Extremidad Cana and the Dominican Republic Real Estate – What to Expect during the past year!
December 2005 was several times in Punta Cana and the Dominican Republic. At that time, the Punta Cana and Dominican Republic real estate markets were enduring what some would think of atypical growth.
The demand seemed to be far greater than the supply, with a new thriving influx of foreign buyers, the lowest interest rates in the history of the Dominican home investment market, both US dollars in addition to Dominican pesos, national addition to international economic stability, substantial rental income, mega vacation developments sprouting like outdoors flowers, international financing, you will have were issued, free ideal press, and tourism statistics at an all-time high. Consumers were looking for anyone developing and selling near the island’s tourism hubs.
Those ended up the good ol’ times! It turned out about being in the right put at the right time.
Many viewed that there was no reason for often the Punta Cana and the Dominican Republic not to be often known as the “Home of the World”; however, it was also accentuated that the real estate investment industry needed to take some important measures for development to stay in an organized fashion.
Rapidly forward to the end of ’08. Today, the real estate industry is likewise experiencing a completely atypical problem, which unfortunately can’t be called constructive, but can’t be called adverse either. It is going back from what is considered a normal, standardized market. Supply and demand are more inside balance than years earlier.
Any real estate developer can tell you that selling an entire development within a year is not standard. Normal would be no less than two years to sell a small to be able to medium size development and possibly more time on the larger, more ambitious developments within shut down gated communities. Of course, it is normal to think that everything is cooling off after coming out of the particular “BOOM” we have been experiencing within the last few years. Instead of cooling off, I had called it business as always, going back to normal, supply and demand in equilibrium!
At this time, it is important to sit down and examine the “foundation” of our industry as we take the necessary helpful measures based on the lessons figured out.
First, let’s look at the basis. Why the Dominican Republic? Why Punta Cana? The things that make us so special? Exactly why are Punta Cana and the Dominican Republic relevant investment market segments? Why alternatives for next home buyers? Why should they be considered ideal places for retirement?
The excellent geographical location enables us to have a year-round warm climate. The cold nations around the world remain cool. We always have some of the best white sand shorelines and turquoise-colored magnificent waters. Legal Framework: No Restrictions for Outsiders, Equal Ownership Rights Economical Stability Social Stability Private Safety, Dominican Republic criminal offenses are low in comparison to additional Caribbean Neighbors Modern and also adequate transportation and telecoms infrastructure (airports, seaports, tracks, telephone, internet). There is an area for improvement, but we could head in the right direction. Extensive contributory offer (water sports, playing golf, restaurants, grocery stores, resorts, casinos) Ecotourism The Dominican Persons – Always friendly and hospitable!
Beyond these things, we must recognize that there has been the inspiration for foreign investment by local governments. Foreign direct expenditure more than doubled in ’08, according to statistics from the Heart for Exports and Expenditure (CEI-RD). Investment in ’08 totaled US$2. 35 tera-, for a 55. 1% growing from 2007.
Just a while back, on December 12, 2008, Dominican Republic President Leonel Fernandez broke ground for the US$1. 4 billion dollars VistaCana Resort & Country Driver in Punta Cana. Director Fernandez and the project’s key promoter, Salvador Termín, in the direction of the groundbreaking ceremony, having Tourism minister Francisco Javier Garcia also present. Mr. Termin spoke about the universe crisis we are experiencing, in addition to emphasizing that they have prepared their selves for the crisis. “We smart idea to continue to invest, since that is definitely what we do. We believe in the Dominican Republic since it continues to be a secure place to invest with cheaper risks compared to other places worldwide”.
Venezuelan investors commenced construction of the tourist sophisticated on six million rectangular meters of land. The complex will have 6 000 residences, a 100-area business hotel, a 27-hole golf course, and a 180 000 square meter artificial pond integrated into the beach location and built at an associated of around US$1. 4 million dollars. This will bring something like 20 000 new jobs to be able to Punta Cana when agreed.
President Fernandez said, “this development is proof that will within the global crisis that individuals live today, foreign organizations like the developers of VistaCana, testify that the Dominican Republic still has economic and economic security for worldwide investors, designers, and end users alike. A single 500 homes have been obtained by an investment fund regarding North American retirees out of New york D. C. plus more as compared to 200 units sold to men and women. ” President Fernandez added that in addition to VistaCana, just last week he was in Votre Romana for the groundbreaking affair for the mega development Ribera Nueva La Romana by means of Spain’s Grupo Piñero, users of the Gran Bahia Principe Resorts. This represents US$2. 5 billion dollars with foreign investment. In addition, in the coming days, President Fernandez will be alongside the President of Monaco in the revolutionary ceremony for Punta Bont. Located in Cabeza de Corrida near Punta Cana, having another US$1. 6 tera- dollars in foreign expenditure from the U. K.
That’s a total of US$5. your five billion dollars of unusual investment in the month involving December alone for the real estate property industry. These are large quantities from firms and investors with deep pockets for feasibility and market reports. They have decided that the Dominican Republic is the safest area with the best investment opportunities from the Caribbean and perhaps the European hemisphere.
In addition to encouraging unusual investment, local government has reached:
Enactment of new laws which attract retirees and middle-agers. The incentive for pensioners along with annuitants Reduction of income taxes related to real estate Firm judgment to improve communication infrastructure towards the tourist areas Efficient as well as a better system for the authorization of new developments Public field working hand in hand with the personal sector to help develop collaborative activities aimed at strengthening real estate industry.
We can say that we certainly have a solid foundation for sustained growth in the real estate industry; however, location is no longer, location, location the most crucial part of deciding where to purchase real estate in the Dominican Republic. Investors and buyers are also looking for security, security, and protection.
First and foremost, the security and safety of their investment decision. Investors and buyers realize that property acquired in the Dominican Republic will not suffer the consequences of devaluation that other global markets have experienced. This is for several reasons: Historically, in the Dominican Republic, property values always tended to go up and not down. The Dominican Republic does not have a secondary market for your marketing of securities exactly where good and bad mortgages come together. Many of us know about the USA loan mess with property prices on a downward spiral. Given each of our past experiences with the consumer banking system, the mortgages may be considered “healthy,” meaning that the property’s market industry value exceeds the mortgage’s significance.
Second, security involves ownership rights, of course. Unusual buyers are guaranteed similar rights as those offered to Dominican buyers.
Third, safety measures of return on your investment. Real estate-tourism products have the potential to generate profits because they can be rented for you to employees in the tourism market and also because each day further develops the alleged “residential tourism. ” Describes those tourists who would rather rent a villa or apartment to have a more common experience and learn more about the access region.
What do we have to do as industry frontrunners and real estate professionals?
Discover end users: Avoid clients who else seek immediate capital obtain. This refers to buyers/flippers with neither the intention nor the ability to close on the real estate transaction. The best way is to request a significant down payment that the buyer/flipper will lose if he decides to walk away from the real estate transaction. Before Qualify Buyers: Provide the purchasers with the proper forms and contact information for pre-certification with local banks. This can prevent future headaches in the future. Perform target advertising plans for buyers and investors required for the particular growth. Carry out strategic alliances using government institutions to promote the Dominican Republic as a vacation destination, not just a real estate vacation spot. Join forces with high-profile travel developments for further commercialization in the Dominican Republic. Be extreme in marketing products in many ways: create communauté with international real estate firms, nontraditional advertising, conversing engagements, eMarketing, and so on.
It is important to understand that we have a good product. We live in a marketplace cycle where change is expected and considered normal. It is not necessary to panic. Punta Cárcel and the Dominican Republic are getting to be world destinations. We have many great years of promoting Punta Cana and Dominican Republic real estate. Many of us just need to roll up our covers, continue to work with ethics, boost our comfort, and be creative and proactive. We now have no doubt that Punta Prisión and the Dominican Republic are intended to become the HOME OF THE WORLD!