DOMINICAN REPUBLIC. THE BEST INVESTMENT DESTINATION FOR HOTEL RENTAL PROPERTIES.
- Alejandro Betancourt
- Nov 7, 2023
- 4 min read
PUNTA CANA, ONE OF THE WORLD'S TOP TOURIST DESTINATIONS
Punta Cana is among the top five most sought-after vacation destinations in the world for 2021, according to leading travel publication Condé Nast Traveler. It was also found that more travelers than ever want to vacation in Punta Cana in 2021, and it is no wonder that the priority of travelers at this time is "seclusion, sun and sand". And Punta Cana has it all!
The data comes from the Travel Trends 2021 report of the leading travel website Expedia. It precedes another report that shows the Dominican Republic leading the way in the Caribbean and Central America, attracting one in six (17%) of all visitors to the region in 2019.
Magaly Toribio, marketing consultant for the Dominican Republic Ministry of Tourism, says, "The Dominican Republic continues to take some of the strictest security measures in the Caribbean during the COVID-19 pandemic; travelers looking for a safe getaway will find it on the shores of Punta Cana and the rest of the country."
Since the summer of 2020, when the Dominican Republic opened its airports, the country has attracted more than one million tourists.
As COVID restrictions begin to ease in 2021, the Dominican Republic is looking to capitalize on increased online interest from vacationers. American Airlines, for example, just reaffirmed its commitment to the Dominican Republic by announcing more flights beginning in April. In January, Bulgaria's new airline, GullivAir, launched weekly flights to Punta Cana, and from South America, low-cost carriers such as Wingo and Ultra Air are planning more routes, particularly from Colombia.
Punta Cana is the country's number one tourist destination thanks to its nearly 50 kilometers of coastline, world-class attractions and entertainment, and championship golf courses. It is also well connected, thanks to its international airport. In a typical year, nearly 8 million passengers pass through Punta Cana International Airport, two-thirds of all tourists to the Dominican Republic.
"With average temperatures of 28 degrees, beautiful white sand beaches, 10 world-class golf courses and plenty of room for seclusion and privacy, Punta Cana is the best place in the heart of the Caribbean".
Quality real estate is competitively priced, with entry-level prices in the best real estate projects and resorts ranging from $150,000 to $200,000. These homes are beachfront or minutes from the beach, making them highly attractive to investors, retirees, vacation home owners and digital nomads looking to work from home with the best quality of life.
EXPERTS POINT TO THE DOMINICAN REPUBLIC AS THE FIRST DESTINATION FOR FOREIGN INVESTMENT.
The Economic Commission for Latin America and the Caribbean (ECLAC) named the Dominican Republic as the top destination for foreign direct investment in its economic report (February 2023): Preliminary Balance of the Economies of Central America and the Dominican Republic in 2022 and Prospects for 2023. According to its projections, the country could end the year with more than US$2.5 billion in foreign investment.
On the other hand, a report by the Bank of America entitled "Dominican Republic, the weight of evidence" predicts that the country's Gross Domestic Product (GDP) will grow by 5% in 2024, higher than expected.
These figures, along with factors such as economic, political and social stability, make countries such as the United States, Germany, Spain, Mexico and Canada, among others, consider the Dominican Republic a safe market for investment and submit proposals for the tourism, telecommunications, energy, agribusiness, construction, entertainment, etc. sectors.
CANADIANS LOOK TO THE DOMINICAN REPUBLIC AS A TOURIST DESTINATION.
Canadians are looking more toward the Caribbean, especially the Dominican Republic, especially at the COVID-19 intersection.
The current U.S. border closure has more Canadians turning their attention to Caribbean destinations, according to a recent survey by the Travel Insurance Association of Canada (THIA).
An overwhelming 79% of the 1,000 Canadians surveyed and 90% of seniors said they would NOT travel to the U.S. this winter, even if their travel insurance policy offered COVID-19 coverage.
Canadian interest in Noval Properties' luxury Dominican Republic vacation, winter, retirement and investment homes remains strong.
THE DOMINICAN REPUBLIC MAKES RETIREMENT AFFORDABLE.
What makes the Dominican Republic the best investment destination for hotel rental properties?
The Dominican Republic is not only one of the best retirement destinations in the world, it is also one of the most affordable. In fact, retiring in the Dominican Republic is so affordable that it was named one of the top 10 best places to retire abroad by USA Today.
In support of this claim, InternationaLiving.com has named the Dominican Republic one of the top five Caribbean islands to live on without going broke.
One of the main reasons the Dominican Republic is so affordable is the competitive price of housing.
In addition, and by virtue of the CONFOTUR law, all foreign owners are exempt from the transfer tax (property rights), which is 3% of the value of the property; and from the annual real estate tax (IPI), which is 1% of the appraised value of the property, for 15 years.
DOMINICAN REPUBLIC. THE BEST INVESTMENT DESTINATION FOR HOTEL RENTAL PROPERTIES.
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