He believes the business has entered a stage of maturity
By Paola Solis
El Inmobiliario
SANTO DOMINGO. –For Francisco Irizarry, CEO of Yellowkey Rentals, the short-term rental market in the Dominican Republic has entered a phase of maturity, whose challenge now is to raise the quality of service and professionalize management to maintain competitiveness.
Regarding what has happened recently in Spain, the real estate agent, with more than 100 properties under his management, made a call to avoid restrictive regulations that affect investment.
"Regulation must be smart and not restrictive; it must protect communities without scaring away investment or affecting the dynamics of tourism.".
Francisco Irizarry. (EXTERNAL SOURCE).
According to Irizarry, well-designed legislation would allow for differentiation between formal and informal operators, thus raising the standard of service. “Regulation is not only necessary, it’s beneficial. It helps filter the market, raise quality, and protect guests. It also allows us to distinguish between professional operators and makeshift properties. This strengthens the country’s image and improves the return on investment for those who do things right,” he stated.
This week in Spain, authorities ordered the removal of nearly 66,000 illegal Airbnb listings due to the use of fraudulent licenses and a lack of transparency. When asked if similar measures could be implemented in the Dominican Republic, Irizarry stated in an interview with El Inmobiliariothat “yes, they could inspire certain measures here, but it’s crucial that they be adapted to the Dominican context.”.
He argued that the Dominican short-term rental market "remains active and with great potential," although it has already entered a phase of maturity.
“Short-term rentals are no longer a novelty; they have become a real investment and income option. The challenge now is to raise the quality of service and professionalize management to maintain competitiveness,” he said.
A market in transformation
The specialist points out that the Dominican short-term rental market continues to grow, but with a trend toward specialization. “Some buildings are limiting their use to short-term rentals, which is pushing many properties back toward long-term or family rentals. That's positive, because it helps to balance the supply,” he explained.
Regarding a possible saturation, Irizarry acknowledged that this is already being felt, especially in very active destinations, although he believes that the market itself is correcting this phenomenon.
“With the adjustments many residential buildings are making, the inventory will be streamlined. This will concentrate the supply on projects truly designed for Airbnb, improve prices, raise quality, and bring greater stability to the market,” he added.
Investor confidence
Finally, Irizarry cautioned that while regulation is essential, care must be taken not to discourage investment. “The key is finding the balance. If investor confidence is lost, construction stops, and that directly impacts the economy,” he pointed out.
