DOMINICAN REPUBLIC Law and Practice Contributed by: Alfredo Guzmán Saladín, Fabio Guzmán Ariza and Julio Brea Guzmán, Guzmán Ariza
already operational, in the areas of Punta Cana, Bani, Miches, Puerta Plata, Santo Domingo and the southwest provinces of Pedernales, Bara - hona 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 southwestern area of the country, Cabo Rojo and Bahia de las Aguilas in Pedernales, which are virgin beaches. This will be an eco-friendly development which will include hotels and resi - dential 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 Mich - es (PROMICHES), with the aim of positioning Miches as an environmentally responsible and inclusive tourist destination. PROMICHES will promote the development and growth of inno - vative and socially responsible businesses that protect and enhance the environmental and cultural diversity of the area, aimed at diversify - ing the country’s tourism offering. Its 13 mem - bers represent projected investments totalling USD1.18 billion, as well as developments that will bring 3,400 new hotel rooms and 1,400 resi - dential rooms to Miches, and the required infra - structure necessary to maintain its operations. One of the most notable real estate trends in the Dominican Republic is the effect of the booming
tourism industry on the market, which is driv - ing demand for both commercial and residential properties, particularly in coastal areas. Another factor is the surge in foreign property investors, which has been pushing demand up. 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 notice - able trend towards buying properties for rental income, particularly in tourist-heavy areas. Prop - erties such as beach-front villas, apartments in popular tourist 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 tour - ists and seasonal visitors who prefer renting over buying, leading 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 look - ing for high-end vacation homes and investment properties. The volume of luxury property trans - actions 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- friendly 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 con - scious buyers. Regarding government policies in 2024, areas of focus include further development of infrastruc - ture, like road expansions and airport upgrades,
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