The Dominican Republic is the second largest country in the Caribbean by area with 48,671 square kilometers and the third largest country of the Caribbean by population with an estimated 10.5 million people. The official language is Spanish, although English is widely spoken. The country GDP is 85.56 billion USD which makes it the largest and fastest economy in the Caribbean and fastest growing economy in Latin America.
The Dominican Republic is a country with 900 miles of ocean and the highest peak in the Caribbean (10,164 ft high), with good weather all year long -multiple climate zones-, very accessible with direct flights to/from Europe, the United States, Canada and Latin America, and a friendly environment. Foreigners and Dominicans have equal rights for buying any assets including property. There are tax incentives for tourism, mortgage market development and trusts, free trade zones for corporations and retirees’ benefits.
The Dominican Republic property market has been growing in the last decade. It represents one of the five sectors with the greatest participation in the economic growth of the country, representing 9.3% of the economy. There has been a robust tourism growth with an average annual growth of 5% in tourist arrivals since 2012. In 2019, 38.7 million non-resident foreigners visited the Dominican Republic. Even during the financial crisis of 2008-2009, the DR’s tourism sector remained stable thanks to its robust tourism and resilient housing market.
As the rest of the world, Covid-19 has had a negative impact in the real estate sector and in tourism in 2020. Most hotels closed during the estate of emergency which latest months, equaling 80,000 rooms approximately. The Dominican Republic has over 800 hotels, of which over 90% closed during the Covid-19 pandemic. On a positive side, the pandemic has reshaped people’s vision on housing, which has led to increased leasing in certain areas and real estate closings, especially in properties with green areas and open spaces.