Dominican Republic Real Estate

First and foremost, while finding reasonably priced real estate is of importance to many, there are other considerations equally important as well. One such consideration is what I would call УIsland FeverФ. That is to say, many believe the stereotype of a typical Caribbean Island as a postage stamp sized location under the sun, and this is often the case with many islands. Aruba, Antigua, Tortola and others, (just to name a few) are indeed very nice islands, but chances are you can drive such an island completely and still be back in time for lunch. While this may be quaint and appealing for some, a good number of people often eventually feel confined or claustrophobic as a result. The Dominican Republic in contrast is located on the second largest island in the Caribbean, offering both high mountains with pine trees and ferns, plus beautiful white sand beaches all at the same time. Many have compared the land mass of size as being about or slightly larger than the US State of South Carolina. As an illustrative example, the drive from the modern metropolitan capital city of Santo Domingo (population 3.6 Million) to the North Coast town of Puerto Plata takes about 3 to 4 hours. The drive from Puerto Plata eastward to the Samana Peninsula takes an additional 4 hours. If you want to drive from Santo Domingo to the Punta Cana or Playa Bavaro area, figure on about 4 hours as well. So, if you want to see the country, pack either an overnight bag or lunch, depending how far you want to go.
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This of course leads us to the discussion of diversity, quality of life and other issues. If you want to live in the Caribbean, but still want the benefits of a city, then Santo Domingo or the second largest city of Santiago (population 1 Million) might be your choice. WhatТs in Santo Domingo and Santiago? Movie theaters showing recent releases one week after they open in New York or elsewhere (in English with Spanish subtitles), plus a variety of international restaurants as well (not to mention a variety of clubs and nightlife). For other activities and shopping, there are bowling alleys, art museums, orchestra and ballet, modern shopping malls, supermarkets stocked with a number of American and European brands, PriceMart, Radio Shack and other familar chain stores. Many major universities also, just in case you want to keep busy by studying for a medical degree at a cost of roughly US$1,000 per semester. Of course if your idea is to get away from it all, then you have the option of the highest mountain range in the Caribbean or miles of uninhabited beaches. If your ideal place involves having the best of both worlds, well Ц you can. Couple this with high interest tax-free US Dollar banking or other investments (current interest rates are up to 7% for US Dollar deposits, interest paid monthly) and online internet banking access, the appeal for many is not too hard to understand. In addition, three major international airports offer direct flights to New York, Miami, Philadelphia, Panama, Venezuela, Aruba, Spain, Holland, Germany, Martinique, and France (among other destinations).
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Now that you can understand why someone would consider the Dominican Republic, let us discuss the real estate market by starting with the nationТs capital, Santo Domingo de Guzman. Just as in the case of any growing city, Santo Domingo is expanding, primarily to the north and to the east (towards the airport). As a result, smart investors might want to buy inexpensive land on the fringes of the city and wait for the city to come to them. This is in fact when happened in places like Los Angeles, during the boom period of the 1950Тs to the 1970Тs. In fact, as of spring 2005, it is still possible to find 5,000 square foot home lots in a new residential housing project 20 minutes from the city center for the equivalent of US$20,000. Similarly, you can find other properties outside of a planned development, such as one-half acre parcel starting at the equivalent of US$25,000. So, the reasonably priced properties are out there, all within close distance to modern stores and conveniences. But while properties in the city center of Santo Domingo might still seem reasonable in comparison to North-American cities, such as Denver, Toronto, Seattle or Chicago the fact is that prices have come up. This in part has been a function of the economy and also demand (many Dominicans are now moving back from New York and elsewhere). As a result, the real bargains are to be found on the outskirts. As an example, new luxury 1,700 square foot (and up) apartments directly within the city can be purchased for about US$100,000 and up (2 or 3 bedrooms plus maidТs quarters, 24-hour doorman, intercom, off street parking, etc.). Small new homes in residential tract developments will start off at about US$75,000. However, as we stated, one can purchase a building lot within 15 minutes of the city for about US$20,000 and build what you like.