A small sample of several construction companies surveyed reveals the high percentage of homes purchased through this sales method in the Dominican Republic. Specifically, Rodos sells 100% of its projects off-plan, Crisfer 95%, Inversiones SBDS 100%, Palmetto 95%, and JPrez 70%. In Santiago, Élite Ingeniería reports having sold 60% of its units before construction even begins.
SANTO DOMINGO.- Buying a home off-plan has become a very popular practice for families, individuals and investors who do not have sufficient resources and find in this model a convenient alternative to acquire a property.
A floor plan is defined as a two-dimensional, scaled representation of a property's layout, dimensions, and other key features. It's a solution currently offered by the real estate market and used by thousands of buyers.
A small sample of surveys conducted with various construction companies reveals the high percentage of homes purchased through this sales method in the Dominican Republic. Specifically, Rodos sells 100% of its projects off-plan, Crisfer 95%, Inversiones SBDS 100%, Palmetto 95%, and JPrez 70%.
In Santiago, Élite Ingeniería states that it has already sold 60% of its units before construction has even begun. “Generally, buying off-plan offers a better purchase price, more time to complete the down payment, and financing a smaller portion; in addition to the possibility of making changes to the design or materials,” says engineer Pedro Oguis Jiménez, a representative of the brand.
Soribel Castillo, real estate advisor for Elite House, and engineer Simón Durán from the construction company Inversiones SBDS, also extensively mention the advantages of this home acquisition plan.
“The advantages of buying a property off-plan are that it allows you to acquire a property with a minimum reservation of 10% for the purpose of signing the contract; before signing you have the opportunity to reserve with 500, 1, 2 thousand or 3 thousand dollars depending on the project and you have up to 30 days for the signing,” Castillo states.
He adds that this method offers the client the ease of paying the down payment in a comfortable period, "you have the construction time of the project in your favor to adjust your monthly down payment payments for one, two or three years depending on the project plan.".
Furthermore, she says, monthly payments become savings that require consistency and responsibility. "You earn much more than if you saved in a bank account at the end of the same period," the advisor maintains.
One benefit Castillo adds is that the construction company allows you to pay the down payment without interest during the waiting period for the full payment. “I see it as an interest-free mortgage on a property that is already considered your own.”.
Capital appreciation is one of the biggest advantages of this approach. “Buying off-plan means that by assuming the risk of the construction wait, the client gains capital appreciation that accumulates day by day as the project is built, the area develops, the local economy becomes more dynamic, and the project advances as a new product in the area. This generates market interest, and those who want to buy a completed property are willing to pay the current market value, the quality of the finishes, the attractive features of the development, and all the intangible benefits that the end buyer perceives,” explains the executive from Élite House.
This method—Castillo explains—allows you to acquire a financial asset that will generate passive income (income that doesn't require your work or physical presence). “If you decide to keep the property to make your investment profitable by renting it out on a short-term basis through the digital platforms preferred worldwide by foreigners and tourists visiting the Dominican Republic, as well as Dominicans residing both within and outside the country who come to the city for health reasons, this new health tourism market is increasingly driving real estate investment in our country, both in the city and in the beach and mountain tourist areas,” he maintains.
“Buying off-plan benefits you by allowing you to acquire a property that wouldn't be possible to acquire once it's ready, unless you have the initial savings or pre-approval for a bank loan,” he concludes.
Simón Durán of Inversiones SBDS, which is currently building an ambitious project in the eastern zone, lists the main advantages of buying off-plan:
– The customer has more time to complete the initial setup. A very high percentage of customers need time for this, and more than an advantage, it's a necessity for buyers.
-In times of price stability, there is a possibility of some capital gain on the property at the time of delivery, since units in plans are usually a little cheaper than those already finished.
-Other times they can, in some cases and in small projects, depending on the construction company, choose certain materials, such as colors for bathrooms, floors and kitchen.
He acknowledges, however, that for most customers, this modality represents a necessity rather than an advantage.
