Real Estate - Dominican Republic | Statista Market Forecast

The Real Estate market market in the Dominican Republic is expected to reach a value of US$729.80bn in 2024.
The residential segment dominates this market, with a projected market volume of US$585.80bn in the same year.
It is anticipated that the market will experience an annual growth rate of 2.78% between 2024 and 2029, resulting in a market volume of US$837.20bn by 2029.
In comparison to other countries, United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
The Dominican Republic's real estate market is experiencing a surge in luxury beachfront properties due to increasing demand from international buyers.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Dominican Republic is experiencing significant growth and development in recent years.

Customer preferences: Customers in the Dominican Republic are increasingly looking for properties that offer both luxury and affordability. They are seeking modern amenities, such as swimming pools, gyms, and security systems, while also considering the cost of living and property prices. Additionally, there is a growing demand for properties in prime locations, such as beachfront properties or properties in close proximity to tourist attractions.

Trends in the market: One of the key trends in the Dominican Republic's real estate market is the increase in foreign investment. The country's stable political environment, attractive tax incentives, and growing tourism industry have made it an appealing destination for international buyers. This influx of foreign investment has led to the development of luxury resorts, condominiums, and vacation homes. Another trend in the market is the rise of eco-friendly and sustainable properties. With the increasing global awareness of environmental issues, customers are showing a preference for properties that are energy-efficient and utilize renewable resources. Developers are responding to this demand by incorporating eco-friendly features into their projects, such as solar panels, rainwater harvesting systems, and green spaces.

Local special circumstances: The Dominican Republic's tourism industry plays a significant role in the real estate market. The country attracts a large number of tourists each year, particularly from North America and Europe. This influx of tourists has created a demand for vacation rental properties, leading to the growth of the short-term rental market. Additionally, the Dominican Republic has a Citizenship by Investment program, which allows foreign investors to obtain citizenship in exchange for investing in real estate. This program has attracted high-net-worth individuals who are looking for opportunities to diversify their investment portfolios and gain access to the benefits of Dominican citizenship.

Underlying macroeconomic factors: The Dominican Republic's strong economic growth and political stability have contributed to the development of the real estate market. The country has experienced steady GDP growth, low inflation, and a stable exchange rate, which have created a favorable investment climate. Additionally, the government has implemented policies to attract foreign investment and promote economic development, including the construction of infrastructure and the improvement of business regulations. In conclusion, the Real Estate market in Dominican Republic is experiencing growth and development due to customer preferences for luxury and affordability, trends in foreign investment and eco-friendly properties, local special circumstances such as tourism and the Citizenship by Investment program, and underlying macroeconomic factors such as strong economic growth and political stability.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Dominican Republic

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