1) Investment – Purchasing Power
Smart investors, and those looking for a full or part-time vacation home are purchasing in Punta Cana & Bavaro for the impressive return on their investment. Whether through a resale or as an income property (servicing an array of vacationing tenants). The Dominican Republic offers some of the best real estate opportunities in the Caribbean. Properties are still very affordable, sustaining some of the best property values worldwide.
Purchasing Real Estate in the Punta Cana-Bavado (specifically the El Cortecito and Los Corales areas) and La Romana (45-minute drive from Punta Cana) offer exceptional investment opportunities. This is primarily because Punta Cana/ Bavaro are worldwide key tourist destinations with nearly 60 world-renowned all-inclusive resorts, 11 Championship Golf Courses (PGA Tours), affordable land (still) a 5-10-minute drive to the beach, plus numerous highly desirable residential condo and villa communities. This East Coast of the Dominican Republic has experienced continued international exposure with exceptional and continued GDP a since 2010, as well as impressive ROI’s for investments under $350,000 U.S. (properties by the beach leveraged as vacation rentals).
As a bonus, foreigners can buy and own real estate or other property in the Dominican Republic freehold (free and clear titled property with your name on the deed) without the need for residency. The one-time title transfer tax is well below the U.S. average and below the average of other Caribbean markets. The DR also offers many incentives to foreign investors, like property tax exemptions (typically purchases under $145,000 U.S.), and for some qualified NEW condo construction developments, a new government tax exemption offering called CONFOTUR; in summary, buyers of new (pre- under, or new construction condos) can benefit from exemtion of the one time 3% title transfer tax (based on the current IPI or assessed values), and exemption of the 1% property tax for purchases over approximately $145,000, guaranteed for 15 years. – separate page outlining this benefit coming soon.
The Punta Cana real estate market provides a strong and consistent long-term appreciation value. Foreclosures or short sales are rare because most foreigner purchased investment properties are purchased with cash, or Direct Owner Financing. Also, most properties on or near the beach are newer (2007-current) and distressed properties are extremely rare.
Punta Cana’s beaches are renowned for their soft-white sand, abundance of natural palm trees, and only 2-5 story buildings (cannot be higher than the tallest palm tree). Along with the vivid turquoise ocean waters, a consistent ocean breeze, and a coral reef barrier that keeps sharks, jelly fish, storm surges away from the shoreline.
Currently there are nearly 60 all-inclusive resorts and numerous residential communities stretched over 35 miles of beautiful beaches. (Uvero Alto to Cap Cana) (SLIDE SHOW COMING SOON)
It is almost always warm and sunny in Punta Cana, with average highs around 80 degrees Fahrenheit. It may rain at night and/ or in the morning, or sprinkle mid-day, but, with the exception of during the high peak of rainy season time (September – October) where it may rain 3 of 7 days a week for perhaps 20 minutes to 1 hour. The remaining months, rain lasts no more than 10-20 minutes. Enough to keep everything lush and green.
Ironically in September & October, the temperatures are just right, tourist traffic is lower, and prices of most everything are much better. Since the East Coast of the Dominican Republic (Punta Cana) is geographically protected by hurricanes, the locals are not as concerned, and in contrast look forward to a bit more rain for agricultural reasons.
4) Lower Hurricane Belt
Officially, the Atlantic hurricane season begins on June 1 and extends to November 30. Historically, however, most hurricanes occur between September 10 – 24. The chances of one impacting the Dominican Republic, especially the East Coast (Punta Cana) are slim. Only 14 hurricanes have actually hit the Dominican Republic since 1894. One (1) in late August, Ten (10) from September 10-22, two (2) in late September, and one (1) in mid-October. Of these 14, only 3 hurricanes actually disembarked, or sideswiped onto the shores of the East Coast (at or near) Punta Cana; The most recent was Hurricane “Maria” (Category 3 to 1) Sept. 2017; then Hurricane “Jeanne” (Category 1-Tropical Storm) in 2004 and Hurricane “Hortense” (Category 3 to 1) Sept. 1996. “Maria” started as a category 3, but quickly dissipated to a 1. See Broker Maria speaking about this storm on Punta Cana TV/ sponsored by “Punta Cana Homes”
A combination of geographic and meteorological reasons account for this unique phenomenon for the East Coast of the Dominican Republic. Unfortunately, Puerto Rico typically takes the brunt of the storms. Residual winds (or tropical storms) typically work themselves to the north or south of the island and are carried away by natural jet streams around the sharp geographic tip of Punta Cana.
5) Lower Cost of Living
Overall, when comparing costs in Canada, some areas of the U.S. and especially most of Europe; the cost of living in Punta Cana are quite low. The following examples are affordable: 1) Many Professional services; 2) manual labor (repairs); 3) insurance for cars, home and health (especially health); 4) medical and dental costs; 5) veterinarian costs, 6) most real estate; 7) rent (excluding Cap Cana, the villa residential areas of Punta Cana Resort, and in some championship golf course residential communities); 8) internet, cable TV; 9) entertainment; 10) Food, although a bit more expensive in, or near the tourist zones. A 10-20-minute drive to larger grocery stores in Downtown Punta Cana resolve this concern. Costs that are higher are those that are not made here and must be shipped. Examples are: 1) Cars; 2) Many electronics (plasma TV’s, laptops, etc.); although the prices of cars and electronics have gone down considerably since 2015. 3) Gasoline is still expensive averaging around $ 5.00 a gallon. Gas is sold by the gallon (not liter). Other more expensive commodities are 4) Name-brand clothing, due to shipping taxes and tariffs. Electricity, however, since it is always warm, gas or propane heat is not needed. Additionally, solar panels are now more available, and affordable to offset this cost. Overall, the Dominican Republic cost of living (not including rent) is approximately 44% less than the U.S. average.
6) Rapidly Growing Infrastructure
The Dominican Republic is not a “third world” country; This is an outdated reference when the world had a 1st, 2nd, and 3rd world labels, or classes. RATHER the correct description for the Dominican Republic is “Developing Country”. This is the perfect investment climate for investors as the economic conditions continue to improve rapidly.
Telecommunication and transportation are readily available throughout the country and the government has recently pumped millions of dollars into new highways and general road improvements. In 2018 the Coral highway (or Interstate 3) was completed, and improvements to the primary Interstate 4; making travel from Punta Cana to the rest of the island fast and easy. For example, LaRomana now only takes 45 minutes, and just over 2 hours to reach the capital of Santo Domingo from Punta Cana. The country has several international airports and the flight between Punta Cana and Miami takes only two hours.
While some infrastructure is still lacking, Punta Cana is changing and growing quickly. Less than 20 years ago (2000), Punta Cana was just beaches, palm trees, and narrow dirt roads with a few small local businesses, and a couple gas stations. Today Punta Cana / Bavaro (specifically the touristic beach-town areas of El Cortecito and Los Corales), and Downtown Punta Cana (located between Bavaro and the official city of Punta Cana) have transitioned to a fun, vibrant, yet not overcrowded Caribbean beach-town area.
7) Tranquil Lifestyle & Expat Communities
Life slows down in Punta Cana and relaxation and reflection are norms. It is a place where many nationalities come together to vacation, work, retire and play in the tranquility of warm weather, gorgeous beaches and a friendly, easy-going Caribbean culture.
Many nationalities, especially North Americans, are buying in Punta Cana to escape their countries economic stresses, understanding too many rules, regulations, and laws inhibit a fun, yet clean and responsible lifestyle.
The majority of expats (people from other countries who live and work here) are from North American (Canada and the U.S) and Europe; primarily Spain, Italy, Russian, England, France and Germany. The Dominican Republic is also popular island for other Latin countries and areas like Cuba, Venezuela, Argentina, and Brazil (Portuguese). Owners from all over the world establish rewarding, long-term friendships; all while learning about our different cultures (much different than the media plays out). Expats, regardless of their home country, often have in common lifestyles, travel experiences, hobbies, professions, health and fitness goals, and much more. And of course, together those living here on the East Coast (Punta Cana / Bavaro) enjoy the benefits of the nearly 50 international cuisines (a walk away), as well as the luxurious amenities offered within their beautiful Residential Villa or Condo communities.
8) Abundance of Things to Do
There are endless things to do, places to go, and people to meet in Punta Cana. There are incredible beaches, unforgettable excursions and tours, waterparks, tennis, golf, boating, deep sea fishing, scuba diving, motocross or buggy travel groups, large high-tech fitness centers, enticing local shops, delicious restaurants, shopping malls, movie theaters, casinos, pubs, exciting night life – Trust me, if you like to stay active you won’t be bored!
In fact, the entire country is diverse, beautiful with many other amazing areas to explore. I.e. Some of the best White Water Rafting in the mountains of Jarabacoa, Whale Watching in Samana Bay, World Kite Surfing competitions in Cabarete, on the North coast, mountains in the North, South and Central regions, old historical forts in Santo Domingo and La Romana,and lets not forget the soft white sandy beaches on the East coast (Punta Cana/ Bavaro). We highly advise adventure seekers to get out and explore this beautiful and amazing and SAFE country.
9) New Hospitals
Since 2010 Punta Cana and Bavaro (and the entire east coast of the Dominican Republic) have emerged and evolved, attracting visitors from around the world. Addressing the growing need of these top Caribbean tourist destinations. Punta Cana medical options have become much more reliable and advanced, with Hospitals (which they often call clinics here) accepting international insurance, with surprising new and high tech medical equipment with more and more qualified staff who also speak (read and write) English. Now Expats (foreigners living and working here), as well as tourist, renting condos or staying at any of the over 50 All-Inclusive Resorts, can have more confidence knowing they have more reliable medical care options. Especially important for primary investors who are over the age of 50. Here are the best Punta Cana/ Bavaro hospitals a short drive away from all the residential communities (condos and villas).
International Medical Group – (or IMG) is a newer medical group (hospital) conveniently located off the main highway between Bavaro and Downtown Punta Cana, directly across the back entrance to Residential Costa Bavaro… and less than a 1 minute drive to the back entrance of Residential Cocotal Golf & Beach. IMC provides some of the best and newest medical technology available on the island. Additionally, providing bilingual services and mandates to operate within strict international standards, as well as the standards of the Dominican government. They provide advanced, personalized services. There are currently 40 beds at their Punta Cana location with plans to expand as this area continues to grow.
Hospiten Bavaro – A very established medical group for nearly 50 years (1972) with locations throughout the Dominican Republic as well as other Latin American countries. Providing both medical hospital centers as well as ambulatory health centers to provide emergency and preventative care for their patients. The Hospiten center in the Punta Cana area is conveniently located in Veron, a quick 20-minute drive from Punta Cana or Bavaro.
Punta Cana Doctors - A leading medical group based in Punta Cana Village offering a wide range of services to locals and visitors. 17 medical specialties offering important medical exams and procedures. This group also operates a 24-hour emergency service with a convenient emergency line where callers can receive initial medical guidance from doctors over the phone.
. They take insurance but also serve privately funded patients. They also have
Centro Medico Punta Cana -This is a private hospital that adheres to international standards and provides advanced care for locals and visitors. They have strong relationships with respected global institutions and use up-to-date medical technology.
Because the quality of medical care has improving drastically since 2008, with several more medical and hospital options offering urgent and ongoing care, meeting international standards Combined with the value of Punta Cana and Bavaro (Cortecito and Los Corales Beach-towns) real estate values climbing, many new residents and visitors are flocking to the Punta Cana area in hopes to buy their dream vacation or retirement home, while prices are still affordable.
10) More Accredited schools and Universities- overview coming soon!
11) Many Business Opportunities
Bavaro is the city next to Punta Cana. Bavaro consist of its HGTV renowned beach-towns of El Cortecito and Los Corales which have become one of the most popular condo-rental destinations in the Caribbean since 2015. Bavaro also consist of Residential Cocotal Golf and Beach, Residential Villas Bavaro, and Costa Bavaro, as well as the busy business districts of Fruisa and Downtown Punta Cana (which is actually in Bavaro... Not Punta Cana).
There are still many excellent business opportunities in these beach-towns. Growth has been phenomenal, however, often investors pursue the same things, i.e. tour companies, restaurants (bars), and rental car companies. For a savvy entrepreneur, there are still many other businesses or services vacationers, and expats need or desire. Contact us for consultation / market research services we provide on business opportunities. For more information.
12) Stable Government and Economy
The Dominican Republic has one of the most stable governments in the Caribbean. With many allies around the world, and no enemies. Although legal residency is required for those living here full time, the government has a positive attitude toward foreigners and foreign investment and requires less red tape in regulations and policies in residency and in legally establishing businesses, hence, allowing more free enterprise.
The Dominican Republic has one of the fastest growing economy in the Caribbean with an impressive Gross Domestic Product (GDP) since 2010. Expansive trade in import/ export with preferential trade agreements with the U.S., Europe, Central America and other Caribbean countries.
The Dominican Republic is a REPRESENTED DEMOCRACY, with Executive, Legislative, and Judicial branches, along with Municipal Government and Administrative Divisions representing 31 Provinces, with 4 major Parties. Since 1996 (emersion of the Dominican Libertarian Party or PLD) Dominican Republic has seen continued increases in the GDP. The Dominican Republic’s “middle class” has been growing since 1980, to an estimated growth to 36% by 2018. Regardless, there is still a big social economic division between the approximately (18 %) wealthy and the (46%) poor Dominicans (estimated averages in 2018).
With education efforts increased 10 fold since 1980, and televisions, phones, computers now more affordable and accessible to even to the poor, more attention and support have been shifting the PRM (Modern Revolutionary Party/ or Social Democratic Party), headed by 2020 Presidential candidate Luis Abinader, a postgraduate at Hult International Business School in Cambridge, Massachusetts. Overall, the 4 major Parties of the Dominican Republic have done good job of addressing the challenging and changing needs of the Dominican people. Like any country, there are and will always be political preferences, and divisions of class by income.
13) Low Crime Rates
Punta Cana, and the touristic beach-towns of Bavaro, have very low crime rates, primarily because they thrive on tourism and because the police and government work hard to keep its tourists safe. Yes, on rare occasions, like anywhere in the world, there can be some petty theft… or crimes of opportunity, but for the most part, tourist and Expats, foreigners’ living and / or working here, feel safer on the East Coast of the Dominican Republic, than in many other Countries and Cities worldwide. Drugs, although higher rates in the bigger cities, is considered rather low in Punta Cana / Bavaro. Penalties are severe for those who are caught selling or smuggling drugs in or to this country. Murders, rapes, and kidnapping of tourist is virtually unheard of in the entire country!
Unfortunately, in 2019 the world was led astray with believing negative and inaccurate U.S. news reporting about alcohol related deaths by tourist. It was proven by the FBI and the World Health Organization, that the 8 American deaths were by “Natural causes”. More accurately defined as “over-indulgences at resorts by unhealthy tourist over 50”.