Real Estate and Current Situation..

On the north coast everything is priced in dollars. Sales are pretty strong and prices are still going up from what I have seen. Building is completing but new starts are on hold because of the now more expensive build. We just had an agreed on sale price at the condo I live at and it is at the highest rate so far ever in this complex. Too bad it wasn't mine

I was going to start some construction now but have put it off till Jan-Feb hoping for some reason in valuation of the peso.

I just closed this week on 4300 m2 on the El Choco Rd. next to C.L.II but don't plan on buying anything more nor building anything for a while. Should be closing on a mortgage with a fellow who is building this week also. I think he is crazy because of the timing but it is a good deal for me and he wants to keep going so we will close on this. Money isn't hard to come by but is expensive due to government offers of 30 plus percent interests.

How this answers your question from my point of view.

Escott

Realtors from several different companies have told me business is pretty good, with a lot of interest coming from the US. As Scott indicated, the properties these realtors deal in are priced in dollars, not pesos.

Going by the traffic that's passing through our real estate section, still lots of interest here in the DR.

http://dr1.com/realestate/

I've got a project on hold as construction prices are way to high. I'll see about the new year but sales are strong just like the others have said, it's all in dollars.

Cry,Cry,Cry

Toronto2inDR said:

I've got a project on hold as construction prices are way to high. I'll see about the new year but sales are strong just like the others have said, it's all in dollars.

Click to expand...

I didnt see you guys crying when it wa 56 to the dollar, so move over and give a guy with Pesos a chance..Just bought the allmighty Dollar today for 29. He He . Off to buy a couple of meters of Beachfront..All I need is a walkway.. Cheers...M.

Robert said:

Going by the traffic that's passing through our real estate section, still lots of interest here in the DR.

http://dr1.com/realestate/

Click to expand...

Man you have to spam every thread with unpaid for advertising? LOL

Chris said:

Are people selling because they're leaving, or simply selling houses/land that they bought as investments - I'm talking about normal people owning property, not people who make their money in the industry.

Click to expand...

A little bit of this and a little bit of that... who the heck knows?

As for real estate prices, there is probably not one only answer as there are distinct markets.

It is imho quite seldom that you see real estate professionals and investors saying that the prices are going down. Just saying that pessimists would not give their opinion.

Anyway it is good news to hear there is steady interest from US buyers, despite of current exchange rate. This goes in contradiction with the widespread opinion on DR1 that the DR is going to crash.

About the recent price increase mentioned by Escott, I wonder if it is a consequence of this continuous demand from USA or just a mechanical conversion of a peso price.

I mean that even if properties are priced in USD for the buyer's convenience, they are in a peso environment and that no seller would accept to get now half as many RD$ as he would have got 6 months ago.

I am not a real estate man but, as I posted in a previous post, I think that all those who have invested in the past in Dominican properties are making big profit out of the current exchange rate, because peso prices will not drop as much as the dollar.

About the construction cost, it will go down rapidly as shown by the drop in cement prices, although there was a big increase in the wages recently. Also, in case of a whole quality house to be built, it may not be absurd to consider the possibility to import directly doors, windows, fixtures, appliances, flooring and even furniture.

Barnab?

Chris said:

Yes, this is what is kinda bothering me in the back of my mind. On the one hand, there is an amount of doom and gloom, and on the other, real estate on the North Coast, seems to be holding its own. From what I think would happen, is that people would sell and prices would go down. But it seems as if the selling and buying is following quite a normal pattern. So, I'm just wondering if this sector is going to show some impact and what impact it would be?

Click to expand...

Real Estate Selling on North Coast, but prices way down. It is a market for Bottom Fishing.

Chris said:

Yes, this is what is kinda bothering me in the back of my mind. On the one hand, there is an amount of doom and gloom, and on the other, real estate on the North Coast, seems to be holding its own. From what I think would happen, is that people would sell and prices would go down. But it seems as if the selling and buying is following quite a normal pattern. So, I'm just wondering if this sector is going to show some impact and what impact it would be?

Click to expand...

Americans aren't buying here because of the exchange rate. They are buying because they get a very nice house in the Caribbean for much, much less than they would pay in any other Caribbean island of interest, and much less than they would pay for comparable property in Florida.

Somebody in New York City, for example, can be in his house in Cabarete or Sosua in about the same time as he could reach his vacation home in Florida.

This business about the DR crashing has more to do with all the hotel rooms that must be filled than in does investing in a second home. This is still a great place for investors, which is why so many are coming here.

mharshman said:

Real Estate Selling on North Coast, but prices way down. It is a market for Bottom Fishing.

Click to expand...

If that is the case it is news to me. Where on the North Coast are the prices way down, Monti Christi?

We just had a record price on a condo in Sosua and expect them to rise dramatically as the convention center/casino nears completion. I have NOT seen prices fall at all but rather have seen them increase.

Escott

Chris said:

Yes, this is what is kinda bothering me in the back of my mind. On the one hand, there is an amount of doom and gloom, and on the other, real estate on the North Coast, seems to be holding its own. From what I think would happen, is that people would sell and prices would go down. But it seems as if the selling and buying is following quite a normal pattern. So, I'm just wondering if this sector is going to show some impact and what impact it would be?

Click to expand...

After a 10 year fall in R.E. prices in Sosua and a crawl back up for the last 2 years I wouldn't look for any dramatic changes. I think we will see the peso weaken before you will see real estate fall.

You don't see as much for sale anymore here and not much new stuff coming on the market. Most of the inventory has been sold in the last year and maybe that is why in Sosua/Cabarete the prices are holding and increasing.

Tell me where there are bargains on the Nortcoast as a result of the falling USD

north coast RE prices

- In sosua you'll find good prices for condos . You can check Tropicana Sur in Pto Chiquito, a 1 Br apt (900ft2) some furnished goes for 23-24K.

I have a potential bussines opportunity brewing near the Airport (Boca Chica)
Know some poeple that own land and business people in US interested in investing in the DR.
Any ideas?

tomgallo said:

- In sosua you'll find good prices for condos . You can check Tropicana Sur in Pto Chiquito, a 1 Br apt (900ft2) some furnished goes for 23-24K.

Click to expand...

That is a lot of money for that location. May as well go to La Union for more than 1/2 less.

I looked at a 2000 Sq. Ft a year and a half ago for 30k right next door and wouldnt even consider buying it. Guess quality of purchase and buy of the week is in the eye of the beholder.


Escott

Escott said:

That is a lot of money for that location. May as well go to La Union for more than 1/2 less.

I looked at a 2000 Sq. Ft a year and a half ago for 30k right next door and wouldnt even consider buying it. Guess quality of purchase and buy of the week is in the eye of the beholder.


Escott

Click to expand...

You can not compare la Union with Tropicana Sur. You do have 24/7 security, the building is solid, has electrical plant, secluded but close to everything. To build an apartment of that size your cost will be in excess of 45K. If the beach below is clean up them you'll see the thru FMV for the place going way up.