Economic growth
Since 2012, the Dominican economy has been the fastest growing in Latin America, with average GDP growth of around 6% over the past decade. The country has based its economy on agriculture, trade, the service sector and the tourism industry, with a strong emphasis on free trade zones, mining and tourism.
Lately, the country has recorded sustained economic growth, with GDP rising to $113.54 billion in 2022, an increase of 20.47% on 2021.
Economic growth has been driven by several factors, including the development of the services, tourism and construction sectors. The government has also implemented economic and fiscal reforms to encourage foreign investment and stimulate growth.
In terms of key sectors, tourism is a mainstay of the Dominican economy, with millions of visitors each year. The country has also developed its manufacturing sector, notably in clothing, pharmaceuticals and electronics.
Real estate
The last 5 years have also been a period of growth for the real estate sector in the Dominican Republic. According to data from Global Property Guide, average rental yields in the country reached 6.74% in Q2 2024, which is considered good.
As for property prices, Noval Properties data shows that values have risen significantly over the past 7 years. For example, apartments that used to cost $150,000 are now trading at $300,000.
Foreign investment has played an important role in the growth of the Dominican real estate sector. According to data from ProDominicana, the country captured 25% of foreign capital in 2022, the equivalent of $1.011 billion.
According to the Central Bank of the Dominican Republic, house prices have risen by an average of 11% a year, and the country has recorded average annual growth in the real estate market of 12% between 2010 and 2020.
This growth has been driven by economic, political and social factors, making the Dominican Republic an attractive destination for real estate investment. In addition, the real estate market is presented as a profitable investment alternative, offering the possibility of generating passive income through rentals and obtaining long-term profits through property value appreciation.
It is estimated that the real estate sector will continue to grow in 2024, with an increase in the diversity of real estate on the market.
These trends reflect a favorable outlook for real estate investment in the Dominican Republic.
In conclusion, the real estate sector in the Dominican Republic has enjoyed sustained growth in recent years, thanks in particular to foreign investment and rising property prices.
Sylvain Maufrais, AGIREDOM
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