Q1 2026 Dominican Republic Real Estate Market Report
How is the Dominican Republic real estate market performing in Q1 2026?
The DR real estate market is performing strongly in Q1 2026. Average prices rose 8.2% year-over-year, rental yields range from 6-9% in tourism zones, and absorption rates remain healthy at 72%. Cap Cana and Las Terrenas are leading price appreciation, while Punta Cana maintains the highest transaction volume. Foreign buyer demand continues to grow, fueled by CONFOTUR tax incentives and record tourism numbers.
Executive Summary
The Dominican Republic real estate market continued its upward trajectory in Q1 2026, driven by sustained tourism growth, infrastructure investment, and strong foreign buyer demand. Average prices per square meter rose 8.2% year-over-year across major investment zones, with Cap Cana and Las Terrenas leading appreciation. New unit launches increased 12% quarter-over-quarter as developers responded to tightening inventory. Rental yields remained attractive at 6-9% in top tourism corridors, supported by record-breaking visitor arrivals in early 2026. The CONFOTUR tax incentive program continued to be a major draw for international investors, with applications up 15% compared to Q1 2025.
Price Trends by Zone
| Zone | Avg Price/m² | YoY Change | Trend |
|---|---|---|---|
| Cap Cana | $3,450 | +12.4% | |
| Punta Cana | $2,180 | +8.7% | |
| Santo Domingo | $1,850 | +5.3% | |
| Las Terrenas | $2,650 | +11.2% | |
| Samana | $1,720 | +7.8% | |
| Puerto Plata | $1,380 | +3.1% | |
| Cabarete | $1,950 | +6.5% |
Supply & Demand
New Units Launched
4,280
Units Sold
3,082
Absorption Rate
72%
Inventory (Months)
8
Rental Yields by Zone
| Zone | Gross Yield | Occupancy Rate |
|---|---|---|
| Cap Cana | 6.8% | 78% |
| Punta Cana | 8.5% | 82% |
| Santo Domingo | 5.2% | 91% |
| Las Terrenas | 7.4% | 75% |
| Samana | 7.1% | 70% |
| Puerto Plata | 6.9% | 68% |
| Cabarete | 8.2% | 74% |
Notable Developments
Punta Cana International Airport Expansion
Phase 2 of the airport expansion is on track for completion in mid-2026, increasing annual passenger capacity by 35%. This infrastructure upgrade is expected to further boost real estate demand in the eastern corridor.
CONFOTUR Extension Through 2030
The Dominican government confirmed the extension of CONFOTUR tax incentives through 2030, providing property tax exemptions and transfer tax waivers for qualifying tourism-zone developments. This continues to attract foreign investment.
Las Terrenas Highway Improvements
The Samana highway rehabilitation project has reduced travel time from Santo Domingo to Las Terrenas to under 2 hours, increasing accessibility and driving price appreciation in the northeast coast.
Record Tourism in Early 2026
The Dominican Republic welcomed 2.8 million visitors in January-February 2026, a 9% increase over the same period in 2025. Hotel occupancy averaged 84% across major tourism zones, directly supporting rental yields for investment properties.
Santo Domingo Urban Renewal Projects
Multiple mixed-use developments are transforming the Piantini and Naco districts, with over 1,200 residential units under construction. The urban core is seeing renewed interest from both local and diaspora buyers.
Methodology
This report aggregates data from the Dominican Republic Association of Builders and Developers (ACOPROVI), the Central Bank of the Dominican Republic, Caribium transaction data, and direct developer surveys. Price data represents asking prices for new-construction residential units. Rental yields are calculated using annual gross rental income divided by purchase price based on short-term vacation rental performance. Absorption rates reflect the ratio of units sold to units available during the quarter.
Frequently Asked Questions
Este contenido es solo para fines informativos y no constituye asesoramiento financiero, fiscal o legal. El rendimiento pasado y las proyecciones de retorno no garantizan resultados futuros. Siempre consulte con profesionales calificados antes de tomar decisiones de inversion.
