Guide to the Dominican Republic

Dominican Republic: Introduction

The Dominican Republic is one of the most popular destinations for overseas property buyers in the Caribbean. Given the heritage and past of the island, there is a rich culture to attract visitors, and like all of the Caribbean islands, there is a distinct individual flavour to the Dominican Republic.

Dom Rep, as it is known, takes up two-thirds of the island of Hispaniola, and is a favourite stopping-off point for the many cruise ships that wend their way among the islands throughout the year. The local economy depends largely on tourism for survival, but makes a superb location for a second home, or even as a destination for permanent emigration.

Property in the Dominican Republic is somewhat less-expensive than is found in much of the rest of the Caribbean, but don’t let that put you off a great location for a home overseas.

The region

As a country that was home to the first permanent European settlement in the Americas, the Dominican Republic holds a significant place in the history of the region. Santo Domingo was also the site of the first colonial capital, cathedral, university, European-built road and fortress, and many other things in the development of the islands.

As a Spanish colony, the island of Hispaniola had a turbulent period of revolt, conflict and invasion. Occupied and ruled for a time by the French, the nation of the Dominican Republic eventually became independent for the first time in 1861. Following more turbulence, a period of US rule and several failed governments, a representative democracy is now in operation in the country, and has been successful in stabilizing the political process and getting various modernisation initiative pushed through in the country. The latest of these has been the construction of the Dominican Republic Metro.

The island of Hispaniola is located in the Greater Antilles, to the west of Puerto Rico and the east of Cuba and Jamaica. The island itself is mountainous, and the Dominican Republic alone has four significant mountain ranges, including the highest range in the whole of the West Indies, the Cordillera Central. The ranges run parallel to one another across the island, creating a number of valleys and plains.

In addition, the Dominican Republic has a number of cays and islands dotted off the coast, which are also popular tourist attractions. The two largest islands are Beata and Saona, which is protected as a nature reserve.

Property development on the island tends to be spread around the coastal areas, with Puerto Plata on the north coast and Punta Cana among the most popular locations.

Climate

The climate in the Dominican Republic is that shared by the majority of the Caribbean – tropical and maritime. The wet season lasts from May to November, with the periodic hurricanes that afflict the Caribbean from time to time. Otherwise, the weather is generally warm, with mean temperatures across the year above 21 degrees C. The advantage of the Caribbean is that there is little temperature difference between the summer and winter months, and in general, temperatures are around five degrees colder in the depths of winter than in the height of summer.

Getting there

Flights to this part of the Caribbean most often pass via North America, and then on into one of the three international airports in the Dominican Republic. Las Americas International Airport is in Santo Domingo and handles a large amount of the tourism arrivals, but the other two airports, La Romana and Punta Cana are servicing more and more international passengers. Don’t expect too much in the way of bars and shopping at the airport though, the airport at Punta Cana has a thatched roof!

From the UK, fly to New York or Florida for the easiest journey on to the Dominican Republic. The choice of scheduled or chartered airlines flying into the major US hubs is wide, so it should be easy enough to find a decent deal to get there.

Property in the Dominican Republic

Due to the nature of the economy in the Dominican Republic, where tourism is the biggest driver behind recent growth, the majority of properties in the country are slanted towards use as tourism residences in some way. This can be as investments, holiday homes or semi-permanent residences, and given the types of properties that are being built on the island, foreign buyers have been very active in the marketplace for many years. There are no restrictions on foreigners buying in the Dominican Republic.

The vast majority of the property being built in the Dominican Republic is connected in some way with the tourist trade – even those properties intended for permanent occupation by the owners are geared to being able to be let to visitors if necessary.

Investors tend to be keen on the properties that can be bought within the confines of resort developments, where all amenities are within reach and almost every need is catered for on-site. Any connection to hotels on the same site is an advantage for buyers, as this often provides for management of the property and allows for the most efficient rental scheme to be employed with the support of the major hotel group. Predictions are that the tourist trade in the Dominican Republic will continue to grow for the next decade, which is tempting many to invest.

The surprisingly-low cost of living in the Dom Rep, compared to many of the other Caribbean islands, is attracting many people who are looking for a family second home. The Dominican Republic makes an ideal destination for the vacation owner given the climate, the relaxed lifestyle and the availability of property. The lower cost of living also makes it easier and cheaper for families to maintain a second home than on some of the other islands.

If purchasing property in the Dominican Republic for either investment use, be aware that a significant proportion of your market of potential tenants will be from both South and North America. These are the closest places to the Caribbean islands, and in the case of the Dom Rep, the lower cost of living makes it popular with people who want a taste of the Caribbean dream without paying the premium of some of the more expensive islands.

As for prices, a two-bedroom apartment on one of the most popular and successful upmarket developments in the country will cost around £280,000 ($555,000), while on the other hand, a brand new two-bedroom villa in a gated community in Puerto Plata can be found for as little as £90,000.

Local life

The Dominican Republic, with its past as a Spanish colony and a large amount of influences from other countries, is one of the most ethnically-diverse places in the world, and most of the population of the country refer to themselves as mixed-race. While the culture is largely Spanish-influenced, expect to find traces of Creole, English, French, German, and Italian cuisine, music, language and personality.

Conclusion

With a colourful and, at times, turbulent past, the Dominican Republic has often been seen as one of the poorer Caribbean nations in comparison to some of the more imperious tax havens elsewhere in the islands. However, the lower cost of living is attracting tourists and property buyers in ever greater numbers, both from the UK and the rest of the Americas. There are property bargains to be found here, proving that the dream of living on a sun-kissed Caribbean beach is more attainable than many ever thought possible.

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