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Why does capital continue to flow into the Dominican real estate market?

The latest data from Global Property Guide shows that the country maintains one of the highest rental yields in Latin America, while foreign investment and construction continue to grow

SANTO DOMINGO. – The Dominican Republic ranks among the residential markets with the highest gross rental yields in Latin America, according to the May 2026 update from Global Property Guide, which reports that the country registers an average return of 8.53%, above Panama (6.94%), Mexico (6.06%), Brazil (5.71%), Uruguay (5.03%) and Chile (4.81%).

The indicator measures the relationship between the value of a property and the income it can generate through renting, and is one of the main references that investors use to evaluate a real estate asset.

Within the country, Santo Domingo leads with a performance of 9.09%, followed by Punta Cana-Bávaro with 7.98%, the two most attractive destinations for residential investment oriented towards rental.

Global Property Guide is a real estate analysis platform, founded in 2006, that compiles and publishes comparative data on prices, rental yields, and property regulations in more than 80 countries. Its reports are among the most consulted international references for investors and industry analysts.

Prices are rising, and so is FDI

Profitability isn't GPG's only argument; they also report that housing prices grew 5.05% in real terms over the past year, with a cumulative increase of 8.59% over three years. For investors, this means the asset not only offers good returns but also appreciates in value.

The Central Bank preliminarily reported that FDI attracted US$1,536.7 million between January and March 2026, a year-on-year increase of 6.4%. More than two-thirds, US$1,046.3 million, corresponded to new capital contributions, not reinvestment of profits.

In the sectoral distribution, tourism accounted for 22.5% of the flows, followed by energy (22.2%), mining (17.8%) and real estate development (14.8%), which positions this activity among the main recipients of foreign capital in the Dominican economy.

Construction sustains dynamism

The sector's performance is also reflected in construction activity. According to the Dominican Association of Housing Builders and Developers (Acoprovi), construction remains one of the sectors with the greatest impact on employment and the national economy, driven by both housing demand and the development of tourism and residential projects.

Taken together, these indicators offer a snapshot of the Dominican real estate market in 2026: on the one hand, rental yields remain among the highest in the region. On the other, asset prices continue to register real growth, and the real estate sector is among the top recipients of foreign direct investment.

High profitability, rising prices and foreign investment at quarterly highs: the data help explain the continued attractiveness of the market for local and international investors and the role it continues to play within the Dominican economy.

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