What is the Punta Cana Real Estate Market Like?
It's the fastest growing market in the Caribbean! Post-construction property rates are appreciating better than the average international market and pre-construction properties are impressively appreciating at about 30% per year.
How Big Is Punta Cana? What is it like?
Punta Cana is growing rapidly. Today, the area has an estimated population of 100,000. The region covers approximately 1,100 acres and is considered to be more like a collection of small communities rather than a city. Currently there are over 60 all-inclusive resorts and numerous residential communities stretched over 20 miles of beautiful beaches. For info on the local people and expat population, check out Why Buy in Punta Cana.
Reliable Realty DR only promotes properties within the most popular and reputable communities in the Punta Cana area. This includes El Cortecito, Los Corales, Bavaro, White Sands and Punta Cana, and the residential communities of Cocotal Golf and Country Club, Punta Cana Village and Resort, and Iberostate Golf & Beach and Country Club. Click here for Punta Cana Area Resources.
What’s the average cost of properties in Punta Cana?
Why is it important to use a trusted real estate agency?
Real estate agents in the Dominican Republic are not yet required to be licensed and are not all regulated by the government. Licensed agents are typically accoutable to their licensing country for their actions and are held to a higher standard of ethics. It is best to seek the assistance of a reputable agency and licensed agent who is knowledgeable about real estate laws in your home country and the Dominican Republic. For more, visit Why Choose Reliable Realty DR.
Do foreigners need to be residents of the DR to buy properties?
There are no restrictions on foreigners buying properties in the Dominican Republic. You receive a freehold title in your name, and have the same rights as any landowner in the Dominican Republic. Foreigners do not need to be residents (although there are government incentives for being one). Because this area has grown so fast, it may take up to 18 months to receive an actual title. Instead, your legalized purchase agreement is honored as proof of ownership until your actual individual title is processed and received. For more, visit DR Real Estate Law and Process.
What is the procedure for buying properties in the DR?
The process isn't difficult when you use a reputable relator and attorney. Ensure that your relator will guide you in selecting reputable attorneys, title companies, insurance providers and other legal services needed.
When working with Reliable Realthy DR, once we've shown you a property that you want to purchase, we help you write the initial offer/contract. It's only a two-page document that highlights the specific details of the transaction (i.e name, property location, offer price, terms, initial earnest deposit). For new developments, there may also be a separation fee of anywhere from US$1,000 to to 30% of the purchase price, depending on the developer and the stage of the project. Upon acceptance of your offer from the seller, a formal contract is drawn up by our attorney services. Per dominican Law, this contract will be in Spanish, but we provide a translated English version for a minimal fee. Typically, a second deposit is also expected. After the contract has been satisfied as outlined in the agreement, you simply continue paying for your property according to your agreement. For more on the process, visit DR Real Estate Law and Process.
Can I get financing there?
With a minimum credit score of 650 you may be able to obtain a 80% loan-to-value for around 8.5% APR. See Nine Ways to Buy in the DR.
What if I want to rent out my property? Can I make enough income to cover my cost of ownership?
Many buyers rent out their properties to vacationers and long-term renters. This income may cover a good portion of your costs of ownership. For more information, check out Nine Ways to Buy in the Dominican Republic and Why Choose Reliable Property Management.
What can I expect to pay in property taxes?
This is one of the best incentives offered by the Dominican Government to foreign investors. Tax Abatement law #151 basically states that you are exempt from paying property taxes on the first $150,000 purchase, and any remaining tax is approximately 1% on the balance each year for the length of ownership. However, properties must have a qualifying status and each property may have some variations – your contracted Dominican attorney can explain your particular situation in more detail. You may even qualify for the retirement incentive, with would bring your property tax rate to only half (0.5%). For more, visit DR Real Estate Law and Process.
What taxes, fees and closing costs are involved when acquiring property in the DR?
There are very few fees involved with buying a property in the DR. On average, the one-time fee is apporximately 5% of the property purchase price. This fee covers attorney fees, title registration, and government transfer tax. For more, visit DR Real Estate Law and Process.
What about property insurance?
Homeowners insurance can be purchased for around .8% of the purchase price (including tax). It covers fire, electronic devices, and liability. You can purchase property insurance at any stage of construction from raw land to a finished project.
Can I hold title to property? Is there title insurance available?
Yes. There are several reputable title companies in the DR. One of the largest US title companies, Stewart Title, has an office in the Punta Cana / Bavaro area. They have been established in the DR for many years and provide title and closing services, as well as dependable title insurance and escrow services. For more, visit DR Real Estate Law and Process.
What about condo fees?
Condo fees vary by complex community. Generally they average around US$80-150 per month for a one bedroom, and US$120-250 per month for a two bedroom. The fees include maintenance of the grounds, 24-hour security, water, maintenance of the beach, and maintenance of and access to ammenities such as tennis courts, pools, and fitness centers.
What about bequeathing real estate?
There are no restrictions on foreigners bequeathing titles of real property in the DR. Inheritance taxes have been recently lowered to 3% of the appraised value of the estate. If the beneficiary resides outside the DR, inheritance taxes are 4.5%. For more, visit DR Real Estate Law and Process.
Can I become a resident of the DR and still retain citizenship in my home country?
You can have dual citizenship with little or no restrictions (check with your home country). For more on acquiring residency, visit Relocation and Residency Guides.
Is it safe there?
Yes. See "The Low Crime Rates" in Why Buy in Punta Cana
Is Punta Cana very developed in terms of infrastructure, technology, etc?
See "The Rapidly Growing Infrastructure" in Why Buy in Punta Cana.
What are the hospitals and healthcare like? Is it affordable?
How do I find the right property and community?
Check out Finding the Right Property and Community
How can I know if buying in the DR is a sound financial investment?
Check out Punta Cana Investment Resources, Reliable Realty DR in the Media, and read about how you can earn income on your property in Nine Ways to Buy in the DR