The challenge will be to ensure that the participation of external capital not only boosts prices and returns, but also contributes to a more balanced real estate development, capable of meeting the needs of a population with limited access to housing.
SANTO DOMINGO. – In 2025 , the Dominican real estate market received a strong influence from foreign capital , a determining factor in both price dynamics and the orientation of housing supply.
This phenomenon, documented by international financial analysis portals and supported by official figures, has brought liquidity and dynamism to the sector, but has also deepened structural imbalances in access to housing.
According to the November 2025 update of Global Property Guide (GPG), the international portal specializing in comparative analysis of real estate markets, residential prices in the Dominican Republic registered a nominal year-on-year variation of 10.64%, placing the country among the markets with the highest revaluation in Latin America.
This is in addition to an average gross rental yield of 9.08% in Santo Domingo, according to GPG's Rental Yields database for September 2025.
These indicators explain the growing interest of international investors, who find in the country an attractive combination of high rental yields , sustained asset appreciation and relative macroeconomic stability, compared to other markets in the region.
FDI and its link with the real estate sector
Foreign participation in the real estate market is part of a broader context of Foreign Direct Investment (FDI) flows. According to preliminary figures from the Central Bank of the Dominican Republic (BCRD), FDI reached US$2,892.8 million in the first half of 2025, representing a year-on-year growth of 15.3%.
Official projections indicate that the country could end the year with more than US$4.8 billion in foreign investment, one of the highest levels in its recent history.
Various sector analyses, including specialized publications such as Inmobiliario.do (2025), indicate that the real estate and tourism sectors are among the main recipients of these flows, concentrating a relevant portion of the investment destined for residential, tourist and mixed-use projects.
Impact on supply
The evidence compiled by Global Property Guide shows that much of the new housing, especially in urban vertical developments and tourist projects, is geared towards higher-income segments.
Much of the new residential supply is geared towards middle-high and high segments, favoring investors with high liquidity and purchasing power without local mortgage financing.
Although the tax regulations in force since May 2025 limit the use of cash to RD$500,000 per transaction, these investors usually channel their resources through bank transfers and other traceable means of payment, which allows them to operate quickly in a market with limited supply.
This pattern is reinforced by the recent performance of the construction sector. According to the Central Bank, the value added of this segment registered a year-on-year contraction during the first half of 2025, reflecting a slowdown in the execution of new projects.
In this context, the fewer new units there are, the greater the pressure on the prices of existing homes and rents, especially in central and high-demand areas.
Consistency with international analyses
A sector report released in September 2025 through GlobeNewswire, a US-based global platform for distributing financial and corporate reports, reinforces this interpretation.
The study projects that the production of the construction sector in the Dominican Republic will close 2025 with an estimated contraction of -1.2%, despite the slowdown in inflation and the stabilization of material prices.
The report warns that, although there are signs of recovery in the medium term, the weakness of construction in the short term limits the market's ability to respond to increased real estate demand, particularly in the affordable housing segments.
Foreign capital: dynamism and polarization
The growing presence of foreign investors has had mixed effects. On the one hand, it has provided liquidity, market depth, and a more professional approach to investment, helping to sustain real estate activity in an environment of slowing construction.
On the other hand, it has reinforced a polarization of supply towards middle-high and high segment housing, widening the gap between market prices and the purchasing power of local households.
This mismatch is also reflected in the rental market, where competition for well-located units has driven up rents and reduced residential mobility, particularly for middle-income families.
Data from Global Property Guide, figures from the Central Bank, and sector analyses published by GlobeNewswire all agree that the country remains an attractive destination for foreign real estate investors.
However, this appeal is based on a market under strain due to a shortage of new supply and the orientation of investment towards higher-profit segments.
The challenge for the coming years will be to ensure that the participation of external capital not only boosts prices and returns, but also contributes to a more balanced real estate development, capable of meeting the housing needs of a population with limited access.
