Dominican Republic

A guide to buying a home in the Dominican Republic. Compiled by Allegra Hamilton

Background and history

The Dominican Republic is located next door to Haiti, on the eastern two-thirds of the Caribbean island of Hispaniola. The second-largest of the Greater Antilles, this well-watered and mountainous country of 18,700 square miles lies west of Puerto Rico and east of Cuba & Jamaica, and it’s northern shores are bordered by the Atlantic Ocean with the Caribbean Sea in the south.

First sighted in 1492 by Christopher Columbus, and named Isla Espanola (Spanish Island), he found the island inhabited by the friendly Arawaks. Discovering such a fertile land along with precious gold, it became the first New World colony settled by Spain and was the base for their conquest of the Western Hemisphere. The country had no political freedom until 1966 when a constitution was adopted and elected presidents held office.

About 80 percent of the country is covered with a series of mountain ranges running roughly parallel across the country from the northwest to the southeast, with lightly populated valleys tucked into the landscape, while a low plain - dominated by the capital city, Santo Domingo - covers the eastern end of the island.

The official language is Spanish, and while English is spoken, it is not the native tongue and some fluency is recommended, particularly in the countryside. The population of around 9 million is mostly made up of Dominicans of mixed ancestry – European, African and Native Indian, who express themselves through music, dance and song, particularly merengue, which has enriched their folklore for centuries.

Economy & Tourism

Considered a middle-income, developing country, The Dominican Republic is primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and free trade zones), agriculture remains the most important sector in terms of domestic consumption and second in terms of export earnings. The Dominican Peso (RD$) is the national currency of the country although the U.S. dollar is often accepted, especially in shops and hotels. Seven major airlines serve the island (all out of the US), including American, Jet Blue, US Airways & Continental, while smaller, local companies such as Air Santo Domingo operate internal flights.

The Dominican Republic has made a name for itself as an affordable Caribbean destination and for many years has seen an average of 3 million visitors coming to explore, party and relax. Recent growth in the tourism sector has seen The Dominican Republic become a favourite haunt of the eco-friendly and adventurous, with tour operators taking advantage of the natural topography to create a playground of adventures to activities in a diverse range of environments from tropical rainforest and arid desert. Expansive coastlines and many miles of beach, strong surf, and powerful winds offer many ideal locations for water sports like windsurfing, boogie boarding, and kiteboarding.

New championship golf developments designed by some of the greatest names in the game add to the 20-odd courses on the island, which is rapidly developing a reputation as a favourite golfing destination.

Real Estate Options

The country is wide open to foreign investment, and as a result, many foreigners are beginning to invest and buy real estate. There are a number of opportunities available, and costs are moderate when compared to similar properties in other Caribbean Islands

As development grows alongside demand, prices start to rise, but there are still some bargains to be had, if you are willing to look. For those seeking to develop on a grand scale, a stunning 125 acre beachfront lot will come in at US$30 million, or if a going concern is what you are looking for, try a 12 apartment building for under US$650,000. More affordable options are available, including residential properties in communities for $500,000 and under, while luxury resort-based villas in oceanfront gated communities can run anywhere from US$1,000,000 for a to US$5,000,000 for a spectacular estate on a cliff edge in Cabrera, on the north coast. Exclusive oceanfront development Sea Horse Ranch is offering a complete leisure and lifestyle club environment with tennis, horse-riding and golf course with beachfront villas from $3.5 million.