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Home Real Estate Market Dominican Real Estate Sector: 2025 Between Market Strength and Challenges...

Dominican real estate sector: 2025 between market strength and structural challenges

SANTO DOMINGO. – The Dominican Republic's real estate sector closes 2025 confirming its role as one of the most dynamic markets in the economy, sustained by active demand in the residential, tourism and investment segments, although conditioned by high interest rates, price pressures and a supply that did not always manage to respond with the required speed.

The year's balance and projections for 2026 point to a scenario of continued growth, with key adjustments and definitions.

During 2025, the behavior of the real estate market was marked by the persistence of demand, especially in consolidated urban areas such as Greater Santo Domingo and Santiago, as well as in tourist centers Punta Cana, Bávaro, Las Terrenas and Samaná.

In its year-end coverage, El Inmobiliario highlighted that market activity remained above pre-pandemic levels, driven by local buyers, Dominicans residing abroad, and foreign investors interested in residential and tourist properties.

From a macroeconomic perspective, the Central Bank (BCRD) acknowledged that 2025 was a year of more moderate economic growth than 2024, but stressed that the country's fundamentals remain solid.

The governor of the Central Bank, Héctor Valdez Albizu, stated that the Dominican economy has the capacity to resume a faster pace of expansion, projecting growth of between 4% and 5% by 2026, supported by investment, tourism and domestic consumption, variables closely linked to the performance of the real estate market.

This environment allowed credit linked to real estate activities to continue growing.

Central Bank reports show a significant increase in the loan portfolio destined for real estate services and home acquisition during 2025, which would indicate that the intentions to invest in real estate have not stopped, although buyers are more selective today.

Prices, inventory and housing

One of the central elements of the analysis during 2025 was price behavior. El Inmobiliario documented sustained increases in sale and rental values ​​throughout the year, especially in well-located projects and properties linked to tourism and short-term rentals.

This behavior was closely related to persistent demand and limitations in inventory availability in certain market segments.

Affordable housing featured prominently in the sector debate. In its analysis titled “2026: The Year Affordable Housing Will Set a Record for Demand in the Dominican Republic,” El Inmobiliario noted that the accumulated housing deficit remains one of the market's main structural challenges.

Demand pressure on this segment has been constant, and its evolution will be crucial for the overall balance of the real estate market in the coming years.

While housing production is directly linked to the construction sector, the relative scarcity of available units directly impacts the real estate market, influencing prices, placement times, and accessibility for buyers.

Tourism and real estate investment

Tourism once again played a key role in the sector's performance during 2025. With record visitor arrival figures, the country continued to strengthen its appeal as a destination for real estate investment linked to second homes and holiday rentals.

This influx has sustained demand in traditional tourist areas and broadened interest towards new areas with development potential.

The combination of macroeconomic stability, legal framework and relative profitability kept the Dominican Republic among the most attractive real estate markets in the Caribbean, for both regional and international investors.

Outlook for 2026

Looking ahead to 2026, the outlook for the real estate sector is moderately positive, with expectations of continued growth, albeit at a more balanced pace.

Next year will be key to assessing the market's ability to respond to pent-up demand, especially for affordable housing, and to adapt to a financial environment that will continue to demand greater efficiency and planning.

The balance between demand, supply, and financing will determine whether the market manages to strengthen its growth or faces greater tensions.

The Central Bank's projections on the Dominican economy reinforce a favorable scenario for real estate investment, provided that macroeconomic stability is maintained and progress is made in structural improvements that facilitate access to financing and the formalization of projects.

A resilient and demanding market

Although 2025 confirmed the strength of the Dominican real estate sector, it also revealed structural challenges related to prices, inventory, and access to housing.

As El Inmobiliario has emphasized in its editorial analyses, the sector shows no signs of exhaustion, but it does require strategic decisions and coordination between public and private actors to sustain its role as one of the pillars of the Dominican economy.

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Solangel Valdez
Solangel Valdez
Journalist, photographer, and public relations specialist. Aspiring writer, reader, cook, and wanderer.
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