Some 36 companies, including Mudate, BC Real Estate, Mr Home, Tu Casa RD, Cabral Group, Cap Cana, Plusval, Premium Real Estate, Keller Williams, Remax, among others, have registered to participate in the Great Real Estate Show of Colombia.
SANTO DOMINGO.- Following the decline experienced by the Dominican construction sector since last year and taking advantage of the popularity of the Dominican Republic abroad, the country's main real estate agencies have launched a sales strategy to attract foreign capital interested in investing in properties on local land.
“Real estate companies have taken on the commitment, as a country, to the development of the sector because it is an area that represents an important arm in the economic and financial dynamic, in addition to the benefits that are being generated by going to seek that capital, those clients and making them loyal, because through the clientele that arrives come the referrals, which are the friends and family who are also motivated to invest,” explains Edgar Martínez, CEO of Xtriba Inmobiliaria.
Urban Group, Echenique Group, Tu CasaRD, Mr Home, Remax, ApartamentosRD, Plusval Dominicana, H y J Real Estate, Élite House, among others, are some of the real estate firms that have flown to foreign shores to present the real estate proposals that the Dominican Republic has to offer and attract investments for the sector.
For Alberto Bogaert, president of the Association of Real Estate Agents and Companies (AEI), this is a new and innovative trend that reflects the progress being made by high-level real estate agents and companies. “We can’t just sit back and wait for clients to come to us; we have to go out and find them and create these kinds of highly successful mechanisms,” he says.
For his part, Martínez highlights that the model attracts a significant economic flow, confidence in the Dominican financial system, in the legal system, in the real estate sector (as a guarantee for the buying and selling processes); from the entry of foreigners who generate foreign exchange movements, "because whoever owns property on Dominican soil comes once or twice a year.".
The president of the AEI (Association of Real Estate Agencies) asserts that the real estate agencies' action aligns with the excellent image and standing of the organization he represents in these markets. "Most agencies leverage the association to establish these initial contacts in these different markets.".
Bogaert says the trend has been so successful that, as a group, they were motivated to get the country considered as the guest of honor at the Gran Salón Inmobiliario de Bogotá, to be held next August, and give Dominican companies the opportunity to promote their properties in Colombia.
So far, some 36 companies have registered, including Mudate, BC Real Estate, Tu Casa RD, Cabral Group, Cap Cana, Plusval, Premium Real Estate, Keller Williams, Remax, among others, and "there is still room for real estate companies and developers who are encouraged to participate," says the president of the AEI.
“At AEI, we are very pleased with the success we are having. We hope there will be many positive results not only for the agencies and developers, but also for our country, which will receive a lot of foreign investment as a result of this fair,” Bogaert emphasizes.
Agencies have known how to take advantage of the moment
Another element that, according to Edgar Martínez, has contributed to the movement of agencies abroad is that the Dominican diaspora is investing heavily in the country through the purchase of real estate.
The architect also explains that the downturn experienced in the construction sector, which ended last year with barely symbolic growth, has allowed agencies to shift their focus to the international market.
“The process has largely been supported by purchases from people abroad, whether Dominicans in the diaspora or foreigners, who have liquidity to invest in projects for Airbnb or long-term rental properties,” says Martínez.
He argues that with the increase in real estate prices since last year, a portion of the Dominican population has been left without purchasing options due to a lack of ability to pay.
"All those target markets that produce in dollars, obviously buy, and in fact, the low-cost projects are not being bought to a large extent by the public they are initially aimed at, because they do not have the ability to pay, and many people from abroad are acquiring them for investment.".
Martínez adds that the benefits of international operations include forging alliances with other real estate agencies, citing his own company's agreements with agencies in Miami. He believes this, in turn, enhances client security through these established partnerships. "There's an extraterritorial interaction through these alliances that fosters confidence in the real estate sector and, consequently, investment.".
