economic crash crossed the Atlantic and then started to infect the world people stopped buying property abroad almost completely. But the Dominican Republic was one of the first to recover, and is now once again a strong market. Here are 5 reasons for the Pros column of purchasing real estate in the Dominican Republic.
1: Low Prices
Dominican Republic real estate is the cheapest in the Caribbean, but not cheap as in cheap and nasty; cheap as in fantastic real estate at low prices giving unparalleled levels of value for money.
2: Expansive Beachfront Bargains
Across the world, from the Mediterranean to the Caribbean to the Indian Ocean, beachfront real estate commands a premium, and if you can find the chance to buy you will have to be willing to pay through the nose. This is not the case in the young luxury market of the Dominican Republic; luxury beachfront real estate in a tropical paradise affordable for the many not the few.
3: Rising Tourism
Looking at the tourism figures from the Central Bank for the Dominican Republic for the last few years, we can see that tourism to the Dominican Republic did not crash during the financial crisis as it did in so many places around the world. Analysing the month of July as an example we can see that tourism was growing strongly up until 2009, from 2.13 million visitors in 2004, 2.30 million visitors in 2005, 2.56 million visitors in 2006, and then after a slight drop back to 2.50 in 2007, back up to 2.60 in 2008, but then back down to 2.53 in 2009. However, it then grew strongly again in 2010, with 2.61 million visitors.
We can also see it growing this year: last year Dominican Republic welcomed 1.55 million in April, and this year it welcomed 1.63 million, a growth of 5%.
4: Strong Rental Yields
Thus, tourism is rising much faster than the number of available units in the commercial sector, making it a real opportunity for private owners to achieve strong yields. At the height of the boom there were many opportunities to buy into resort developments and apart-hotel developments with strong guaranteed rental yields. While the guarantees may have dissipated, the opportunities to earn strong rental yields have not.
5: Long Term Capital Growth Potential
As has been said and described above, the Dominican Republic is a young tourism market and demand from foreigners to buy real estate is also a relatively new thing. Prices are low, tourism is growing, the economy is growing, and yields are good. As the economy grows stability improves, and the infrastructure is continually developed, thereby breeding further growth. This cycle is known to push up real estate values by a considerable amount over the long term.
Sabine Mertes offers real estate services with a focus on villas, farms, land and condos for sale on the north coast of the Dominican Republic
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