The Caribbean has always been an enviable destination for paradise vacations, but it also offers an excellent opportunity to invest in property. Whether for vacation…
The Dominican Republic enjoys stability that few other island nations possess. Combine that with its beautiful beaches, breathtaking mountainsides, and welcoming people, and you’ve got an unbeatable investment environment. The following are just 5 reasons why the Dominican Republic, and the Punta Cana area specifically, represent the class of the Caribbean.
1. It’s the Fastest Growing Economy in Latin America
Over the past 25 years, the Dominican Republic (DR) has experienced a remarkable period of robust economic growth. The economy continued its rapid expansion in the years leading up to the COVID-19 pandemic, and between 2015 and 2019 the DR’s annual GDP growth rate averaged 6.1%. Tourism, remittances, foreign direct investment, mining revenues, free-trade zones, and telecommunications have helped make the DR one of the fastest-growing economies in Latin America and the Caribbean (LAC) region.
Over the past decade, economic growth in the DR has substantially reduced poverty rates and supported the expansion of the middle class. The country is on track to realize its ambition of achieving high-income status by 2030.
2. Tourism, Tourism, Tourism
Tourism in the Dominican Republic is an important sector of the country’s economy. More than 6 million tourists visit the Dominican Republic every year, making it the most popular tourist destination in the Caribbean and putting it in the top 5 overall in the Americas. The tourism industry accounts for 11.6% of the nation’s GDP and is a particularly important source of revenue in coastal areas of the country. The nation’s tropical climate, white sand beaches, diverse mountainous landscape, and colonial history attract visitors from around the world.
Aside from its idyllic beaches, it’s one of the most geographically diverse nations in the region, the Dominican Republic is home to Pico Duarte, the Caribbean’s tallest mountain peak, and Lake Enriquillo, its largest lake, and lowest elevation. The earliest cathedral, castle, monastery, and fortress built in all of the Americas is located in Santo Domingo’s Colonial Zone, an area declared as a UNESCO World Heritage Site.
3. High Returns on Investments
Thanks to its growing tourism appeal, the rental business in The Dominican Republic is very lucrative, especially in beach towns like Punta Cana and Bavaro. A good investment property located not too far away from the beach or with breathtaking panoramic views will guarantee benefit from high occupation and rental rates, ensuring strong returns on investment, between 6% and 12% yearly for the best earners. The average ROI from rentals is 8% per year.
The high season extends from December 15 to April 30. During the high season, rental rates are usually up 40%-50% and occupation rates are between 75% and 90%.
Christmas, New Eve, and Eastern Week are the busiest times in terms of tourism. Rental rates then usually go up 100% to 200% as most rental properties are rented.
Mid Season extends from July 1st to August 30. During that period occupational rates are usually between 55% and 80%.
Low Season extends from May 1st until June 29, and from September 15 to November 30. The occupation rate during the low season is usually between 35% and 60%. As you can see, it’s always busy, even in uncertain times.
4. Good Infrastructure (Roads, Hospitals, Airports, Hotels…)
Over the past 20 years, The Dominican Republic has significantly improved and invested in its infrastructures in large cities and in the tourist areas like Punta Cana. These areas now benefit from private hospitals, international schools, an electricity grid, and brand-new roads.
5. Perfect Weather
The Dominican Republic enjoys a subtropical climate. Average temperatures fluctuate between 20°C / 68°F during the winter and 31°C / 88°F in the summer.
The waters are always turquoise and calm and the ocean breeze is always in the air. There are few certainties in life, but perfect weather in the Dominican Republic is one of them.
To find out more about investing in paradise, reach out to us via website or call, and we’ll be sure to guide you further on a decision you will never regret.