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Home > Investments > When international confidence drives greater appetite for real estate investment

When international confidence fuels greater appetite for real estate investment

SANTO DOMINGO. – The Dominican real estate market is beginning to more directly reflect the signals of confidence that international financial markets have been sending about the country's economy, creating a favorable environment for attracting capital to residential, tourism, and mixed-use projects in the short and medium term.

Financing conditions are improving and interest in real assets is increasing, particularly in sectors linked to tourism, housing and urban infrastructure, thanks to the positive perception of the country's sovereign risk, along with sustained access to international capital markets.

FDI and weight of key sectors

Foreign Direct Investment (FDI) in the Dominican Republic closed 2025 at US$5,032.3 million , an increase of 11.3% compared to the previous year, according to the Central Bank, distributed between the tourism sector, with 26.3% of FDI flows and energy with 23.8%, reflecting the continued strong attraction of capital towards productive activities.

For its part, the real estate sector, closely linked to the dynamism of tourism and residential and mixed developments, represented about 15.7% of the total FDI received in 2025 , strengthening its position as one of the most relevant destinations for foreign capital in the country.

A sectoral pattern that places the real estate market as one of the most important recipients of foreign investment, behind tourism and energy, and reflects how global capital is increasingly entering long-term projects that combine residential, tourist and service uses.

Signs and certainty

The positive perception of the Dominican economy by the markets, evidenced by successful sovereign debt placement operations and relatively contained risk differentials, has contributed to creating a climate of certainty that facilitates both the arrival of FDI and the structuring of financing for real estate projects.

An example of this is the placement of US$1.6 billion in ten-year sovereign bonds, with demand exceeding three times the amount offered, a sign that is usually interpreted as support for macroeconomic stability and fiscal management.

Indicators such as JP Morgan's Emerging Markets Bond Index (EMBI) have shown that the Dominican Republic trades within relatively contained spread ranges compared to other countries with similar ratings, suggesting a moderate perception of risk within the universe of emerging economies

From the financial to the tangible

For the real estate market, this financial environment has concrete implications: a lower perceived risk in the country tends to facilitate more competitive financing conditions for investment projects, expand access to external capital, and increase the willingness of international investors to participate in long-term developments.

In addition to FDI flows, the tourism sector broke visitor records in 2025 , which has fueled demand for new tourism-related real estate products, such as resorts, holiday residences and mixed uses in destinations of high international appeal.

These investment flows do not respond solely to the specific attractiveness of certain projects, but to a broad interpretation of the country's stability, its growth prospects, and the predictability of its macroeconomic environment.

In this sense, the relationship between financial markets and real assets functions as a circuit: the confidence expressed in the purchase of sovereign debt improves the perception of country risk, this perception favors the arrival of productive capital, and this capital finds in the real estate sector one of the main vehicles for channeling it.

Trends for the sector

For the Dominican real estate sector, this scenario implies several key trends:

  • Greater interest from international investors in large-scale projects.
  • Better conditions for structuring financing.
  • Increased capital allocated to residential, tourist and mixed developments.
  • Gradual reduction of perceived risk in local assets, reinforced by the macroeconomic position.

Taken together, the signals coming from the financial markets, combined with FDI flows and the dynamism of tourism, are shaping an environment that positions the Dominican real estate market as one of the main recipients of capital in the coming years, within a medium and long-term investment logic.

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Solangel Valdez
Solangel Valdez
Journalist, photographer, and public relations specialist. Aspiring writer, reader, cook, and wanderer.
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