DOMINICAN REPUBLIC Trends and Developments Contributed by: John Seibel, Fernando P Henríquez, Adriana Paz, Francesca Molina and Gia Guerrero, Seibel Henríquez
I. The Dominican Republic as a Strategic Real Estate Investment Destination The Dominican Republic has firmly established itself as one of the most dynamic real estate and tour - ism markets in the Caribbean. With GDP growth of 5.1% in 2024 – making it the second fastest-growing economy in Latin America and the Caribbean – the country has posted four consecutive years of record- breaking foreign direct investment (FDI). FDI reached USD5,032.3 million by year-end – an 11.3% increase over the previous year. Over the past five years, FDI inflows have nearly doubled, reflecting the country’s political stability and investors’ confidence in its insti - tutional environment. The sectoral composition of FDI underscores the cen - tral role of tourism and real estate. Of total foreign investment in 2025, tourism accounted for 26.3%, fol - lowed by energy (23.8%), real estate (15.7%), com - merce and industry (10.5%), free trade zones (8.7%) and mining (6.7%). The real estate sector posted the highest relative growth in 2024, with 28.5% year-on- year expansion. Together, tourism and real estate cap - tured more than 40% of FDI inflows, confirming real estate development as one of the primary engines of the Dominican economy. Tourism has been, and continues to be, a fundamen - tal catalyst for this growth. In 2025, the country wel - comed 11.6 million visitors and generated tourism revenues of USD11,318.5 million. This sustained flow of visitors has stimulated a wide range of real estate development: from hotel and residential resort com - plexes to mixed-use projects combining hospitality, retail and residential components. Destinations such as Punta Cana, La Romana, Miches and Pedernales have seen significant growth, reflecting a State strat - egy aimed at diversifying the tourism offering beyond traditional poles. Real estate investment in the Dominican Republic, however, extends well beyond the tourism sector. The market has undergone significant diversification in the types of projects attracting foreign and domestic capi - tal. Residential developments in urban centres such as Santo Domingo and Santiago respond to a growing middle class and demand from the Dominican dias - pora. Industrial and logistics projects linked to the free
trade zone regime – which currently hosts 843 compa - nies with cumulative investment of USD7,735.7 million – have multiplied, driven by nearshoring trends and the country’s strategic geographic position as a Car - ibbean connectivity hub. Commercial developments, distribution centres and industrial parks complete an increasingly sophisticated real estate ecosystem. The investor profile is equally diverse. During 2020– 2025, the United States led FDI inflows at 32.9%, fol - lowed by Spain at 13.7%. Together, these two coun - tries represented nearly half of all foreign investment. They are joined by flows from Canada and Mexico, and by international investment funds attracted by gross rental yields averaging 7.12% nationally – reaching up to 8–10% in high-demand areas such as Santo Domingo and Punta Cana – and by annual asset appreciation estimated between 5% and 15% in luxury tourism destinations, based on market data compiled by the Global Property Guide and industry sources. The Dominican legal framework actively supports this participation. Foreign nationals enjoy the same prop - erty rights as Dominican citizens, and Law No 16-95 on Foreign Investment guarantees the right to repat - riate invested capital and profits in freely convertible currency, subject to applicable tax obligations. This assurance is a material consideration for international investors evaluating exit options and reinforces the country’s competitiveness as a regional investment destination. This dynamism has been further strengthened by a deliberate public policy of attracting investment. The Dominican State has deployed incentive regimes – from CONFOTUR to free trade zones, border devel - opment and real estate trusts – that offer significant tax benefits and directly influence project structuring. These frameworks, examined below, are fundamental to the financial and legal viability of investments. That said, the opportunities offered by the Dominican real estate market coexist with a legal and institutional complexity that should not be underestimated. The coexistence of multiple legal regimes, the particulari - ties of the title registration and cadastral system, and the progressive implementation of new regulations –
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