"In the midst of the pandemic and in the second half, sales skyrocketed to 300%, and this year they remain the same, perhaps at 200%, with units of US$100 or less, the more expensive ones continue their slower path.".
SANTO DOMINGO.- Punta Cana, once reserved exclusively for high-end villas, has diversified its options and as its real estate market has been exploited, affordable housing projects have been introduced for a middle-class target audience who now have the opportunity to make investments and enjoy the most desirable paradise in the Caribbean.
Developers themselves have had to readjust their offerings and adapt to the market and its demands. Currently, housing projects priced under US$100,000 are proliferating and are the most sought after.
The study “Effective Housing Demand in Seven Cities of the Dominican Republic,” sponsored by the Association of Housing Builders and Developers (ACOPROVI) and the Center for Construction and Urban and Regional Development Studies (CENAC), conducted in July 2017, found that only 2.9% of households in Punta Cana-Bávaro had the capacity to purchase homes valued at more than 15 million pesos. At that time, the exchange rate was 48 pesos to the dollar.
The research defined effective demand as " households interested in purchasing a housing solution in the real estate market and who also have sufficient resources to pay the down payment and the necessary income to assume the monthly payment of the loan, in accordance with the regulations in force in the market for long-term housing financing in the banking system."
Willie Méndez Melo, of DeCanaan Punta Cana and DeCanann Real Estate, along with his wife María Y. Matos, has been selling properties in this tourist destination for 11 years and maintains that the market has had to adapt to demand. “An engineer who doesn't consult first won't survive. My opinion is that the entire country needs affordable housing, with lower costs and easier payment options,” he explains.
As with the entire real estate industry, the pandemic triggered a surge in demand for homes, and the East has felt it too. “During the height of the pandemic and in the second half of the year, sales skyrocketed by 300%, and this year they're still at about 200%, with units priced at US$100,000 or less. The more expensive ones are continuing their slower growth,” Melo points out.
In summary, he argues, there has been a very favorable response in Punta Cana regarding the demand for units for first homes or investment, with the diaspora taking the lion's share, while Dominican residents and foreigners remain a very important second group in 2021.
It states that 67.35% of buyers are Dominican (60% of that group do not live in the Dominican Republic); and 32.65% are foreigners (from Canada, the US, Puerto Rico, the Netherlands, Belgium, Russia, Spain, and Italy). The coral reefs are the area where the most properties are sold.
This Caribbean treasure is home to a diverse group of developers: 70% Dominican (50% traditional builders and those from other regions of the country), 20% natives of La Altagracia province, and 30% foreigners. More than 40 projects, ranging from high-end to mid-range and low-cost, are currently in development.
The benefits of Law 189-11 for the Development of the Mortgage Market and Trusts in the Dominican Republic have extended to this sector. In fact, low-cost housing is among the most in-demand, particularly for Airbnb, where the highest demand is for one- and two-bedroom properties.
