They pointed out that the country ranks as the second nation in Latin America with the highest proportion of households living in rented accommodation.
SANTO DOMINGO.-The boom in tourism and foreign investment has driven up demand for housing in the Dominican Republic, with Santo Domingo and Punta Cana leading the real estate market.
This was revealed in an analysis shared by Corotos, where they specified that the real estate sector in the Dominican Republic has undergone a transformation in recent years.
“Among the most influential factors are the sustained increase in prices, changes in leasing and purchasing habits, the boom in foreign investment, and the effects of state legislation on the sector,” they stated in a press release.
According to them, this evolution has generated a dynamic and complex scenario that forces those involved in this sector, whether as owners, investors or tenants, to rethink their strategies.
According to the BBVA Research report “Real Estate Situation”, the country ranks as the second nation in Latin America with the highest proportion of households living in rented accommodation.
This place is only surpassed by Colombia, where more than 40% of the population are renters, as the study indicates.
“Many owners have chosen to dedicate their properties to short-term rentals, taking advantage of the constant influx of visitors who prefer tourist apartments in areas such as Punta Cana and Santo Domingo,” they said.
They pointed out that, between 2018 and 2024, rental values for all types of properties experienced considerable increases, as indicated by the analysis carried out by Corotos.
As an example, they stated that “apartments went from an average rent of RD$18,584 in 2018 to RD$50,222 in 2024, which represents an increase of almost 170%.”.
In the case of houses, they stated that the increase was even more pronounced, from RD$17,613 to RD$60,862, a rise of 245%, with a particularly accelerated peak between 2019 and 2022 that subsequently stabilized.
“Despite these overall increases, not all categories evolved in the same way. Rooms in shared housing, for example, showed a more moderate growth of 65%, while commercial and office spaces rose on average by 195%,” they commented.
Furthermore, the study indicates that luxury penthouses registered an increase of 119%, which demonstrates the dynamism of the high-end segment, fueled largely by international demand.
According to Mauricio Hernández-Monsalve, author of the BBVA report, the rise in prices and the reduction in the availability of used properties have also influenced the configuration of the market.
“This phenomenon highlights a market with demand that far exceeds the available supply, which has made residential rentals an increasingly lucrative alternative for investors looking to diversify their portfolios and take advantage of high rates of return,” they concluded.
They explained that, as a result, the hierarchy in demand for different types of housing has changed. “Although apartments remain the most requested in terms of volume, in 2024 demand increased for houses and, especially, for penthouses.”.
This preference is explained by both the interest of foreign investors and Dominicans with high purchasing power who are looking for more exclusive properties.
Likewise, the office and commercial premises market gained prominence in cities such as Santo Domingo, Santiago and La Romana, in line with the expansion of new ventures and business centers.
However, in contrast to the above, shared rooms remain the least dynamic category, although with sustained growth due to the mobility of young professionals and students.
Limited supply and transforming demand
Housing supply in the Dominican Republic continues to fall short of the growing demand, in a scenario marked by the rising cost of materials, state slowness, and new demands for housing adapted to the post-pandemic lifestyle.
On the other hand, representatives from Corotos highlighted the main challenges the market is currently facing.
“Despite the State’s efforts, the construction of new housing has not been enough to meet the growing demand,” they stated.
This situation is compounded, they pointed out, by accelerated urbanization and the growing demand for homes with multifunctional spaces, adapted to teleworking and the post-COVID-19 lifestyle.
“These new needs have further narrowed the gap between supply and demand, although they have also opened up opportunities for developers who are committed to more innovative and sustainable projects,” they revealed.
