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Year End Review 2016 – My Christmas Letter to You

To Family, Friends, Colleagues and Luxury Agents and Brokers,

Well, it’s that time of the year to share with you our family Christmas letter. Your support over this 2016 year is not something I take for granted. The least I can do is treat you as a friend and bring you into our Provaltur/Christies family, in this small way.

And, though 2016 may be over, there were plenty of interesting and eye-opening Dominican luxury real estate market stats and data that can give us a glimpse of what’s to come for the Dominican luxury real estate sector in 2017. Here are some of the most intriguing data points to come out during the final months of 2016 you should know to help your home search you started with us this year….

In the last several years, Dominican Republic luxury real estate seems to have been a magnet for international buyers, whether the reasons being the Dominican’s favorable tax regulations ( we sent an email with details), global economic weakness, Brexit, Trump, emigrations effects and terrorism events in Europe and Asia, or governmental unrest in South America.

With its beautiful sandy beaches, political stability, great year-round weather, many restaurants, cultural attractions, tropical music or 500 years history and its more than 70,000 hotel rooms served through seven international airports leaded by Punta Cana, Santo Domingo and Puerto Plata, how can one resist the Dominican Lifestyle in a beachfront, golf front real estate or walking in the first colonial city of Las Americas?

The year 2016 was one of the most active years for the hotel development or land real estate market in the entire island. In the last eight years the numbers of hotel rooms increased by a 12% to almost 71,000. By 2019, it is expect the opening of 18,000 more hotel rooms in the country, due to more than 55 new projects and investments of more than 2 billions dollars in the tourism sector.

PROVALTUR is directly dealing today with five different Hotel Groups and Tourism Investors mostly looking to purchase land or hotels for sale in the East Coast, not only in Punta Cana as their interest goes as far as Miches. We flu over the entire East Coast of Dominican Republic, with a pro camera,  spoting  the last beachfront lots for sale in the area and, I can assure that, Provaltur is today offering the best last six great lots available for sale with price starting as low as USD 25.00 x m2. You can explore some land opportunities here:http://provaltur.com/property-feature/prime-land/ and for a copy by email of a complete report of the best 6 lots for sale in Punta Cana, please contact us at: cherrera@provaltur.com

The year 2016 however, showed to be a bit challenging for the high end luxury homes and luxury condos. Although Provaltur sold several villas at Casa de Campo, an unique oceanfront mansion in Abreu near Playa Grande ( where new Amanera opens this year too ), that spark the interest of sellers and buyers in the North Coast, the luxury real estate market was soft overall, as most of international buyers were apprehensive due to the strong US dollar and their unstable economy and the uncertainty generated by the election of Mr Donald Trump. ( by the way, Mr Trump still has real estate interests in the East Coast of the DR )

Crista Ryan, President of Casa de Campo Real Estate recently declared that ” Over the past 12 months our sales continue strong with Villa sold volume up 12%, median sale price up 53% and the rental market is thriving”   That statement is valid for the Punta Cana area. In recent analysis of the market we determined the general variables that showed the state of the luxury real estate market. Read entire article ” A Glance at Dominican Luxury Real Estate” here: http://provaltur.com/pricing-below-the-market-aver…

Since the summer, with the international currencies, including the Euro, Canadien Dollars, British Pound, Swiss Franc getting a bit more attractive against the US Dollar and oil prices on the rise, the international market in Dominican Republic has continue to show clear signs of long term genuine interest, especially after the presidental election. Investors are considering the Dominican Real Estate market kind of a safe heaven market with great properties, competitive profitability with continous annual ROI’s average of 15% in the hotel industry,  at great prices. But remember, the successful sale or purchase of a luxury property begins with the right agent. Always find a luxury real estate broker who is highly qualified to help you market your property successfully or find you the ideal home or land. 

We are seeing many European, Canadian and American buyers currently actively looking at homes, condos, and vacant land, and want to make Dominicana their home, not for vacations only anymore. Some of our clients see the DR like a HUB in the Caribbean with direct, quick and numerous connections between South America, Europe and North America.

Now with the results of US elections behind us, we have noticed an acceleration of this trends as the showing requests for resort homes and land have increased dramatically. Buyers are not only looking, but also making wise offers to secure the best properties and to move some of their businesses here. Why? Check this funny video about why: https://youtu.be/XUcl8e8AjGA

World has definitely set its sights on the luxury real estate market in Dominican Republic. The gated communities such as Casa de Campo Resort and Villas, Punta Cana Resort and Clubs, Cap Cana, Orchid Bay, and the colonial zone of Santo Domingo or luxury all-inclusive hotel zones like Bavaro, Punta Cana, Macao, Uvero Alto, Lavacama, Miches or Playa Grande are Dominican Beach’s most active luxury and hotel real estate destinations.

It seems that everyone wants a slice of heave because DOMINICANA AS IT ALL, and our prediction is that the next 10-14 months may still be a challenge at some price ranges levels in the high end real estate market, but sales for hotel land will remain very strong!  Dominican Government understood and will keep all incentives in place to reach the goal of 10MM per year as soon is possible. This 2016 will be closing with almost 6MM tourists. More reasons? Learn more with these videos: http://provaltur.com/dominican-republic/

Luxury Buyers are wiser than ever, choosing the best properties and negotiating them at great values. A word to Sellers: prices must be CREDIBLE and DEFENDABLE. Buyers are as smart as Sellers. Luxury sales will be concentrated inside the most established and prestigious resorts in the best beachfront or oceanfront available. The few ocean and beachfront mansions will see more buyers. Also in the low price range, less than one MM, sales will continue while the inventory exists. Prepare to deal with buyers who will make multiples residential transactions that will include hotels, farms and beachfront land in their portfolio. Hotel zones with proven business model like Punta Cana, will see more buyers investing in the last beachfront lots available for sale. If you are a buyer/investor, act quickly.  As the prices of land rises in Punta Cana other regions of the island will become more attractive, like Samana or the Amber Coast. The colonial zone will continue to attract buyers with the right bohemian- omantic profile. Need Luxury Home Value Guidelines? 

Dominicana is the best country to invest in the Caribbean. Let’s 2017 be the year you make right decision. With its strategic location, friendly people and unparalleled beaches, golf courses, marinas  distributed in the North, East and South of the Island who would not want to call any of Dominican beachfront condos, golf front villas and waterfront mansions their home?! Need ideas? You can start here: http://provaltur.com/3-columns-gallery/

 

If you need help selling or buying a home, land or hotel in Dominican Republic, call The Provaltur International / Christies International Real Estate Team and see how we can help you with your real estate needs. Contact us at cherrera@provaltur.com or call 809 6975117

 

With Gratitude I wish you a very Warm, Family, Healthy and Happy Christmas !