DOMINICAN REPUBLIC Law and Practice Contributed by: Fabio Guzmán Ariza, Julio Brea Guzmán, Alfredo Guzmán Saladín and César Calderón, Guzmán Ariza
1.2 Main Market Trends and Deals Market Trends
in foreign property investors, which has been push - ing up demand. There is also an increasing demand for housing from the local middle class, driven by economic growth and improved access to financing. In terms of real estate as an investment, there is a noticeable trend towards buying properties for rental income, particularly in tourist-heavy areas. Properties such as beach-front villas, apartments in popular tour - ist destinations, and properties near major attractions are in high demand among investors. Areas with high tourist traffic, like Punta Cana, Puerto Plata, and parts of Santo Domingo, typically see a robust demand for short-term rentals. These regions cater to tourists and seasonal visitors who prefer renting over buying, lead - ing to a vibrant rental market. Another trend is the increasing popularity of luxury properties. The Dominican Republic has become a hot spot for wealthy individuals looking for high-end vaca - tion homes and investment properties. The volume of luxury property transactions has been rising strongly since the end of the pandemic. Eco-friendly real estate and government policies There is also a growing trend for producing eco-friend - ly real estate. Many developers are now incorporating sustainable design features into their projects, such as solar panels, rainwater harvesting systems and green roofs, making them more appealing to environmentally conscious buyers. Regarding government policies in 2024, areas of focus include further development of infrastructure, like road expansions and airport upgrades, enhancing tourism facilities, and continuing to improve the legal frame - work for property transactions. Disruptive Technologies Disruptive technologies have transformed every step of the real estate value chain, providing massive opportunities for the industry. The technologies with the highest rate of adoption include augmented reality (AR), drones and artificial intelligence (AI), along with instant communication channels and social media, big data and the 5G network. So far, the fastest adoption has been in AR and drones for surveying properties and neighbourhoods and for
The main trends in the real estate market in the Dominican Republic continue to be the development of important projects in the tourism sector. Many well- known international developers have created multiple projects, some of which are already operational, in the areas of Punta Cana, Bani, Miches, Puerta Plata, Santo Domingo and the south-west provinces of Ped - ernales, Barahona and Peravia. A growing trend has been the use of public-private partnerships to develop new regions for tourism such as the development of the south-western area of the country, Cabo Rojo and Bahia de las Aguilas in Pedernales, which are virgin beaches. This will be an eco-friendly development that will include hotels and residential developments. There has also been Ciudad Juan Bosch, a real estate development of more than 12,000 homes, to which the government contributed land and infrastructure. The private sector is developing low-cost housing for low-income families in the city of Santo Domingo. Tourism and luxury properties Recently, local promoters, hotel operators and prominent landowners from the eastern region of the Dominican Republic created the Hotel and Tourism Association of El Seibo and Miches (PROMICHES), with the aim of positioning Miches as an environ - mentally responsible and inclusive tourist destina - tion. PROMICHES will promote the development and growth of innovative and socially responsible busi - nesses that protect and enhance the environmental and cultural diversity of the area, aimed at diversifying the country’s tourism offering. Its 13 members repre - sent projected investments totalling USD1.18 billion, as well as developments that will bring 3,400 new hotel rooms and 1,400 residential rooms to Miches, and the required infrastructure necessary to maintain its operations. One of the most notable real estate trends in the Dominican Republic is the effect of the booming tour - ism industry on the market, which is driving demand for both commercial and residential properties, par - ticularly in coastal areas. Another factor is the surge
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